IQBAL MOHAMED TRUST,LOVEDALE vs. CIT, EXEMPTION, CHENNAI

आयकर अपीलीय अिधकरण, ‘ए’
यायपीठ, चे ई।
IN THE INCOME TAX APPELLATE TRIBUNAL
‘A’ BENCH: CHENNAI

ी एबी टी. वक
, ाियक सद एवं
एवं
एवं
एवं

ी जगदीश, लेखा सद के सम

BEFORE SHRI ABY T. VARKEY, JUDICIAL MEMBER AND SHRI JAGADISH, ACCOUNTANT MEMBER

आयकर अपील सं./ITA No.539/Chny/2025
िनधारणवष/Assessment Year: -

Iqbal Mohamed Trust,
638/1, Gandhipet,
Kollimalai Road,
Lovedale-643 003. v.
The CIT (Exemptions),
Chennai.
[PAN: AAATI 1383 A]
(अपीलाथ/Appellant)
(यथ/Respondent)
अपीलाथ क ओर से/ Appellant by :
Mr.T. Banusekar, Advocate &
Ms. A. Sharren, Advocate
यथ क ओर से /Respondent by :
Ms. E. Pavuna Sundari, CIT
सुनवाईकतारीख/Date of Hearing
:
22.10.2025
घोषणाकतारीख /Date of Pronouncement
:
04.11.2025

आदेश / O R D E R
PER ABY T. VARKEY, JM:

This is an appeal preferred by the assessee against the order of the Learned Commissioner of Income Tax (Exemptions), (hereinafter referred to as “the Ld.CIT(E)”), Chennai, dated 27.12.2024 rejecting the application filed by the assessee in Form 10AB, seeking registration u/s 12A(1)(ac)(iii) of the I
“the Act”).
2. The facts as noted is running an education
Academy’ at Lovedale, assessee trust was earl
21.05.1998. In view of the assessee is noted provisional registration registered from AYs 2
found to have filed
12A(1)(ac)(iii) of the observed that, the Ld various details/explana carried out by the Trust considering the details
CIT(E)is noted to have on three grounds viz., fall within the ambit of the assessee trust also any university or gover
ITA No.539
Iq
:: 2 ::

ncome Tax Act, 1961 (hereinafter d are that, the assessee is a charita al institution in the name and style
, Ooty. It was brought to our n ier registered u/s. 12A of the Act v the new regime notified by the Fina d to have filed applications in F on 27.05.2021 and the assessee wa
021-22 to 2023-24. Thereafter, t application for permanent re
Act on 15.06.2024 with the Ld.
. CIT(E) had issued a questionna tions from the assessee regarding t, which was complied with by the placed by the assessee on his r rejected the application for perman
(a) the activity of teaching photog education as per Section 2(15) of th does not have any recognition or nment agency; and (b) there was n

9/Chny/2025 (AY -) qbal Mohamed Trust referred to as ble trust, which of ‘Light & Life notice that the ide order dated ance Act, 2021,
Form 10AB for as provisionally he assessee is egistration u/s . CIT(E). It is aire calling for g the activities assessee. After record, the Ld.
ent registration raphy does not he Act and that affiliation with no provision for payment of faculty fees by the assessee trust w received any voluntary assessee trust is not ch by the Ld. CIT(E) for re the Act, is as follows:-
“…Thus, from the of being collectin the limb set by Court, as the trus
(a) not conductin
(b) not having a affiliated to any r
(c) the activities fees with an elem
….
- On perusal of 1. there is no pr deed.
2. The total tru constitutes an av does not seem to - Also, it is seen applicant is not i involved in any activities of the fo
The applicant h charitable and do
ITA No.539
Iq
:: 3 ::

s in the deed and therefore the paym was not reasonable; and (c) the as donations which meant that the a haritable in nature. The relevant fin ejecting the application for registrat e above, it is very clear that the activities ng fees for teaching photography will not the Income Tax Act and the Hon’ble S st is g a formal education and a valid recognition from any authority a ecognized universities or government agen are carried out in a commercial way by co ment of profit motive involved in it.
the trust deed, it is seen that rovision for payment of such faculty fees ustee fees paid as ‘faculty fees’ approx verage of 63% of the faculty fee receipts o be reasonable.
n from the Income & Expenditure stateme in receipt of any voluntary donation and charitable activities. Thus, it is evident t oundation cannot be held as charitable.
has not substantiated that the activiti o not work in commercial lines. Hence, the 9/Chny/2025 (AY -) qbal Mohamed Trust ments so made sessee had not activities of the ndings rendered tion u/s 12A of of trust fit into upreme and not ncy.
ollecting s in the ximately s, which ent, the has not that the ies are activity of the trust does
2(15) of the Act.”
3. Aggrieved by the 4. Assailing the actio submitted that, the Ld.
any notice or calling for unilateral action withou impugned order to be justice. The Ld. AR su assessee with his abov suitable responded and Ld. AR has filed an a Tribunal Rules, 1963 b inter alia comprising of 1. Course Content –
Academy
2. About the Campus
3. Profile of Mr. Iqba
Academy
4. Profile of Ms. Anu
Academy
5. Sample of Assignm
6. Sample assessme
7. Breakup of paym period 2021-22, 2
ITA No.539
Iq
:: 4 ::

