ARSHA VIDYA RESEARCH AND PUBLICATION TRUST,CHENNAI vs. CIT EXEMPTIONS , CHENNAI

ITA 2907/CHNY/2026Status: DisposedITAT Kolkata24 September 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the Commissioner of Income Tax (Exemption) erred in rejecting the assessee's application for registration under Section 12AB of the Income Tax Act, 1961. The CIT(E) relied on Supreme Court decisions in Sole Trustee, Loka Shikshana Trust and New Noble Educational Society without adequately examining the objects of the assessee's trust and the specific facts of the case. The Tribunal found merit in the assessee's argument that a fresh examination by the CIT(E) was necessary, considering the trust's objects. Therefore, the CIT(E)'s order was set aside, and the matter was remanded for fresh examination. For the appeal concerning Section 80G(5) approval, the Tribunal noted it was consequential to the Section 12AB issue. As the Section 12AB matter was remanded, the Tribunal also remanded the Section 80G(5) approval application to the CIT(E) for fresh examination. The grounds raised by the assessee in both appeals were allowed for statistical purposes.

What were the facts?

The assessee, Arsha Vidya Research and Publication Trust, filed appeals challenging orders passed by the Commissioner of Income Tax (Exemption), Chennai. The appeals pertained to the rejection of the assessee's applications for registration under Section 12AB and approval under Section 80G of the Income Tax Act, 1961. The assessee argued that the CIT(E) rejected the applications based on Supreme Court decisions without considering the specific facts and objects of the assessee's case. The revenue supported the CIT(E)'s order. The Tribunal heard both appeals together as they involved similar facts and issues. The appeals were filed against the order dated 24.03.2026.

What were the issues?

1. Whether the Commissioner of Income Tax (Exemption) erred in rejecting the assessee's application for registration under Section 12AB of the Income Tax Act, 1961, solely based on Supreme Court decisions without considering the assessee's specific facts and objects? Assessee's Contention: The Ld. AR argued that the CIT(E) rejected the application for registration under Section 12AB based on decisions in Sole Trustee, Loka Shikshana Trust and New Noble Educational Society, without adequately considering the facts and circumstances of the assessee's case. The CIT(E) arbitrarily held the application could not be processed. The assessee prayed for a remand for fresh examination. Revenue's Contention: The Ld. DR vehemently opposed the appeal and supported the order of the CIT(E). 2. Whether the Commissioner of Income Tax (Exemption) erred in rejecting the assessee's application for approval under Section 80G(5) of the Income Tax Act, 1961, when the issue is consequential to the rejection of the Section 12AB application? Assessee's Contention: The Ld. AR submitted that this issue is consequential to the appeal concerning Section 12AB. As the Tribunal decided to remand the Section 12AB issue, the assessee prayed for a similar remand for the Section 80G approval. Revenue's Contention: The Ld. DR did not dispute the assessee's contention.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G(5)

AI-generated summary — verify with the full judgment below

Before: SHRI. INTURI RAMA RAO & BEFORE SHRI S.S. VISWANETHRA RAVI

Hearing: 09.09.2026

PER S.S. VISWANETHRA RAVI, JUDICIAL MEMBER:

without taking into account the facts These appeals are filed by the assessee is directed against the order dated 24.03.2026 passed by the Commissioner of Income Tax (Exemption), Chennai.

2.

Since the issues raised in both the appeals are similar based on same identical facts. Upon hearing both the parties and with their

ITA No.2906 & 2907/Chny/2026

consent, we proceed to hear both the app

The order continues below.

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