2026 (5) TMI 689

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....026. 2. Since identical facts and issues are involved in both these appeals, these appeals were heard together and disposed of by this common order. For the sake of clarity and convenience the facts relevant in the ITA No.1874/CHNY/2026 for the Assessment Year 2026-27 are stated herein: 3. The Assessee in ITA No.1874/CHNY/2026 raised the following grounds of appeal : "1. The order of the Ld. CIT (Exemption) is erroneous under the 1 facts of the case and law, as well. 2. The Ld. CIT (Exemption) had erroneously invoked the proviso to section 2(15) of the Income tax Act 1961. 3. The Ld. CIT (Exemption) had erred in denying the registration under sec 12AB of the Income tax Act 1961. 4. The Ld. CIT (Exem....

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....rovisions of 12AB of the Act. 5. On receipt of the said application, the ld.CIT(E)-Chennai had called for certain information. In response to the said notices, the appellant had filed information filed a detailed explanation on consideration of the explanation filed by the appellant, the ld.Commissioner had come to conclusion that the activities of the trust are not in the nature of providing education placing reliance on the decision of Hon'ble Supreme Court in the case of sole trustee, Lokashikshana Trust vs. CIT [1975] 101 ITR 234 and further observed that for the last preceding three financial years, the appellant trust had not received any voluntary contribution. Based on these conclusions reached by the ld.Commissioner, he inferred....

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....appeal is whether the ld.CIT(E) was justified in not granting the registration u/s. 12AB of the Income Tax Act. On mere perusal of the impugned order, it would be evident that the ld.Commissioner had concluded that the activities of the appellant trust are not in the nature of education as it is not engaged in systematic instruction schooling and training given to young in preparation for the work of life. Even if the activities of the trust does not fall within the ambit of education, undoubtedly it falls under general public utility services and mere receipt of the nominal fee to recover the expenses does not amount to commercial activity as held by the following decisions : * Institute of Chartered Accountants of India Vs. DGIT(....