NASSD ASSOCIATION OF SKILL AND SOCIAL DEVELOPMENT,CHENNAI V. CIT, EXEMPTIONS, CHENNAI

ITA 973/CHNY/2025

AI Insights

The case involves Nassd Association of Skill and Social Development, a company registered under section 8 of the Companies Act, 2013, which sought registration under section 12AB of the Income Tax Act, 1961. The CIT (Exemptions) rejected their application on the grounds that the organization was not engaged in charitable activities, as evidenced by the income generated from various operational activities and the profits earned from a skill development program in collaboration with Leeds Skill Training Centre Private Limited. The Tribunal's decision affirmed the CIT(E)'s rejection, emphasizing that the organization did not meet the statutory requirements for charitable activities under the Income Tax Act.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 773042 (ITAT-CHENNAI)
• Duration Of Justice: 5 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-09-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Assessment Year: misc
• Appeal Filed On: 03-04-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BIPIN; C.N
• Assessee Lawyers: N. ARJUN RAJ
• Keywords: Charitable institution

Judgement Text

" आयकर अपीलीय अिधकरण, ‘सीʼ \u0011ा यपीठ, चे\u0016ई IN THE INCOME TAX APPELLATE TRIBUNAL ‘C’ BENCH, CHENNAI \u0018ी मनु क ुमा र िग र, \u0011ा ियक सद एवं \u0018ी एस. आर. रघुना था , लेखा सद क े सम' BEFORE SHRI MANU KUMAR GIRI, JUDICIAL MEMBER AND SHRI S. R. RAGHUNATHA, ACCOUNTANT MEMBER आयकर अपील सं./ITA No.: 973/Chny/2025 िनधा (रण वष( / Assessment Year: - Nassd Association of Skill and Social Development, No. 1, K30c/6, 1st Main Road, Anna Nagar, Chennai - 600 102. Tamil Nadu. vs. CIT (Exemptions) Chennai. [PAN: AAICN-6965-G] (अपीला थ+/Appellant) (,-थ+/Respondent) अपीला थ+ की ओर से/Appellant by : Mr. N. Arjun Raj, Advocate ,-थ+ की ओर से/Respondent by : Mr. Bipin, C.N, CIT सुनवाई की तारीख/Date of Hearing : 28.07.2025 घोषणा की तारीख/Date of Pronouncement : 22.09.2025 आदेश /O R D E R PER S. R. RAGHUNATHA, AM : This appeal is filed by the assessee against the order dated 28.01.2025 passed by the Commissioner of Income Tax(Exemptions) (hereinafter referred to as “CIT(E”), rejecting the approval for registration u/s.12AB, filed in terms of section 12A(1)(ac)(iii) of the Income Tax Act, 1961 (hereinafter referred to as the “Act”). 2. The assessee is a company registered on 06.01.2023 u/s.8 of the Companies Act, 2013 and it filed an application dated 20.07.2024 in Form 10AB, seeking registration u/s.12AB of the Act. The Ld.CIT(E) rejected the said application dated 20.07.2024 on the ground that the assessee is not engaged in any charitable activities and has not substantiated its nature of activities as Printed from counselvise.com 2 ITA No.973/Chny/2025 charitable. Aggrieved by the order passed by the ld.CIT(E), the assessee is in appeal before us. 3. The ld.CIT(E), pursuant to the application made by the assessee, for the approval of registration u/s.12AB called for the various records, including the memorandum of association, articles of association and its financial statements. The ld.CIT(E) carried out an analysis of the financial statements and held that the assessee is not carrying out any charitable activities and rejected the approval sought for registration u/s.12AB of the Act. 4. The case of the ld.CIT(E) is as follows: The income from operations earned by the assessee was Rs.12,992/-, which arises from assessment fees, Authorised Training Centre Affiliation, Consultancy Fee, Empanelment fees, SMART BSDC Online fees, SSC Assessment Fees and Welfare Scheme Assistance. These heads of income point out that the assessee is not engaged in charitable purpose. Further, the assessee collaborates with Leeds Skill Training Centre Private Limited and had conducted skill development program for 100 urban youth who are below poverty line and earned a surplus of Rs.4,77,200/- and Rs.1,57,100/- for year ending March, 2023 and 2024 respectively. Since the assessee had earned profit, it ceases to exist as a charitable organization. Further, the objects of relief of the poor, environmental protection and education are not to be seen from the financial statements and hence the approval was rejected. Further, the ld.CIT(E) held that the more than 20% of its income is applied for the purposes specified above and hence registration could not be granted. 5. Before the ld.CIT(E), the assessee contended that at the time of grant of registration, the only two conditions that could be verified by the ld.CIT(E), as per section 12AB are (a) the genuineness of activities of the trust or institution and (b) the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects. The ld.CIT(E) is not bound to make an enquiry akin to assessment, Printed from counselvise.com "