DHARMARAM COLLEGE,BANGALORE vs. ITO EXEMPTIONS WARD 1, BANGALORE

PER KESHAV DUBEY, JUDICIAL MEMBER:

This appeal at the instance of the assessee is directed against the order of ld. CIT (Exemptions), Bengaluru dated 31/12/2025 vide DIN & Notice No: ITBA/EXM/F/EXM45/2025- 26/1084269744(1) rejecting the application filed in Form-10AB dated 16/06/2025 for registration u/s 12AB of the Income Tax Act, 1961 (in short “the Act”).

ITA No.510/Bang/2026 Dharmaram College, Bengaluru Page 2 of 15

filed under section 12A(1)(ac)(ii) for registration under section

12AB of the Income Tax Act, 1961.

2.2 The learned CIT(E), Bangalore erred in not properly

understanding the facts of the case, genuineness of religious

activities carried on by the appellant and the written

submissions along with various documentary evidences filed in

reply to hearing notice issued by the CIT(E), Bangalore.

2.3 The learned CIT(E), Bangalore erred in concluding that the the

assessee has failed to establish a clear link between its stated

objects, its actual activities, financial pattern and therefore the

genuineness of the activities of the assessee cannot be

established on the basis of the material available on record.

2.4 The learned CIT(E), Bangalore erred in denying registration

under section 12AB the claim for registration as a charitable

institution is contrary to its own stated position in view of the

assessee’s own admission regarding the religious nature of its

activities.

2.5 The learned CIT(E), Bangalore erred in not appreciating that

the assessee is a religious organization with religious objects

carried on continuously and while filing the application for

ITA No.510/Bang/2026 Dharmaram College, Bengaluru Page 3 of 15 registration under section 12AB, the nature of activities were

inadvertently stated to be charitable.

2.6 The learned CIT(E), Bangalore erred in concluding against the

appellant for various impugned reasons which were not

included in the show cause and for which no opportunity of

hearing was provided to the appellant.

2.7 On facts and circumstances of the case and law applicable, the

impugned order passed by the CIT(E), Bangalore rejecting the

application filed under section 12A(1)(ac)(ii) for registration

under section 12AB is bad in law, liable to be quashed and the

appellant should be granted registration under section 12AB as

a religious organisation.

The Appellant submits that each of the above grounds/ sub- grounds are independent and without prejudice to one another. The Appellant craves leave to add, alter, vary, omit, substitute or amend the above grounds of appeal, at any time before or at, the time of hearing, of the appeal, so as to enable the Income-tax Appellate Tribunal to decide the appeal according to law.

The appellant prays accordingly.

registered under the Karnataka Societies Registration Act, 1960

vide registration No. 09/78-79. The assessee society was initially

ITA No.510/Bang/2026 Dharmaram College, Bengaluru Page 4 of 15 granted registration under section 12A of the Act vide registration

number PRO.718/10A/Vol.AI/D.145 issued by the Commissioner

of Income Tax, Karnataka- II, Bangalore vide order dated 22.5.1980.

Subsequently, the assessee society was also granted registration

under sub clause (i) of clause (ac) of sub-section (1) of section 12A

of the Act vide Unique Registration Number (URN):

AAATD1013AE19801 dated 07/04/2022 effective from AY 2022-

23 to AY 2026-27. The assessee society is also registered under the

Foreign Contribution (Regulation) Act, 2010 vide Registration

Number 094420284 as a Religious Association. Thereafter, the

assessee trust filed an application in Form No 10AB for renewal of

registration under section 12A(1)(ac)(ii) of the Act on 16.6.2025.

However, the contention of the assessee society is that while filing

the application for renewal in form 10AB on 16.06.2025, the

assessee trust inadvertently mentioned the object of the applicant

as “Relief of the Poor, Education, Medical relief & Advancement of

any other objects of general public utility” instead of “Religious”.

