DR A P J ABDUL KALAM SUPER 30 TRUST ,LATUR V. CIT-EXEMPTION, PUNE , PUNE

ITA 1199/PUN/2024

AI Insights

The case involves the Dr. A. P. J. Abdul Kalam Super 30 Trust, which appealed against the decisions of the CIT, Exemption, Pune, rejecting its applications for registration under section 12A(1)(ac)(iii) and for approval under section 80G(5) of the IT Act. The CIT, Exemption, Pune had found the trust's activities to be commercially oriented, lacking in genuine charitable purpose, and not compliant with statutory requirements under the Maharashtra Public Trust Act, 1950. The Tribunal, considering the trust's request for another opportunity to provide necessary details, remanded the case back to the CIT for a fresh decision.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 840022 (ITAT-PUNE)
• Duration Of Justice: 1 year(s) 9 month(s) 1 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 24-05-2024
• Laws Referred To: Income Tax Act, Maharashtra Public Trust Act, 1950
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: CHANDRA VIJAY
• Assessee Lawyers: KISHOR B. PHADKE
• Section: 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “A”, PUNE BEFORE SHRI R. K. PANDA, VICE PRESIDENT AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.1198 & 1199/PUN/2024 Dr. A. P. J. Abdul Kalam Super 30 Trust, 110, C/o S. V. Lasune, Shri Nagar, Shelhal Road, Udgir, Latur- 413517. PAN : AADTD2626C Vs. CIT, Exemption, Pune. Appellant Respondent आदेश / ORDER PER VINAY BHAMORE, JM: Both the above captioned appeals filed by the assessee are directed against the separate orders dated 28.03.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration in Form No.10AB under clause (iii) of section 12A(1)(ac) of the IT Act filed on 26.09.2023 and denying the application for approval in Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the IT Act filed on 30.09.2023. Assessee by : Shri Kishor B. Phadke Revenue by : Shri Chandra Vijay Date of hearing : 11.02.2026 Date of pronouncement : 25.02.2026 Printed from counselvise.com ITA Nos.1198 & 1199/PUN/2024 2 ITA No.1199/PUN/2024 : 2. Facts of the case, in brief, are that the assessee is a trust applied for registration in Form 10AB u/s 12A(1)(ac)(iii) of the IT Act on 26.09.2023. With a view to verify the genuineness of activities of the assessee and compliance to requirements of any other law for the time being in force by the trust/institution as are material for the purpose of achieving its objects, notices were issued by Ld, CIT, Exemption, Pune through ITBA portal requesting the assessee to upload certain information/clarification. In reply to the said notices, the desired information was furnished by the assessee. However, not being satisfied with the above reply, Ld. CIT, Exemption, Pune rejected the application filed by the assessee by observing as under :- “6. The assessee has responded to the said notice on 28/02/2024. The assessee furnished a note on activity that was submitted in the earlier compliance. Said note does not contain specific details of each activity like date/place of each activity, details of beneficiaries, how they were identified, details of teachers/ experts who rendered services etc. Only general narrations like starting school and colleges in rural and urban areas, starting hostel cum school etc have been mentioned in the note which does not throw light on the activities actually carried out. The assessee has furnished few pamphlets of camps organized by it and some bills/invoices of expenditure. On verification of the pamphlets it is seen that they are for publicity of the coaching classes for preparation of various examinations like NEET, AIIMS, IIT, JEE, MHT-CET after 12th. There is no mention of the assessee trust and the name has been mentioned as 'Dr. APJ Abdul Kalam Super 30 & Medical-IIT Institute'. It is actually an invitation to parents to make their dream of making their child doctor/ engineer. Though the trust contended that there is neither any compulsion for the students to pay any fees nor any fixed fees structure is prescribed Printed from counselvise.com ITA Nos.1198 & 1199/PUN/2024 3 for students and that fees are voluntarily paid by the parents to support this charitable activities, in practice, in one of the advertisements, there is a mention about 'Free online Demo Class' and about following Kota, Hyderabad pattern. Even in photographs of venue where the event was organized does not bear name of the trust but the name as institute. Except for a list of some children, no other details of the participant students like their application, fees receipts, etc have been furnished. It is thus noticed that the trust has been engaged in a purely commercially activity of running a coaching centre for students preparing for various examinations like NEET, AIIMS, IIT, JEE, MHT-CET after 12th. Though the assessee has contended that its activity is not of a commercial nature, the above discussion and the functioning of the institute proves that the activities are of commercial nature with an elemen of profits involved in it. 7. The assessee was further requested to furnish nature and purpose of the same and its utilisation for trust objects along with copy of permission under section 36A of the Maharashtra Public Trust Act, 1950 from the Charity Commissioner. In reply, the assessee contended that permission from the Charity Commissioner under section 35 was not taken. Section 36A(3) of the BPT Act, 1950 provides that no trustee shall borrow moneys (whether by way of mortgage or otherwise) for the purpose of or on behalf of the trust of which he is a trustee, except with the previous sanction of the Charity Commissioner, and subject to such conditions and limitations as may be imposed by him in the interest or protection of the trust.