RAINBOW SOCIAL & EDUCATIONAL TRUST,NEW DELHI V. CIT (EXEMPTION), NEW DEHI

ITA 119/DEL/2025

AI Insights

Rainbow Social & Educational Trust appealed against the decision of the Commissioner of Income Tax (Exemption), which denied their registration under section 12A of the Income-tax Act, 1961, categorizing them as an educational institution. The trust argued that there is no mandatory requirement for a school to be affiliated with CBSE or the Directorate of Education to qualify for such registration. The ITAT referenced a similar case, Delhi Music Society vs. Director General of Income-tax, where the Delhi High Court had ruled that the lack of formal recognition by a university or board does not preclude an institution from being considered educational under section 10(23C)(vi).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 789370 (ITAT-DELHI)
• Duration Of Justice: 10 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-11-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 06-01-2025
• Other Referred Cases: Delhi Music Society vs. Director General of Income-tax (2013) 357 ITR 265 (Delhi)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JITENDER SINGH
• Assessee Lawyers: RUCHESH SINHA
• Section: 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘A’: NEW DELHI BEFORE SHRI S.RIFAUR RAHMAN, ACCOUNTANT MEMBER and SHRI ANUBHAV SHARMA, JUDICIAL MEMBER ITA No.119/DEL/2025 (Assessment Year: 2024-25) Rainbow Social & Educational Trust, vs. CIT (Exemption), E – 105, Shaheen Bagh, Jamia Nagar, Delhi. New Friends Colony, New Delhi – 110 025. (PAN : AAETR6037J) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri Ruchesh Sinha, Advocate Ms. Monalisa Maity, Advocate REVENUE BY : Shri Jitender Singh, CIT DR Date of Hearing : 03.09.2025 Date of Order : 26.11.2025 O R D E R PER S. RIFAUR RAHMAN, ACCOUNTANT MEMBER : 1. The assessee has filed appeal against the order of the Learned Commissioner of Income Tax (Exemption), Delhi [“Ld. CIT(E)”, for short] dated 06.12.2024 for the AY 2024-25. 2. At the time of hearing, ld. AR of the assessee brought to our notice the relevant facts, the applicant/assessee, M/s. Rainbow Social & Educational Trust is incorporated on 08.03.2022 and the assessee has obtained provisional registration vide CPC order dated 12.05.2022. Further the assessee filed an Printed from counselvise.com 2 ITA No.119/DEL/2025 application on 26.06.2024 in Form 10AB for regular registration u/s 12A(1)(ac) (iii) of the Income-tax act, 1961 (for short ‘the Act’) and the main objects of the applicant society are relief to the poor, education and also submitted copy of Trust Deed in this regard. During the proceedings, the assessee was issued questionnaire dated 05.07.2024 with a request to furnish certain details/documents/clarifications in support of its claim of registration. In response, the assessee filed the details. Further the assessee was asked for pending details as well as additional details, which the assessee filed. He submitted that the ld. CIT (E) observed that the assessee has filed part details. Ld. CIT (E) further observed that assessee is running a primary school for students upto VIth class in the name of Bright Pathways Global School at E- 105, Shaheen Bagh, New Delhi. He submitted that ld. CIT (E) further observed that benefits are available u/s 12A or 10(23C) of the Act for educational institutions which are approved by the State Government Board of Central Government Board and the assessee trust has failed to prove the approval letter for running a primary school from Directorate of Education, Delhi. Accordingly, ld. CIT (E) held that the assessee trust is not eligible for registration u/s 12A under the category of Education. 3. Further, ld. AR submitted that against the order of the ld. CIT (E), assessee is in appeal before the ITAT solely on the issue that there is no mandatory requirement to have affiliation of the school from CBSE or Directorate of Education. In this regard, ld. AR submitted that assessee is running a primary school and the assessee was not entitled to be characterised as an educational Printed from counselvise.com 3 ITA No.119/DEL/2025 institution. In this regard, he relied on the decision of Hon’ble jurisdictional High Court in the case of Delhi Music Society vs. Director General of Income- tax (2013) 357 ITR 265 (Delhi). 4. On the other hand, ld. DR of the Revenue relied on the findings of the ld. CIT(E). 5. Considered the rival submissions and material placed on record. We observe that this issue is squarely covered by the decision of Hon’ble Delhi High Court in the case of Delhi Music Society (supra) wherein the Hon’ble High Court held as under :- “Section 10(23C) of the Income-tax Act, 1961 - Educational institutions - Assessment year 2010-2011 - Petitioner-society was engaged in teaching all forms of music and dance with no profit motive - As its gross receipts exceeded Rs. 1 crore, it moved an application under section 10(23C){vi) before prescribed authority for grant of approval as an educational institution - Whether since assessee was being run like a school or educational institution in a systematic manner with regular classes, vacations, attendance requirements, enforcement of discipline and so on, it was to be held that it was imparting 'education' - Held, yes - Whether fact that petitioner-society was not recognized by any university or Board or fact that it was not awarding its own degrees or certificates was of no relevance for deciding an application under section 10(23C)(vi) - Held, yes - Whether, therefore, petitioner met requirements of being an 'educational institution' within meaning of section 10(23C)(vi) and could not be denied approval under said section - Held, yes” “…. 19. For the above reasons, we are satisfied that the petitioner meets the requirements of an educational institution within the meaning of Section 10(23)(c)(vi) of the Act. The prescribed authority, in our view, has not taken into consideration the relevant factors in coming to the conclusion that the petitioner is not entitled to the approval as \"educational institution\". His understanding of Printed from counselvise.com 4 ITA No.119/DEL/2025 the judgment of the Supreme Court in the case of Sole Trustee, Loka Shikshana Trust (supra) seems to us to be flawed. It also appears to us that the prescribed authority has not examined and appreciated properly the nature of activities of the petitioner-school and the rules and regulations governing those activities. 20. We accordingly, quash the order dated 27th September, 2010 passed by the prescribed authority. The prescribed authority will now deal with the assessee's application for approval afresh in accordance with law in the light of the observations made by us above. The writ petition is accordingly allowed with no order as to costs.” 6. Respectfully following the same, we quash the impugned order and the direct the ld. CIT (E) to deal with the assessee’s application for approval fresh in accordance with law in the light of the observations made in the aforesaid judgment of Hon’ble jurisdictional High Court. 7. In the result, the appeal filed by the assessee is allowed as indicated above. Order pronounced in the open court on this 26th day November, 2025. Sd/- sd/- (ANUBHAV SHARMA) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 26.11.2025 TS Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals). 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com "