Topic
ITAT Delhi held that a community pre-school, despite lacking formal affiliation, meets the s.2(15) definition of charitable education under the Income Tax Act. Hence trusts operating such schools can secure registration under sections 12AB and 80G for tax exemptions. The decision expands eligibility for early-childhood NGOs.
The ITAT Delhi has ruled that an entity pursuing both religious propagation and active charitable work-such as education and medical relief for the underprivileged-cannot be registered solely as a religious body under Section 12AB. This decision ensures that entities fulfilling broader public welfare objectives are not unfairly confined to narrow religious classification, expanding access to tax exemptions for genuinely charitable initiatives.
The ITAT Delhi has ruled that an NGO earning fees for delivering environmental curricula to schools remains eligible for charitable registration under the fifth limb of Section 2(15), as long as its primary objective is public benefit, not profit. This clarifies that commercial receipts alone do not disqualify charitable status - a critical precedent for education and environmental nonprofits relying on sustainable funding models.
ITAT Hyderabad rules that Section 12AB(4) of the Income Tax Act cannot be applied retrospectively to cancel charitable registration for prior assessment years. The tribunal emphasized judicial discipline, holding that lower authorities must follow higher judicial decisions even if they disagree, and cannot revisit settled issues without explicit legislative intent.