KARNATAKA SAMARPANA EDUCATION SOCIETY,BANGALORE vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), BANGALORE, BANGALORE

ITA 1439/BANG/2026Status: DisposedITAT Bangalore29 September 2026AY 2026-274 pages
AI SummaryAllowed

What were the facts?

The assessee, Karnataka Samarpana Education Society, filed an appeal against an order dated January 17, 2026, passed by the Commissioner of Income Tax (Exemptions), Bengaluru. The order granted the assessee registration under Section 12AB(1)(b) of the Income Tax Act, 1961, for assessment years 2027-28 to 2031-32. The assessee's grievance was that the CIT(E) incorrectly characterized its activities as purely charitable, instead of recognizing it as a religious-cum-charitable trust. The assessee had applied for registration in Form 10AB, declaring its dual nature. The appeal challenges the characterization of the trust's activities and the resulting registration order.

What did the Tribunal hold?

The Tribunal held that the assessee's activities, as reflected in its Memorandum of Association, included managing the temporal affairs of the Oblates of St. Francis de Sales and promoting their spiritual, educational, and other interests. The Tribunal noted that the assessee also received significant foreign contributions and undertook religious activities alongside operating schools. Therefore, the Tribunal found that the assessee's registration as solely a charitable trust required modification to reflect its religious-cum-charitable nature. The Tribunal directed the learned CIT(E) to examine the matter further and, if the legal requirements were met, grant registration as a religious-cum-charitable trust. The ratio decidendi is that an entity's registration status must accurately reflect its declared and evidenced objects and activities, including both religious and charitable components, for the correct application of relevant Income Tax Act provisions.

What were the issues?

1. Whether the learned Commissioner of Income Tax (Exemptions) erred in incorrectly characterizing the nature of the Appellant Trust's activities as purely "charitable" instead of recognizing it as a religious-cum-charitable trust, as declared in its application and supported by its Trust Deed and records? (Question of law and fact, concerning Sections 11, 12, 12A/12AB, and 13 of the Income-tax Act, 1961). Assessee's Contentions: - The assessee argued that its application in Form 10AB, its Trust Deed, notes on activities, and supporting records clearly indicated its religious-cum-charitable nature. - It contended that the impugned order lacked any finding, discussion, or conclusion disputing its religious objects or activities. - The assessee submitted that the incorrect characterization was due to non-consideration or incorrect processing of records, not due to any adjudicated ineligibility. - It emphasized that accurate recording of its nature is crucial for the proper application of Sections 11, 12, 12A/12AB, and 13 of the Act. Revenue's Contentions: - The judgment records that the Revenue was represented by Sri. Arvind Kumar Singh, CIT, but does not detail specific arguments made by the revenue.

Which sections of the Income-tax Act were involved?

Section 12AB(1)(b),Section 11,Section 12,Section 12A,Section 13

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, BANGALORE BENCHES, BANGALORE

Before: SHRI PRASHANT MAHARISHI & SHRI SANDEEP SINGH KARHAIL

PER SHRI PRASHANT MAHARISHI, VICE PRESIDENT

1.

This appeal is filed by Karnataka summer per our education society (assessee/appellant/trust) against the order passed by the Commissioner of income tax (exemptions) Bengaluru (the learned that CIT) dated 17 January 2026 under section 12 AB (1) (b) of the act wherein the assessee is granted registered for assessment year 2027 – 28 to 2031 – 32 in form No. 10 AD where the IT

The order continues below.

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