M/s Jai Santoshi Maa Educational and Charitable Trust vs Income Tax Officer (Exemptions), Faridabad

Per Mahavir Singh, Vice President:

This appeal by the assessee is directed against the order of learned CIT(Exemptions), Chandigarh dated 8^th December, 2025 whereby the application of the assessee in Form 10AB under Section 12A of the Income-tax Act, 1961 (hereinafter referred to as 'the Act') was rejected.

Nobody appeared on behalf of the assessee at the time of hearing. It is observed from the order of learned CIT(Exemptions) that the assessee has not filed supporting evidences in support of its claim to be engaged in educational activities and even the assessee for the year ending 31^st March, 2025 has earned only bank interest and rental income on account of exploitation of this property i.e., school plot allotted to the assessee during financial year 1996-97 for the purpose of running of nursery school. Learned CIT(Exemptions) noted that the assessee admitted in its response that it was running a school up to financial year 2021-22 and thereafter, has let out the property at monthly rent of ₹80,000/- whereas security deposit of ₹50 lakhs has been taken which establishes the fact that the assessee is exploiting the property commercially. Hence, he denied registration of the trust under Section 12A(1)(ac)(ii) of the Act. We noted that it is not coming out of the order of learned CIT(Exemptions) that what was the activity carried on during assessment year 2022-23, 2023-24 and 2024-25 and learned CIT(Exemptions) herself admitted that assessee has not filed any documentary evidence that it is engaged in educational activity during the subsequent years as well. Hence, for allowing one more opportunity to the assessee to file the details so that learned CIT(Exemptions) can examine and then reach to a conclusion that assessee is engaged or not in the activities as mentioned in the memorandum of association, the matter is restored to his file. Learned CIT(Exemptions) will examine the details and record a finding qua this fact. Hence, the order of learned CIT(Exemptions) is set aside and matter remanded to him for fresh adjudication.

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