AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2026 (5) TMI 36
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....u/s 12A(1)(ac)(ii) of the I.T. Act, 1961 and ignoring the supporting evidence as the appellant duly fulfills all the required conditions for granting the renewal of registration u/s 12AB of the I.T. Act, 1961 and duly falls under the scope of section 12A r.w.s. 2(15) of the I.T. Act, 1961. The rejection order is uncalled for as it is totally arbitrary, perverse, contrary to law and against the Principle of Natural Justice. 3. That any other ground may kindly be allowed to be taken at the tie of appeal with due permission. 4. Briefly the facts of the case are that the assessee, The Indian Institute of Model Education Society Chandigarh, filed an application on 26/08/2025, for registration under section 12A(1)(ac)(ii) of the Income Tax Act. The society operates a preschool/ play school under the name Sunshine Meadows, catering to children of tender age. Upon initial scrutiny, the department found the documents provided insufficient to assess the genuineness of the society's activities or to verify compliance with the objects mentioned in its Trust Deed. 5. To further appraise the situation, the CIT(E) issued a questionnaire on 16/09/2025, requesting extensive docum....
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....e assessee preferred in appeal before us on the grounds mentioned in the memo of appeal. 10. During the course of hearing, it was submitted by the Ld. AR that the reasons given by the Ld. CIT(E) for not granting the registration to the assessee under section 12A(1)(ac)(ii) of the Act was primarily on the premises that the assessee is not carrying any charitable activity within the meaning of Section 2(15) of the Act. It was submitted, the Ld. CIT(E) has wrongly held that the assessee is running a play school and a kinder school, which in the opinion of Ld. CIT(E) do not come within the purview of the structured form of education, and therefore, assessee do not qualify as education. 11. The Ld. AR had submitted that there is a paradigm shift in the concept of education under the Statutory and Constitutional Scheme, inasmuch as the Union of India has introduced the National Education Policy 2020, wherein the Early Childhood Care and Education has been recognised as School education, and for that purpose, the Ld. AR had drawn our attention to pages 74 & 75 of the paper book, wherein the Union of India has been running the Pre School Education, i.e., Aangan Baadi Play School, as ....
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....uidelines, the latest research on ECCE, and national and international best practices. In particular, the numerous rich local traditions of India developed over millennia in ECCE involving art, stories, poetry, games, songs, and more, will also be suitably incorporated. The framework will serve as a guide both for parents and for early childhood care and education institutions. 1.4. The overarching goal will be to ensure universal access to high-quality ECCE across the country in a phased manner. Special attention and priority will be given to districts and locations that are particularly socio-economically disadvantaged. ECCE shall be delivered through a significantly expanded and strengthened system of early-childhood education institutions consisting of (a) standalone Anganwadis; (b) Anganwadis co-located with primary schools; (c) pre-primary schools/sections covering at least age 5 to 6 years co-located with existing primary schools; and (d) stand-alone pre-schools - all of which would recruit workers/teachers specially trained in the curriculum and pedagogy of ECCE. 1.5. For universal access to ECCE, Anganwadi Centres will be strengthened with highquality inf....
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.... professional training, mentoring mechanisms, and career mapping. Necessary facilities will also be created for the initial professional preparation of these educators and their Continuous Professional Development (CPD). 1.8. ECCE will also be introduced in Ashramshalas in tribal-dominated areas and in all formats of alternative schooling in a phased manner. The process for integration and implementation of ECCE in Ashramshalas and alternative schooling will be similar to that detailed above. 1.9. The responsibility for ECCE curriculum and pedagogy will lie with MHRD to ensure its continuity from pre-primary school through primary school, and to ensure due attention to the foundational aspects of education. The planning and implementation of early childhood care and education curriculum will be carried out jointly by the Ministries of HRD, Women and Child Development (WCD), Health and Family Welfare (HFW), and Tribal Affairs. A special joint task force will be constituted for continuous guidance of the smooth integration of early childhood care and education into school education. 2. Foundational Literacy and Numeracy: An Urgent & Necessary Prerequisite t....
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....NTT (Nursery Teachers Training Institute) for the purpose of providing education to nursery. 14. It was submitted that in the identical case Hon'ble Punjab & Haryana High Court in the case of CIT(E) Vs. Infant Jesus Education Society vide its order dt. 14/07/2017, after referring to the RTE Act, has granted the registration under section 10(23) of the Act to the kinder garden, 15. Further, it was submitted that the Coordinate Bench in the case of Green Acres Educational Trusts. DCIT in ITA No. 412/Mum/2013 dt. 24/06/2016 granted the exemption under section 12A of the Act and our attention was drawn to para 3.11 and 31.12 of the order. Similar is the fact of another judgment in the case of Life Shines Educational and Charitable Trust Vs. ACIT was decided by the Coordinate Bench of Chennai in ITA Nos. 2818 and 2819/Mds/2014 dt. 05/03/2015. 16. The Ld. AR had submitted that imparting of the nursery education was not only considered as education under the RTE Act but also under the National Education Policy 2020. Therefore, the Ld. CIT(E) erred in relying upon the decision of the Hon'ble Supreme Court in the case of Sole Trustee, Loka Shikshana Trust Vs. CIT in Civil Appeal No....
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....n, as a foundational part of the formal education system. Therefore, the present framework clearly accepts that pre-primary education is an integral part of education. 23. The judicial precedents relied upon by the assessee also support its case. The Hon'ble Punjab & Haryana High Court in CIT(E) vs. Infant Jesus Education Society has accepted that kindergarten education qualifies for exemption. Similarly, the Coordinate Benches in Green Acres Educational Trust vs. DCIT and Life Shines Educational and Charitable Trust vs. ACIT have held that pre-primary education falls within the meaning of "education" under section 2(15) of the Act. 24. As regards the reliance placed by the Ld. CIT(E) on the decision of the Hon'ble Supreme Court in Sole Trustee, Loka Shikshana Trust vs. CIT, we find that the said judgment was delivered in a different context, when the scope of education had not developed as it has today. In view of the later developments, especially the National Education Policy, 2020, the said judgment cannot be applied in a rigid manner to exclude pre-school education. 25. At this stage, it is also relevant to note that even from a historical and cultural perspective in ....
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....disallowance, if warranted, is to be made in those proceedings. Therefore, the alleged violation of section 13, even if assumed, cannot be a valid ground to withhold registration. 30. In the present case, the assessee has contended that the amounts given to related parties were in the nature of repayment of advances received earlier. However, we note that this aspect has not been properly examined by the Ld. CIT(E), nor has adequate opportunity been afforded to the assessee to substantiate its claim with supporting evidences. Be that as it may, such an exercise, in our considered opinion, is not determinative for the purpose of grant of registration. 31. Accordingly, we hold that the Ld. CIT(E) was not justified in refusing registration to the assessee on the ground of alleged violation of section 13 of the Act. The issue as to whether there is any such violation, and the consequential disallowance, if any, shall be examined by the Assessing Officer at the stage of assessment in accordance with law. The assessee shall be at liberty to place all relevant material before the Assessing Officer in support of its claim. 32. In view of the above discussion, we direct the Ld. CIT....