\" Thus, said provision mandates the trust to obtain previous sanction from Charity Commissioner in respect of any loan. The assessee, however, has failed to comply with the statutory requirement. 8. Considering the above, the undersigned is not satisfied about the charitable nature and the genuineness of activities of the assessee and compliance of requirements of any other law for the time being in force by the assessee as are material for the purpose of achieving its objects. 9. In view of the above, the application filed by the assessee is hereby rejected and the provisional registration granted on 24/10/2022 under section 12AB read with section 12A(1)(ac) (vi) of the Income Tax Act, 1961 is hereby cancelled.” 3. It is the above order against which the assessee is in appeal before this Tribunal. Printed from counselvise.com ITA Nos.1198 & 1199/PUN/2024 4 4. We have heard Ld. Counsels from both the sides and perused the material available on record including the paper book as well as copy of case laws furnished by the assessee. In this regard, we find that Ld. CIT, Exemption, Pune has rejected the application for registration on various grounds since according to Ld. CIT, Exemption, Pune the reply and information furnished by the assessee was not appropriate and complete and therefore Ld. CIT, Exemption, Pune was not satisfied about the charitable nature and the genuineness of activities of the assessee and compliance of requirements of any other law for the time being in force by the assessee as are material for the purpose of achieving of its objects. In this regard, it was the sole contention and prayer of Ld. Counsel of the assessee that if one last opportunity is provided to the assessee, he is in a position to furnish all the relevant desired information in support of application for registration u/s 12AB of the IT Act before Ld. CIT, Exemption, Pune. 5. Considering the totality of the facts of the case and in the interest of justice and without going into merits of the case, we deem it appropriate to set-aside the order passed by Ld. CIT, Exemption, Pune and restore the matter back to his file with a direction to decide the application for registration afresh and as per Printed from counselvise.com ITA Nos.1198 & 1199/PUN/2024 5 fact & law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to respond to the notices issued by Ld. CIT, Exemption, Pune in this regard and to produce relevant documents/evidences, if any, in support of application for registration u/s 12AB of the IT Act without taking any adjournment under any pretext, otherwise Ld. CIT, Exemption, Pune shall be at liberty to pass appropriate order as per law. Thus, the grounds raised by the assessee are allowed for statistical purposes. 6. In the result, the appeal filed by the assessee in ITA No.1199/PUN/2024 is allowed for statistical purposes. ITA No.1198/PUN/2024 : 7. The instant appeal is against the order passed by Ld. CIT, Exemption, Pune denying grant of approval u/s 80G(5) of the IT Act. Since we have remanded the issue of grant of registration u/s 12A(1)(ac)(iii) to the file of Ld. CIT, Exemption, Pune for de novo adjudication, therefore, in the interest of justice, it would be appropriate to remit the issue of grant of approval u/s 80G(5) as well to the file of Ld. CIT, Exemption, Pune being consequential, for de novo adjudication. Printed from counselvise.com ITA Nos.1198 & 1199/PUN/2024 6 8. In the result, the appeal filed by the assessee in ITA No.1198/PUN/2024 is allowed for statistical purposes. 9. To sum up, both the above captioned appeals filed by the assessee are allowed for statistical purposes. Order pronounced on this 25th day of February, 2026. Sd/- Sd/- (R. K. PANDA) (VINAY BHAMORE) VICE PRESIDENT JUDICIAL MEMBER पुणे / Pune; ᳰदनांक / Dated : 25th February, 2026. Sujeet/DOC आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to : 1. अपीलाथᱮ / The Appellant. 2. ᮧ᭜यथᱮ / The Respondent. 3. The CIT, Exemption, Pune. 4. The Pr. CIT/CIT concerned. 5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “A” बᱶच, पुणे / DR, ITAT, “A” Bench, Pune. 6. गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER, // True Copy // Assistant Registrar आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune. Printed from counselvise.com "