HEMA EDUCATIONAL TRUST,NADAUN, HAMIRPUR, HIMACHAL PRADESH vs. ITO EXEMPTIONS WARD SOLAN, HIMACHAL PRADESH

ITA 832/CHANDI/2026Status: DisposedITAT Chandigarh01 October 2026AY 2022-233 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the assessee is engaged in educational activities that necessitate approvals and affiliations from appropriate authorities before commencement. Without these approvals, the assessee cannot initiate educational courses. Accepting the assessee's plea, the Tribunal set aside the impugned order passed by the CIT(E). The matter of registration was restored to the CIT(E) for fresh consideration. The assessee was directed to demonstrate the required approvals and the commencement of educational activities. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Hema Educational Trust, filed an application seeking registration under Section 12AB of the Income Tax Act. The Commissioner of Income Tax (Exemption), Chandigarh (CIT(E)), rejected this application via an order dated 02.03.2026. The rejection was based on the finding that the assessee had not demonstrated concrete steps towards reviving its stated educational activities. The CIT(E) observed that a mere assertion of temporary suspension, without verifiable material of ongoing or imminent charitable activity, did not establish the genuineness of the assessee's activities. The assessee appealed this rejection to the Income Tax Appellate Tribunal (ITAT). The dispute concerns the denial of registration for an unspecified assessment year.

What were the issues?

1. Whether the rejection of the assessee's application for registration under Section 12AB of the Income Tax Act, 1961, was justified on the grounds of not demonstrating concrete steps towards revival of educational activities. Assessee's Contention: The assessee argued that its Balance Sheet shows sufficient current and fixed assets, and it intends to commence educational activities upon receiving necessary approvals from appropriate authorities. These approvals are expected shortly, and the assessee requested reconsideration of the registration in light of these subsequent approvals. Revenue's Contention: The revenue, represented by the learned CIT-DR, contended that the assessee failed to establish the genuineness of its activities.

Which sections of the Income-tax Act were involved?

Section 12AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, CHANDIGARH

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI RAJESH DAMODARLAL SHARMA, JM

Manoj Kumar Aggarwal (Accountant Member)

1.

Aggrieved by rejection of an application as filed by the assessee seeking registration u/s 12AB vide rejection order dated 02.03.2026 of Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)], the assessee is in further appeal before us. Upon perusal of paras 4.3 & 5 of the impugned order, it could be seen that the registration has been denied on the ground that no concrete steps were shown to have been taken by the assessee towards revival of its stated educational activities. I

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

All 5,972 judgments and leading authorities on Section 12AB →

Recent GST High Court judgments

Search GST case law →