Mor Education Society vs ITO(Exemption)

PER VIMAL KUMAR, JM:

The appeal filed by the assessee is against the order dated 18.02.2026 of the Ld. Commissioner of Income Tax (Exemption)-Delhi [hereinafter referred to as “the CIT(A)”] rejecting application for registration u/s 12A(1)(ac)(ii) of the Income Tax Act, 1961 (hereinafter reffered to As ‘The Act’).

Ld. Authorized Representative for appellant/assessee submitted that Ld. CIT(E) erred in rejecting application u/s 12A(1)(ac)(ii) of the Act on the ground that (i) Loans and advances were made to members in violation of the MOA (ii) Explanations remain unsupported by evidences and (iii) the conduct reflects financial impropriety and lack of transparency. And on the basis that the applicant has therefore failed to discharge the onus cast upon it under section 12AB. Ld. CIT(E) failed to appreciate that M/s. Mor Education Society is a registered society under the Haryana Society Registration Act, 2012 under registration number HR/12/2016/01829 dated 06.06.2016 with District Registrar of firm & Societies Hisar, PAN of the society is AABAM2049R and filed regularly its Income Tax Return since its inception and up to Assessment Year 2025/26. Main Object of the Society is providing education to the society and to have it, carrying and run one school in the name of Kartar Memorial Senior Secondary School, Village Bass Haryana and another college in the name of Kartar College of Education at Village Bass, District Hisar, Both school and college are situated in the rural area at village in the most backward District of Haryana.

Ld. Departmental Representative relied on impugned order.

From examination of record in light of rival contention, it is crystal clear that Ld. CIT(E) vide impugned order dated 18.02.2026 rejected application u/s 12A(1)(ac)(ii) of the Act for grounds of loans and advances were made to members in violation of the MOA explanation remain unsupported by evidences and the conduct reflects financial impropriety and lack of transparency. The appellant/assessee claims that he had submitted expenditures 1 to 10 attached alongwith paper book before Ld. CIT(E) who failed to consider the same.

In view of above material facts and in interest of substantial justice, impugned order dated 18.02.2026 is set aside and the matter is restored to the files of Ld. CIT(E) for afresh decision in accordance with law after affording fair opportunity of hearing to the appellant/assessee.

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