s not fall in the ambit of ‘Education’, as p
”
above order, the assessee is in appe on of the Ld. CIT(E), the Ld. AR o
CIT(E) had rejected the application r explanation on these aspects and ut giving opportunity of being hear bad in law for violation of princi bmitted that, had the Ld. CIT(E) ve observations, then the assesse addressed the same. In support of pplication in terms of Rule 29 of by way of additional evidence befo the following details:-
– Details about the course offered by Ligh s of Light & Life Academy al Mohamed – Founder and Director of Ligh uradha – Co-Founder and Director of Ligh ment given to Students for assessment nt sheets showing grades secured by the s ment made to faculties and Admin Head
2022-23 and 2023-24. 9/Chny/2025 (AY -) qbal Mohamed Trust per Sec eal before us.
of the assessee without issuing therefore such d rendered the ples of natural confronted the ee would have f the same, the f the Appellate ore this Bench, t & Life ht & Life t & Life tudents for the 5. The Ld. AR has a of the observations ma whose relevant extracts
•
It is humbly sub of Light & Life Ac course offered by t relating to the cou evidence. It may be whole time course a scholastic educa concerning educati course as a mean t

•
It is further sub which includes a o photography studio imparting knowledg an Auditorium, Lib details of which are as additional eviden

•
Shri. Iqbal Moh graduate from Loy photography abro
California, USA. Sh professional photog
Jay Silverman befo on to gain recognit has worked with ma

•
Ms. Anuradha ( graduate degree h diploma in Adverti field of Advertising communication. La with many national

•
The detailed pr additional evidence

•
Further to dem that the students a helps them in unde sample assessmen assignments given

•
The amount of other faculties. It m from Rs.7,000/- to K Mohamed is Rs.1
is submitted that th of the academy. It ITA No.539
Iq
:: 5 ::

lso furnished a written submission de by the Ld. CIT(E) for rejecting t s are reproduced below:- bmitted that the appellant trust runs an academ cademy which conducts a one year classroom the academy is divided into various sections a urse are explained in the course content filed e noted that the entire course is for a one year enabling its student to learn in order to earn a ation. The term scholastic is normally met ion and as already stated the course is run o earn a living.
bmitted that the Academy is spread over 50,00
one of kind full – facility automobile and lar o of 5000 sq.ft and 14 studios dedicated e ge on professional photography. The Academy rary, equipment store, Professional Dressing R e given as “About the Campus of Light & Life A nce.
hamed (Founder and Director of Light & Life A yola College and amongst the first to stud ad at the renowned Brooks Institute of hri. Iqbal Mohamed had worked with some of graphers in Hollywood like Dick Zimmerman, ore returning to India. Thereafter, Shri.Iqbal M tion as one of India’s leading professional pho any national and international brands.
(Co-founder and director of Light & Life Acade holder in Economics from Mumbai University.
sing and Marketing was done and started her g where she was in charge of building brands ter she focused exclusively on photography an and international brands in the field of advertis rofiles of Shri. Iqbal Mohamed and Ms.Anuradh e.
onstrate that the academy is into providing k are evaluated the sample assignments given t erstanding and exploring ways of taking photog nt sheets showing grades secured by the st to them are enclosed as additional evidence faculty fee paid to the trustee is far less than may be noted that the amount paid to visiting
Rs.71,250/- per day whereas the amount paid
12,000/- per day and Ms. Anuradha is Rs.11,20
he visiting faculty of Light & Life Academy are th may be noted that the ex-students of Light &

9/Chny/2025 (AY -) qbal Mohamed Trust rebutting each the application, my in the name m course. The and the details d as additional duration and a living which is t to mean as as a full time
00sq.ft in Ooty rge production exclusively for y also includes
Room etc. The Academy” filed
Academy) is a y professional
Photography, the celebrated
Bill Werts and Mohamed went otographer and emy) is a post
Thereafter, a r career in the s and handling nd has worked sing.
ha are filed as knowledge and to them which graphs and the tudents in the that is paid to faculty ranges d to Shri. Iqbal
0/- per day. It he ex-students
& Life Academy are being paid mo
Academy. To demo and Admin Head is •
It is submitted university or the lik for the fact remains

•
It can be furth u/s.12A since 1998
changed in any ma
Act.

