https://www.taxtmi.com/caselaws?id=802667 Charitable registration of educational institutions under sections 12A and 12AB of the Income-tax Act, 1961 requires examination of their objects and the genuineness and character of their activities. Statutory status, financial self-sufficiency and retention of surplus are not conclusive. Reasonable surplus is permissible, but systematic, non-incidental profit is inconsistent with charity; no fixed surplus percentage or scholarship ratio is prescribed. Substantial recurring margins and growing accumulated funds, coupled with inadequate particulars of fee fixation, student concessions, project approvals and expansion expenditure, left entitlement to registration unestablished. Subsequent audit allegations were not established facts. en-us Mon, 12 Oct 2026 00:00:00 +0530 Fri, 13 Nov 2026 08:45:15 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=802667 Charitable registration of educational institutions under sections 12A and 12AB of the Income-tax Act, 1961 requires examination of their objects and the genuineness and character of their activities. Statutory status, financial self-sufficiency and retention of surplus are not conclusive. Reasonable surplus is permissible, but systematic, non-incidental profit is inconsistent with charity; no fixed surplus percentage or scholarship ratio is prescribed. Substantial recurring margins and growing accumulated funds, coupled with inadequate particulars of fee fixation, student concessions, project approvals and expansion expenditure, left entitlement to registration unestablished. Subsequent audit allegations were not established facts. Case-Laws Income Tax Mon, 12 Oct 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=802667