MILLENIUM EDUCATION SOCIETY,HISAR vs. INCOME TAX OFFICER (EXEMPTION), ROHTAK, ROHTAK

ITA 4089/DEL/2026Status: DisposedITAT Delhi29 September 2026AY 2027-282 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the Commissioner of Income Tax (Exemption) should have verified the facts regarding the interest-bearing advances made to members/office bearers, specifically their recoverability and the expected repayment within FY 2026-27. Furthermore, the CIT(E) should have examined the objects of the trust to determine if they are charitable in nature. The Tribunal found that the CIT(E) rejected the application solely on the ground of the advances without adequate verification and without considering the charitable nature of the trust's aims. Therefore, in the interest of justice, the matter was remitted back to the CIT(E) for fresh adjudication. The assessee was directed to furnish complete details and cooperate with the proceedings. The Tribunal noted that no adverse findings were given by the CIT(E) regarding the objects of the trust. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Millenium Education Society, which runs Millenium Public School, applied for renewal of registration under Section 12AB of the Income Tax Act, 1961, for Assessment Year 2027-28 onwards. The assessee had previously held registration under Section 12AA until AY 2026-27. During the renewal process, the assessee disclosed making temporary interest-bearing advances to certain members/office bearers, which were expected to be repaid within FY 2026-27. The Commissioner of Income Tax (Exemption), Rohtak, rejected the application solely on the ground of these advances, without questioning the school's existence, recognition, or continuous functioning, and without any adverse findings on the audited accounts. The assessee appealed this order.

What were the issues?

1. Whether the Commissioner of Income Tax (Exemption) was justified in rejecting the assessee's application for renewal of registration under Section 12AB(1)(b)(ii)(B) solely on the ground of temporary interest-bearing advances made to members/office bearers, without verifying their recoverability and repayment timeline, and without examining the charitable nature of the trust's objects? Assessee's contentions: The assessee argued that the advances were temporary, interest-bearing, fully recoverable, and expected to be repaid within the financial year. The rejection was based solely on these advances without any adverse findings on the audited accounts or the charitable nature of the trust's objects. Revenue's contentions: The judgment does not record specific contentions from the revenue regarding this issue. However, the action of the CIT(E) implies that the advances were considered a ground for rejection.

Which sections of the Income-tax Act were involved?

Section 12AB(1)(b)(ii)(B),Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH “F”, NEW DELHI

Before: SHRI SUDHIR KUMAR & SHRI MANISH AGARWAL

For Appellant: Shri Kuldip Khera, CA
For Respondent: Shri K. Hauthang, CIT(DR)
Hearing: 17.08.2026Pronounced: 29.09.2026

PER SUDHIR KUMAR, JM :

This appeal by the assessee is directed against the order dated 18.2.2026 of the Ld. CIT(Exemption), Rohtak passed u/s. 12AB(1)(b)(ii)(B) of the Income Tax Act, 1961. 2. The brief facts of the case are that assessee is a society running Millenium Public School in a rural area since the year 2000, and enjoyed valid registration u/s. 12AA upto AY 2026-27. The applicant applied on 27.9.2025 for renewal of registration under section 12AB for ten years from AY 2027-28, alongwith audit reports of the last three years. In response to a query letter dated 6.1.2026, the appellant disclosed that temporary interest-bearing advances had been m

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 12AB(1)(b)(ii)(B)

All 110 judgments and leading authorities on Section 12AB(1)(b)(ii)(B) →

Recent GST High Court judgments

Search GST case law →