The ld. CIT(E), Bengaluru thereafter, vide notice dated 4.10.2025,

called for various details and documents. The AR of the assessee

appeared and filed submissions on 15.10.2025. Further, vide SCN

dated 27.10.2025, the CIT(E), Bangalore called upon the assessee

to show cause as to why the registration under the Act should not

be rejected for the reasons mentioned therein. The assessee

submitted its response on 23.12.2025 with the detailed

ITA No.510/Bang/2026 Dharmaram College, Bengaluru Page 5 of 15 explanations to various issues raised by the ld. CIT (E) along with

various documents. The ld. CIT(E), Bangalore however passed the

order in Form No 10AD on 31.12.2025 and rejected the application

filed in Form-10AB dated 16.06.2025 for registration u/s.12AB of

the Act with the following observations which are reproduced below-

“7. The reply of the assessee has been carefully considered but is not found to be satisfactory. While the assessee has described its activities as religious in nature, it has failed to prove that the actual activities and financial transactions match with the objects stated in the Memorandum of Association. The assessee has itself admitted that it is not managing any formal educational institution, despite education being a key object. Further, no documentary evidence has been furnished to clearly establish how the substantial receipts from Christ University-associated institutions are applied towards the stated objects of the trust.

ITA No.510/Bang/2026 Dharmaram College, Bengaluru Page 6 of 15 actual activities and financial pattern. The explanations offered are not supported by adequate documentary evidence. Therefore, the genuineness of the activities of the assessee cannot be established on the basis of the material available on record. In view of these facts and circumstances, the application of the assessee is liable to be rejected, as the assessee has failed to satisfy the conditions prescribed for grant of registration under u/s 12AB of the act. In view of the above, the application in Form-10AB dated 16.06.2025 for registration u/s.12AB vide section 12A(1)(ac)(ii) is therefore rejected.”

31/12/2025, the assessee trust has filed the present appeal before

this Tribunal. The assessee has also filed a paper book comprising

147 pages containing therein various documents/record/report/

notes/financials/certificates/forms/notices/List of students relied

upon by the assessee in support of its case.

CIT(E) has rejected the application for extraneous or irrelevant

reasons and the same is not in accordance with the provisions of

section 12AB(1)(b) of the Act. Further, the ld. AR of the assessee

argued that the genuineness of activities of the Trust as per section

12AB(1)(b) is established in the present case and hence the

assessee trust deserves the registration under section 12AB(1)(b) as

a religious trust. The renewal of registration under Foreign

Contribution (Regulation) Act as Religious Association was relied

upon to support the case of the assessee trust.

ITA No.510/Bang/2026 Dharmaram College, Bengaluru Page 7 of 15 6. The ld. DR on the other hand relied on the order of the ld.

CIT(E) and justified the rejection of the application filed for the

registration.

materials available on record. The assessee is a major study house

of the Carmelites of Mary Immaculate (CMI) Congregation. As stated

by the AR of the assessee, it aims at educating people who are

prepared to commit themselves to the service of the Church and the

world, which is accomplished through a holistic, spiritual,

intellectual and cultural formation. It is a religious seminary

imparting religious education as deemed by its ecclesiastical

authority necessary for becoming priests or any other vocation in

the religious order of the Carmelites of Mary Immaculate. The

assessee society was granted registration under sub clause (i) of

clause (ac) of sub-section (1) of section 12A of the Act vide Unique

Registration Number (URN): AAATD1013AE19801 dated

07/04/2022 effective from AY 2022-23 to AY 2026-27. The assessee

society is also registered under the Foreign Contribution

(Regulation) Act, 2010 vide Registration Number 094420284 as a

Religious Association. Thereafter, the assessee trust filed an

application in Form No 10AB for renewal of registration under

section 12A(1)(ac)(ii) of the Act on 16.6.2025. Before proceeding

ITA No.510/Bang/2026 Dharmaram College, Bengaluru Page 8 of 15 further, it is apposite here to take note of relevant section of the Act

for the purposes of this case which reads as under-

Procedure for fresh registration.

12AB. (1) The Principal Commissioner or Commissioner, on receipt of an application made under clause (ac) of sub-section (1) of section 12A, shall,—

(a) …………..

