Batta Educational Foundation vs CIT(Exemption), Chandigarh

PER RAMIT KOCHAR, AM:

This appeal is filed by the assessee against order passed by Learned Commissioner of Income Tax (Exemptions), Chandigarh [CIT(E), in short) dated 23.02.2026( DIN& Notice No. ITBA/EXM/F/EXM45/2025-26/1086385430(1) rejecting application filed by the assessee for seeking registration u/s 12AB of the Income Tax Act, 1961 (“the Act” in short).

Brief facts of the case are that assessee filed an application for registration u/s 12A(1)(ac)(ii) of the 1961 Act , on 29.09.2025. In order to examine the objects, genuineness of the activities and compliances with statutory requirements, notice along with questionnaire was issued by ld. CIT(E). The assessee submitted its response wherein the assessee submitted that the assessee is a foundation dedicated to protecting students/children from violence and sexual abuse. It was submitted that it has led extensive sensitization and capacity building programs for schools., NGO, Parents and Police personnel, training educators and counsellers nationwide and positively impacting the lives of countless children. It was submitted that it conducts training and lectures to school teachers and management covering a wide spectrum of concerns ranging from cyber safety, student well being, child sexual abuse and handling of corporal punishment, to parental engagement and compliance with legal frameworks such as POCSO Act, the Juvenile Justice Act , and other guidelines from National commission for protection of child rights. It was submitted that these trainings have been designed to be practical , implementable and adaptable to different school contexts. It was submitted that it has trained over 8000 teachers and educators impacting lives of thousands of young students studying in schools across the country. The assessee enclosed list of training workshops conducted by it along with photographs. This does not found favour with ld. CIT(E) as the ld. CIT( E) observed that the assessee is charging fees for conducting such as POCSO training programs for schools and institutions , and also conducting training sessions for teachers and staff in compliance of CBSE and regulatory requirements, and the assessee receives fees in a professional and commercial manner. The ld. CIT(E) observed that the assessee failed to demonstrate that such activities are carried out without profit motive or that the consideration received is merely incidental to charitable purposes. The ld. CIT(E) held that such activity is commercial activity. Thus, ld. CIT(E) observed that the assessee is not eligible for registration as charitable institution. The application of the assessee was rejected by ld. CIT(E).

Aggrieved, the assessee has filed appeal before the Tribunal. None appeared for the assessee before the Tribunal when this appeal was called for hearing. The ld. CIT-DR supported the orders of ld. CIT(E)..

We have considered the contentions of ld. Sr. DR and perused the materials available on record. The assessee has filed application with ld. CIT(E) for grant of registration u/s 12AB, dated 29.09.2025. The ld. CIT(E) issued notice along with questionnaire , dated 30.01.2026 to the assessee. The assessee filed reply before ld. CIT(E). The assessee submitted its response before ld. CIT(E) wherein the assessee submitted that the assessee is a foundation dedicated to protecting students/children from violence and sexual abuse. It was submitted that it has led extensive sensitization and capacity building programs for schools., NGO, Parents and Police personnel, training educators and counsellers nationwide and positively impacting the lives of countless children. It was also submitted by assessee before ld. CIT(E) that it conducts training and lectures for school teachers and management covering a wide spectrum of concerns ranging from cyber safety, student well being, child sexual abuse and handling of corporal punishment, to parental engagement and compliance with legal frameworks such as POCSO Act, the Juvenile Justice Act , and other guidelines from National commission for protection of child rights. It was submitted that these trainings have been designed to be practical , implementable and adaptable to different school contexts. It was also submitted by assessee before ld. CIT(E) that it has trained over 8000 teachers and educators impacting lives of thousands of young students studying in schools across the country. The assessee enclosed list of training workshops conducted by it along with photographs , before ld. CIT(E). The ld. CIT(E) dismissed the application for registration u/s 12AB on the grounds that the assessee is engaged in commercial activity as the assessee is charging fees for conducting POCSO training and other training programs. We have observed that ld. CIT(E) has not made proper enquiry before arriving at its decision as is contemplated by Hon’ble Supreme Court in the judgment and order dated 19.10.2022 in the case of ACIT v. Ahmedabad Urban Development Authority reported in (2022) 143 taxmann.com 278(SC). Thus, we direct ld. CIT(E) to decide the application filed by the assessee for registration u/s 12AB in the light of aforesaid decision and also applicable statutory provisions of the Income-tax Act. The orders of the ld. CIT(E) , dated 23.02.2026 is set aside and the matter is restored back to the file of the ld. CIT(E) for denovo determination of the aforesaid application for registration u/s 12AB on merits in accordance with law after giving opportunity of being heard to the assessee. Evidences/ contentions filed by the assessee before the ld. CIT(E) shall be admitted by the ld. CIT(E) and shall be decided on merits in accordance with law. The appeal of the assessee is allowed for statistical purposes. We order accordingly.

In the result, the appeal filed by the assessee is allowed for statistical purposes.