IILM EDUCATION TRUST,GURUGRAM vs. DCIT/ACIT(E)(C-2) CHANDIGARH, CHANDIGARH

PDF · subscribers
ITA 20/CHANDI/2026Status: DisposedITAT Chandigarh11 May 2026AY 2026-20275 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the assessee deserves another opportunity to substantiate its claim by producing requisite documents and information before the CIT(E). The matter was restored to the CIT(E) for fresh adjudication.

What were the facts?

The assessee, IILM Education Trust, applied for registration under Section 12A(1)(ac)(ii) of the Income Tax Act. The CIT(E) rejected the application, holding that the trust was merely transferring funds and not carrying out charitable activities.

What were the issues?

Whether the CIT(E) erred in rejecting the application for registration under Section 12A(1)(ac)(ii) without adequately considering the assessee's charitable activities and supporting documents.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(ii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, CHANDIGARH BENCH, ‘A’, CHANDIGARH

Before: SHRI LALIET KUMAR & SHRI KRINWANT SAHAY

For Appellant: Smt Rano Jain, Advocate (Virtual)
Hearing: 22.04.2026Pronounced: 11.05.2026

आयकर अपील�य अ�धकरण, च�डीगढ़ �यायपीठ, च�डीगढ़ IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH, ‘A’, CHANDIGARH BEFORE SHRI LALIET KUMAR, JUDICIAL MEMBER & SHRI KRINWANT SAHAY, ACCOUNTANT MEMBER आयकर अपील सं./ ITA No. 20/CHD/2026 �नधा�रण वष� / Assessment Year : 2026-27 IILM Education Trust, The DCIT / ACIT €, बनाम Plot No. 71, Village Wazirabad ( C-2, Sector 33, Chandigarh Vs. Gurgaon 122003 �थायी लेखा सं./PAN NO: AAATI9997G अपीलाथ�/Appellant ��यथ�/Respondent ( Hybrid Hearing ) �नधा�रती क� ओर से/Assessee by : Smt Rano Jain, Advocate (Virtual) राज�व क� ओर से/ Revenue by : Smt. Geetinder Mann, CIT DR सुनवाई क� तार�ख/Date of Hearing : 22.04.2026 उदघोषणा क� तार�ख/Date of Pronouncement : 11.05.2026 आदेश/Order Per Krinwant Sahay, AM: Appeal in this case has been filed by the assessee against the order dated 12.12.2023 passed by CIT(A), National Faceless Appeal Centre (NFAC), Delhi

2.

Though numerous ground of appeal have been raised by the Assessee in this appeal but the main grievance of the Assessee is that the Ld. CIT(E) has erred in law and on facts

20-Chd-2026 2 in rejecting the Appellant's application in Form 10AB for registration under section 12A(1)(ac)(ii) vide order dated 09.12.2025, without appreciating the nature of the Appellant as a charitable trust engaged in the object of education and allied charitable purposes.

3.

During the course of proceedings before us, the Ld. Counsel for the Assessee submitted that the Ld. CIT(E), Chandigarh erred both in facts and in law in rejecting the Appellant's application in Form 10AB for registration under section 12A(1)(ac)(ii) vide order dated 09.12.2025, without appreciating the nature of the Appellant as a charitable trust engaged in the object of education and allied charitable purposes.

4.

The ld. Counsel for the Assessee submitted that the learned CIT (E) has gravely erred in interpreting the relationship between the Appellant and the donee (IILM University). It has further been submitted that the Appellant is the sponsoring body of the university and was established with the express intent of furthering the cause of higher education and it continues to fund the university with the same intent. The Ld. counsel further submitted that the

20-Chd-2026 3 learned CIT(E) has gravely made a mistake in holding that the Appellant is "merely engaging in the practice of transferring funds" and "not carrying out any charitable activity” ignoring that the trust deed expressly authorizes donations to other registered charitable institutions with similar objects and Such donations to educational institutions constitute valid application of income for charitable purposes under the Act. A prayer has been made by the Ld. Counsel to set aside the impugned order passed by the learned CIT(E), rejecting the Appellant's application for registration under section 12A(1)(ac)(ii) and restore the matter to the file of the learned CIT(E) for granting an effective opportunity to the Appellant to furnish any further explanations/documents in support of genuineness of its activities and to decide the application afresh in accordance with law

5.

Per contra, the Ld. Departmental Representative relied upon the orders passed by the Ld. CIT(E).

6.

We have given our thoughtful consideration to the impugned orders passed by the Ld. CIT(E) and the submissions advanced by the Ld. Counsel for the Assessee. It is observed that though the Ld. CIT(E) has

20-Chd-2026 4 passed a detailed and comprehensive order, the specific grievance of the appellant-Assessee is that the replies, explanations, and supporting documents furnished during the course of proceedings were not adequately considered, particularly with regard to establishing the genuineness of the activities of the trust. The Assessee has further submitted that it is in a position to place on record additional explanations and documentary evidence in support of the charitable activities carried on by the trust. This contention of the Assessee has not been effectively controverted by the Ld. Departmental Representative by bringing any cogent material on record to the contrary.

7.

Having regard to the totality of the facts and circumstances of the case, and in order to meet the ends of justice as well as to uphold the principles of natural justice, we are of the considered view that the Assessee deserves to be granted one more effective opportunity to substantiate its claim by producing the requisite documents and information before the Ld. CIT(E). Accordingly, the matter is restored to the file of the Ld.

20-Chd-2026 5 CIT(E) for fresh adjudication in accordance with law. The Ld. CIT(E) shall provide adequate and reasonable opportunity of being heard to the Assessee and shall decide the issues afresh on merits after duly considering the evidence and submissions that may be placed on record by the Assessee. The Assessee is also directed to extend full cooperation during the proceedings and shall refrain from seeking unwarranted adjournments.

8.

In the result, the appeal of the Assessee is allowed for statistical purposes.

Order Pronounced on 11.05.2026.

Sd/- Sd/- ( KRINWANT SAHAY) ( LALIET KUMAR ) Judicial Member Accountant Member “आर.के.” आदेश क� ��त�ल�प अ�े�षत / Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 5. गाड� फाईल/ Guard File

सहायक पंजीकार/ Assistant Registrar

More judgments on Section 12A(1)(ac)(ii)

All 679 judgments and leading authorities on Section 12A(1)(ac)(ii) →

Recent GST High Court judgments

Search GST case law →