(b) where the application is made under sub-clause (ii) or sub- clause (iii) or sub-clause (iv) or sub-clause (v) 94[or item (B) of sub- clause (vi)] of the said clause,—

(i) call for such documents or information from the trust or institution or make such inquiries as he thinks necessary in order to satisfy himself about—

(A) the genuineness of activities of the trust or institution; and

(B) the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects;

(ii) after satisfying himself about the objects of the trust or institution and the genuineness of its activities under item (A) and compliance of the requirements under item (B), of sub-clause (i),—

(A) pass an order in writing registering the trust or institution for a period of five years; or

(B) if he is not so satisfied, pass an order in writing,--

(I) in a case referred to in sub-clause (ii) or sub-clause (iii) or sub- clause (v) of clause (ac) of sub-section (1) of section 12A rejecting such application and also cancelling its registration;

(II) in a case referred to in sub-clause (iv) or in item (B) of sub- clause (vi) of sub-section (1) of section 12A, rejecting such application, after affording a reasonable opportunity of being heard;

Thus, as per the above provisions, the ld. CIT(E) has to call for such

documents or information from the trust or institution or make

such inquiries as he/she thinks necessary in order to satisfy

ITA No.510/Bang/2026 Dharmaram College, Bengaluru Page 9 of 15 himself/himself about (A) the genuineness of activities of the trust

or institution; and (B) the compliance of such requirements of any

other law for the time being in force by the trust or institution as

are material for the purpose of achieving its objects. We are of the

considered opinion that the ld. CIT(E) has to pass an order in

writing after satisfying himself/herself about three elements viz., (i) the objects of the trust or institution,

(ii) the genuineness of its activities under item (A) and (iii) Compliance of the requirements under item (B).

7.1 Further, at this relevant juncture, it is also apposite here to

take note of the objects of the trust as enumerated in Memorandum

of Association which are reproduced below for ease of reference &

convenience-

“III. The objects for which the society is established are :- (a) To promote education both religious and secular and charity

and for that purpose to take over the Dharmaram College at

Bannerghatta Road, Bangalore and run it as a religious,

charitable and educational institution as heretofore, by the

Fathers of the Congregation of the Carmelites of Mary

Immaculate, in trust, for the benefit of the student-member of

the said Congregation, during the period of their study of

Theology and other courses of studies that may be given or

provided there.

ITA No.510/Bang/2026 Dharmaram College, Bengaluru Page 10 of 15 (b) To help an all-round development of Dharmaram College, more

importantly in the matter of inter-religious conferences and

discussions and setting up of libraries and archieves. (c) To enable students of other religious orders or congregations to

prosecute all or any of the aforesaid studies, afforded them

every facility for that purpose and to help retain the

individuality of every such religious order while its students

remain on the premises along with such of the members of their

order under whose charge they will be, to let them have a

separate residence in the precinct of the Dharmaram College on

which portions of land as may be allowed for that purpose. (d) To afford the same or such other facilities as may be deemed

proper to such others, irrespective of religion, caste or creed as

may be desirous of taking all or any of the courses of the

studies aforesaid. (e) For the above purposes, to take over and hold as trustees, all

the movable and immovable properties and other assets now or

may hereafter be held by Dharmaram College.”

Thus, the main objects of the assessee trust is to promote

education both religious & secular and for that purpose to take over

the Dharmaram College at Bannerghatta Road, Bangalore and run

it as a religious, charitable and educational institution. The

contentions of the assessee trust are that the objects although do

make a mention of running a charitable institution, the assessee

ITA No.510/Bang/2026 Dharmaram College, Bengaluru Page 11 of 15 has not ventured into charity and remained as a religious

residential institution for Christian priests. We also take note of the

fact that the ld. CIT(E) has also noted the religious activities at para

9 of the rejection order by stating that “Without prejudice to the

above, it is also relevant to note that the assessee has itself admitted

in its reply that it is engaged in religious activities, by stating that it

is a religious institution functioning as a seminary for priests and

that its purpose is imparting religious training to priests.” The objects

of the assessee society are thus religious in nature. Further, we also

take note of the fact that the assessee trust is also granted

registration under the Foreign Contribution (Regulation) Act, 2010

vide Registration Number 094420284 as a Religious Association.

