Pre-primary education qualifies for charitable registration, and alleged section 13 violations cannot bar registration at the threshold.

Running a structured play school and kindergarten was held to fall within "education" under section 2(15), because pre-primary instruction with trained teachers and an organised setup forms part of the foundational education system; registration under section 12A(1)(ac)(ii) was therefore available. An alleged violation of section 13 could not be used to refuse registration at this stage, as the inquiry is confined to the objects of the institution and the genuineness of its activities, while section 13 consequences are to be examined in assessment proceedings. The refusal of registration was set aside.

---

---

Issues: (i) Whether running a play school and kindergarten constitutes "education" within the meaning of section 2(15) so as to entitle the assessee to registration under section 12A(1)(ac)(ii) of the Income-tax Act, 1961; (ii) Whether an alleged violation of section 13 of the Income-tax Act, 1961 can be a ground to refuse registration at the stage of grant of registration.

Issue (i): Whether running a play school and kindergarten constitutes "education" within the meaning of section 2(15) so as to entitle the assessee to registration under section 12A(1)(ac)(ii) of the Income-tax Act, 1961.

Analysis: The assessee was engaged in imparting pre-primary education through a play school and kindergarten, with trained nursery teachers and an organised instructional setup. The restrictive view that only formal, structured schooling amounts to education was held to be too narrow in the present educational framework. The National Education Policy, 2020 recognises Early Childhood Care and Education as part of the foundational education system, and the judicial precedents relied upon also supported the inclusion of pre-primary education within the concept of education.

Conclusion: The activity of running a play school and kindergarten falls within "education" under section 2(15), and the assessee is entitled to registration under section 12A(1)(ac)(ii).

Issue (ii): Whether an alleged violation of section 13 of the Income-tax Act, 1961 can be a ground to refuse registration at the stage of grant of registration.

Analysis: The objection based on section 13 was held to be outside the proper scope of inquiry at the registration stage. At that stage, the authority is concerned with the objects of the institution and the genuineness of its activities, while the question of any violation of section 13 and its consequences is to be examined by the Assessing Officer during assessment proceedings. The alleged diversion of funds, even if assumed, could not justify refusal of registration.

Conclusion: Alleged violation of section 13 could not be used to deny registration under section 12A(1)(ac)(ii).

Final Conclusion: The refusal of registration was set aside, and the assessee was held entitled to registration, with both connected appeals allowed.

Ratio Decidendi: Pre-primary education through a structured play school or kindergarten can constitute "education" for charitable registration purposes, and alleged violations under section 13 cannot be ined at the registration stage to deny such registration.

---