RSP LEARNING FOUNDATION,DELHI V. CIT EXMENPTION DELHI, DELHI

ITA 348/DEL/2025

AI Insights

The case involves RSP Learning Foundation, which appealed against the decision of the CIT (Exemption), Delhi, denying them approval for tax exemption under section 80G(5)(iii) for the Assessment Year 2024-25. The foundation had entered into a contract with Andhra Pradesh Mineral Development Corporation (APMDC) to provide teaching staff to a government school, receiving a monthly payment for this service. The CIT (E) concluded that this arrangement was commercial and not charitable, thus not meeting the criteria for tax exemption under the specified section of the Income Tax Act. The Tribunal, after hearing the Department's representative and reviewing the materials, upheld the CIT (E)'s decision, agreeing that the foundation's activities were commercial in nature.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 774105 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-09-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: B
• Assessment Year: 2024-2025
• Appeal Filed On: 21-01-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL

Judgement Text

"1 ITA No. 348/Del/2025 IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH “B”: NEW DELHI BEFORE Ms. MADHUMITA ROY, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No. 348/DEL/2025 Assessment Year: 2024-25 RSP Learning Foundation, A-83, 1st Floor, Vivek Vihar, Phase-2, Delhi-110095. PAN: AAJCR 7938 N Vs CIT (Exemption), Delhi APPELLANT RESPONDENT Assessee represented by None Department represented by Ms. Pooja Swaroop, CIT(DR) Date of hearing 08.09.2025 Date of pronouncement 08.09.2025 O R D E R PER Ms. MADHUMITA ROY, JM: The instant appeal, preferred by the assessee, is directed against the order dated 21.11.2024 [DIN & Notice No. ITBA/EXM/F/EXM45/2024- 25/1070664712(1) passed by the CIT(exemption), Delhi under Clause (ii)(b)(B) of second proviso to section 80G(5) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) for the Assessment Year 2024-25. 2. None appeared on behalf of the assessee at the hearing. We proceed to dispose of the appeal, ex parte, qua the assessee. We have heard learned DR and perused the material available on record. Printed from counselvise.com 2 ITA No. 348/Del/2025 3. It is seen that the learned CIT(E) in his elaborate order has observed that the applicant has got work order from Andhra Pradesh Mineral Development Corporation (APMDC) for providing 5 teaching staffs to Govt. Higher Secondary School, Majhaulpath with a monthly payment of Rs. 1,65,000/- to the applicant. The applicant has provided teaching staff to the school and paid monthly remuneration to these teachers which has been claimed as expenses. The learned CIT(E) has categorically observed that the payment made by APMDC is not a CSR fund or any type of donation and is only contract/agreement between RSP Learning Foundation and APMDC on a consideration of payment. The learned CIT(E) held the activities of applicant as commercial in nature and do not come under charitable activities and failed to satisfy the genuineness of activities as per section 2(15) of the Act. He, accordingly, rejected applicant’s application filed in Form 10AB for grant of approval u/s 80G(5)(iii). No documentary evidence, if any, has been filed by the appellant in support of its claim so as to take a contrary view in the matter. Accordingly, order of learned CIT(E) is upheld. 4. In the result, assessee’s appeal in ITA No. 348/DEL/2025 is dismissed. Order pronounced in open court on 08.09.2025. Sd/- Sd/- (NAVEEN CHANDRA) (MS. MADHUMITA ROY) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 09.09.2025. *MP* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(Appeals) 5. DR: ITAT ASSISTANT REGISTRAR ITAT, NEW DELHI Printed from counselvise.com 3 ITA No. 348/Del/2025 Printed from counselvise.com "