7.2 Before us, the AR of the assessee vehemently contended that

while filing the application for renewal in form 10AB on 16.06.2025,

the assessee trust inadvertently mentioned the object of the

applicant as “Relief of the Poor, Education, Medical relief &

Advancement of any other objects of general public utility” instead

of “Religious”. However, when the Bench enquired about the status

of previous Registrations dated 22/05/1980 as well as

07/04/2022 i.e. whether those were granted as charitable

institution or religious institution, the ld. AR of the assessee

submitted that none of the registration certificate mentioned about

the granting of registration as a charitable entity or religious

ITA No.510/Bang/2026 Dharmaram College, Bengaluru Page 12 of 15 institution. However, in the present case, the assessee has

explained in detail that it is a religious organization by way of the

submissions and details filed before the ld CIT(E) vide petition dated

23.12.2025. It is categorically stated therein that the assessee trust

has not changed its activities in fulfillment of its objectives from the

time of its inception. It has been a ‘Religious Seminary’ for the

priests of the Religious Order of the “Carmelites of Mary

Immaculate” from the date if its inception and continues to be the

same till date. The Carmelites of Mary Immaculate are a religious

order of the Christian Roman Catholic denomination. Religious

instruction and religious teachings pertinent to the denomination

and the religious order are conducted for persons who wished to be

priests in the religious order. It was with a vision to provide a

proper legal structure and regulate this activity; the assessee

society was formed to take over the Dharmaram College which was

the existing system of religious education that existed under the

religious order. The assessee is a residential institution for priests

and for those who desire to enter into the vocation of priesthood

and this is the main object which is been carried on by the assessee

society. In order to justify its religious activities with documentary

evidences, the assessee also submitted the complete list of students

studying the religious courses viz., Bachelor of Theology, Bachelor

of Philosophy, Diploma in Philosophy and Master in Philosophy. It

also submitted the appointment letters of Rector, Administrator and

ITA No.510/Bang/2026 Dharmaram College, Bengaluru Page 13 of 15 others issued by the Prior General, Carmelites of Mary Immaculate.

It is also not in dispute that the renewal of registration of assessee

society under Foreign Contribution (Regulation) Act is issued as a

Religious organization. The income and expenditure account

include expenses of religious nature like expenses on upkeep of

priests, students and religious functionaries, chapel maintenance,

contributions to various other religious institutes etc. It is thus

evident that the activities carried on by assessee society are

religious in nature. We are also of the considered opinion that the

ld. CIT(E) has also not brought on record any adverse material to

dispute the religious activities carried on by the assessee trust.

Further, we are also of the considered opinion that the financial

transactions such as hostel related collections, substantial receipts

from Christ University and associated institutions and its

application towards the religious objects of the assessee society is

the domain of the Assessing Officer to be examined during the

assessment stage. It has nothing to do with the genuineness of

activities of trust or institution. At the time of granting the

Registration, as stated earlier, the ld. CIT(E) has to satisfy

himself/herself about three elements viz., the objects of the trust or

institution, the genuineness of its activities under item (A) and

Compliance of the requirements under item (B). In our opinion, the

ld. CIT(E) having noted the religious character of the assessee trust,

ITA No.510/Bang/2026 Dharmaram College, Bengaluru Page 14 of 15 could have granted registration as a religious trust instead of

rejecting the application.

7.3 We take note of the fact that though no application was made

for registration as a religious Trust as mentioned by the ld. CIT(E) &

the assessee before us contended that the same was an inadvertent

error, accordingly we deemed fit & proper to remit the entire issue

to the file of the ld. CIT(E) to decide afresh in accordance with law

by treating the application filed in form 10AB on 16/06/2025 for

registration as a Religious Trust. As we have already held the

assessee trust to be religious trust, the ld. CIT(E) has to satisfy

himself/herself about three elements viz., the objects of the trust or

institution, the genuineness of its activities under item (A) and

Compliance of the requirements under item (B) before granting

registration as a religious trust. Needless to say, reasonable

opportunity of being heard must be granted to the assessee. It is

ordered accordingly.

for statistical purposes.

Order pronounced in the open court on 19th May, 2026

Sd/- Sd/- (Prashant Maharishi) (Keshav Dubey) Vice President Judicial Member

Bangalore, Dated 19th May,2026. VG/SPS

ITA No.510/Bang/2026 Dharmaram College, Bengaluru Page 15 of 15

Copy to:

By order

Asst. Registrar, ITAT, Bangalore.