THE CAPTAIN TODAR SINGH MEMORIAL CHARITABLE SOCIETY,C/O AKUL AGARWAL AND ASSOCIATES vs. CIT (EXEMPTIONS), CHANDIGARH

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ITA 665/CHANDI/2026Status: DisposedITAT Chandigarh20 July 2026AY 2025-263 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CIT(E)'s classification was not based on the assessee's actual activities, which were primarily charitable and educational. Therefore, the CIT(E) was directed to amend the annexure and grant the status of a 'charitable trust'.

What were the facts?

The assessee-trust, running a school, sought renewal of its registration under section 12AB(1)(b). While registration was granted, the CIT(E) classified it as a 'Religious Entity' instead of a 'Charitable Trust' as claimed by the assessee.

What were the issues?

The key issue was whether the assessee-trust should be classified as a 'Religious Entity' or a 'Charitable Trust' based on its activities.

Which sections of the Income-tax Act were involved?

Section 12AB(1)(b),Section 12A(1)(ac)(i)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, CHANDIGARH

Before: HON’BLE SHRI LALIET KUMAR, JM & HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM

आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aforesaid appeal by assessee arises out of an order passed by Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)] on 25-02-2026 granting registration to the assessee-trust u/s 12AB(1)(b) for AYs 2027-28 to 2031-32. The only grievance of the assessee is that it has been accorded the status of Religious Entity as against the claim of the assessee that it was charitable trust. The Ld. AR contended that the assessee does not carry out any religious

activities and this issue was never confronted to the assessee. Having heard rival submissions, the appeal is disposed-off as under. 2. From case records and assessee’s paper book, it emerges that the assessee was granted registration u/s 12A(1)(ac)(i) on 31.05.2021 for AYs 2002-23 to 2026-27. The assessee is stated to be running a school by the name Tagore Academy Public School. The assessee sought renewal of impugned registration on 29.09.2025 in Form No.10AB specifying that the main objects of assessee’s trust was relief of the poor, education and medical relief. The assessee also furnished its financial statements in support of the same. Though the registration as desired by the assessee was granted, however, it was accorded the status of a religious entity which is the sole grievance of the assessee. The Ld. AR has argued that the activities of the society are primarily charitable in nature and major expenses relate to education only. The same is evident from assessee’s financial statements as placed on record. Quite clearly, the conclusion of Ld. CIT(E) is not based on assessee’s actual nature of activities. Under these circumstances, we direct Ld. CIT(E) to amend the annexure and accord the status to the assessee as a ‘charitable trust’. 3. The appeal stand allowed. Order pronounced on 20th July, 2026 -Sd- -Sd- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AS Dated: 20-07-2026

आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

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ITAT CHANDIGARH

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