•
At this stage, activities of the tr activities of the app of the Commissione

•
It is further mo be considered as co losses and applied of the trust in the f
Income Tax (Exe contention of the C the appellant are co

•
At any rate, it m for the purpose of t
6. In view of the ab evidences and remit th novo adjudication of the The Ld. CIT, DR appear of the Ld. CIT(E), did matter back to the L furnished by the assesse
7. Heard both the registered public charita institution, ‘Light and ITA No.539
Iq
:: 6 ::

ore than the full time faculty (who are the tr onstrate the same, the breakup of payments ma filed as additional evidence.
d that the course does not have any recog kewise not come in the way of granting registra s that the trust is engaged in providing scholast her be seen that the trust has been enjoyin
8 and enjoying exemption u/s.11 and the fact sc anner so as to deny registration u/s.12AB of th it is most humbly submitted that without rust in detail treating the same as not educ pellant as commercial in nature is not appropria er of Income Tax (Exemption).
st humbly submitted that the activity of the ap ommercial for the reason that the appellant had the entire receipt received during the year towa financial years which were considered by the Co emption) during the course of proceedings
Commissioner of Income Tax (Exemption) that t ommercial in nature is incorrect.
may be noted that income from the trust is onl trust which is education as the activity.”
ove, the Ld. AR urge us to admit t e matter back to the file of the Ld e issue of grant of registration u/s 1
ring for the Revenue though support not oppose the assessee’s plea fo
Ld. CIT(E), in light of the additio ee.
parties. It is seen that, the as able trust which has been running
Life Academy’ since 1998 and 9/Chny/2025 (AY -) qbal Mohamed Trust rustees) of the ade to facilities gnition from a ation u/s.12AB ic education.
ng registration cenario has not he Income Tax analyzing the cation and the ate on the part ppellant cannot d only incurred ards the object ommissioner of s. Hence, the the activities of y been utilized these additional d. CIT(E) for de
12AB of the Act.
ted the findings r remitting the onal evidences ssessee was a an educational onwards. It is observed that, this trus
11 and 12 of the Act o
Section 12A regime by have sought provisiona for a period of three approached the Ld. CIT that all the requisite det on record. Having perus the Ld. CIT(E) had not rejecting its application purported reasons for d
Act.Undeniably, such ac principles of natural jus law. The Ld. CIT(E) ou assessee before decidin him. Before us, the as written explanations in 1963. For the reasons admit the additional ev matters, remit the impu
ITA No.539
Iq
:: 7 ::

st has been regularly assessed in te over the years. Given the introduct y the Finance Act 2021, the assess l registration which, understandably years. Later on, the assessee is T(E) for permanent registration, and tails as called for by the Ld. CIT(E) w sed the case records placed before u t issued any show cause to the a n nor had he confronted the ass denying the grant of registration u ction of the Ld. CIT(E) was in gross stice and against the basic features ght to have afforded adequate opp ng the application, which we find w ssessee has filed additional eviden terms of Rule 29 of the Appellate discussed in the foregoing, we co idences placed before us and in the ugned matter back to the file of the 9/Chny/2025 (AY -) qbal Mohamed Trust erms of Section tion of the new see is found to y was accorded noted to have d it is observed was also placed us, we find that assessee before essee with his
/s 12AB of the violation of the s of the rule of portunity to the as not done by ces along with Tribunal Rules, onsider it fit to e fitness of the Ld. CIT(E).

आदेश क ितिलिप अेिषत/Cop
1. अपीलाथ/Appellant
2. थ/Respondent
3. आयकरआयु/CIT, Chenn
4. िवभागीयितिनिध/DR
5. गाड फाईल/GF

ITA No.539
Iq
:: 8 ::

mpugned order of the Ld. CIT(E) is to denovo adjudicate the applicatio speaking order after considering th er details/explanations, which may b s to say, the Ld. CIT(E) shall g ard to the assessee in this regard.
appeal is allowed for statistical purp
MEMBER (एबी टी. व
(ABY T. VA

याियक सदय/JUDI ber, 2025. py to:
nai / Madurai / Salem / Coimbatore.

9/Chny/2025 (AY -) qbal Mohamed Trust s set aside. The on filed by the hese additional be furnished by grant adequate poses.

वक
)
ARKEY)
CIAL MEMBER