BASUDEV EDUCATIONAL CHARITABLE TRUST,BHUBANESWAR vs. CIT (EXEMPTION), HYDERABAD

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ITA 802/CTK/2025Status: DisposedITAT Cuttack13 May 2026AY 2026-273 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal noted that the CIT(Exemption) focused on the nature of activities rather than their genuineness, which is the requirement under Section 12AB. The financial statements for the period of provisional registration were presented. Therefore, the matter was restored to the CIT(Exemption) for re-adjudication.

What were the facts?

The assessee, an educational trust, filed an application for registration under Section 12A(1)(ac)(iii). The CIT(Exemption) rejected the application, stating that no substantial charitable activities were being carried out. The assessee argued that running an educational institution is a charitable activity and presented financial statements.

What were the issues?

Whether the CIT(Exemption) correctly rejected the registration by focusing on the nature of activities instead of their genuineness as required by Section 12AB.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii),Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “CUTTACK BENCH, CUTTACK

Before: SHRI GEORGE MATHAN & SHRI RAJESH KUMAR

For Appellant: Shri S. Jhajharia, AR
For Respondent: Shri Ashim Kr. Chakraborty, CIT- DR
Hearing: 13.05.2026Pronounced: 13.05.2026

IN THE INCOME TAX APPELLATE TRIBUNAL “CUTTACK BENCH, CUTTACK VIRTUAL HEARING AT KOLKATA BEFORE SHRI GEORGE MATHAN, JUDICIAL MEMBER AND SHRI RAJESH KUMAR, ACCOUNTANT MEMBER ITA No.802/CTK/2025 Assessment Year: 2026-27 Basudev Educational CIT (Exemption), Hyderabad Charitable Trust Vs C/o M/s Salarpuria Jajodia & Co., 7, C R Avenue, 3rd Floor, Kolata. (PAN: AADTB9208Q) (Appellant) (Respondent)

Assessee by : Shri S. Jhajharia, AR Revenue by : Shri Ashim Kr. Chakraborty, CIT- DR Date of Hearing : 13.05.2026 Date of Pronouncement : 13.05.2026

ORDER PER BENCH: This is an appeal filed by the assessee against the order of the CIT(Exemption, Hyderabad [hereinafter referred to as the ‘CIT(E)’] in application no. CIT(Exemption), HYD/2024-25/12AA/11924 dated 16.12.2024 rejecting the assessee’s claim for registration u/s 12A(1)(ac)(iii) of the Income Tax Act. 2. Shri S. Jhajharia, AR, represented on behalf of the assessee and Shri Ashim Kr. Chakraborty, CIT-DR represented on behalf of the revenue.

3.

It was submitted by the ld. AR that the ld. CIT(E) has rejected the registration observing that no substantial activity which are charitable in

ITA No.802/CTK/2026

nature are being carried out by the assessee. The ld. AR drew our attention to the provisions of section 12AB(1)(b)(i)(A) of the Act to submit that what the ld. CIT(E) is liable to look for is the genuineness of the activity of the trust. It was the submission that the assessee is running an educational institution where MBA courses and postgraduate diploma in management courses are being conducted. It was the submission that training in management is also being given. The ld. AR drew our attention to the Income & Expenditure A/c for the year ending 31.03.2024 and 31.03.2025. It was the submission that the assessee has collected fees of more than 1.3 crores for the year ending with 31.03.2024 and has made excess income over expenditure of only Rs.49,250/-. Similarly for the year ending with 31.03.2025, the assessee has receipt of Rs.1,34,78,353/- and the excess of income over expenditure was only Rs.73,228/-. It was the submission that education is a charitable activity. It was the submission that these facts have not been considered by the ld. CIT(E). It was prayed that the issues may be restored to the file of the ld. CIT(E) and that the assessee would be able to substantiate its claim that its activity is genuine.

4.

In reply, the ld. Sr. DR did not raise any objection to the issues being restored to the file of the ld. CIT(E) for re-adjudication.

5.

We have heard the rival submission. As it is noticed that the ld. CIT(E) has only considered the activities of the assessee and observed that no substantial activities which are charitable in nature has been 2

ITA No.802/CTK/2026

carried out but the requirement to section 12AB is for the ld. CIT(E) to verify the genuineness of the activities and as the assessee has produced the Income & Expenditure A/c for the years ending with 31.03.2024 & 31.03.2025 being the period during which the assessee was having provisional registration, the issues in this appeal are restored to the file of the ld. CIT(E) for re-adjudication after granting the assessee adequate opportunity of being heard.

6.

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

Kolkata, the 13th May, 2026.

Sd/- Sd/- [Rajesh Kumar] [George Mathan] लेखा सदस्य/Accountant Member न्याययक सदस्य/Judicial Member

Dated: 13.05.2026. RS Copy of the order forwarded to: 1. Appellant - 2. Respondent – 3. CIT(A)- 4. CIT- , 5. CIT(DR),

//True copy// By order Assistant Registrar

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