The Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has held that trust imparting education, cannot be denied Registration under Section 12AB of the Income Tax Act for favoring Marwari Students.
The bench of Anikesh Banerjee (Judicial Member) and Vikram Singh Yadav (Accountant Member) has observed that the trust deed merely provides discretion to give preference to deserving Hindi-speaking or Marwari students. This does not amount to restriction for the benefit of a particular religious community or caste under section 13(1)(b). Marwari is not a religion but an ethnolinguistic/regional group, and the data on record shows that scholarships and admissions are widely given to students of varied religions and communities. The activities of developmental programs, workshops, seminars, webinars etc. are also an extension of the main activity of ‘education’ or at best activities in the nature of general public utility and cannot be read in isolation thereof.
The appellant/assessee, Aditya Birla Education Trust is a charitable trust carrying out educational activities by running a school of Cambridge curriculum as also a school for disabled children. Apart from this, the trust is also undertaking various other activities including spreading awareness of mental health, menstrual health care and allied activities. The trust activities encompass six verticals as elucidated in its letter to CIT(E) dated June 25, 2025, as also set out in its Impact Report – 2024-25.
The trust was formed on January 16, 2009. It had obtained a certificate u/s. 12AA of the Act on November 11, 2009. The said trust deed was modified in 2013 and the same was approved by the Charity Commissioner on September 07, 2013. Pursuant to the change in the Income Tax Act, the trust applied for re-registration u/s. 12A(1)(ac)(i) on April 22, 2021. The registration in respect thereof was granted for a period of five years up to AY 2026-27 as per order of the DIT dated May 28, 2021.
On January 28, 2022, the Trustees of the trust passed a resolution for modification of the trust deed mainly with a view to clearly provide for specific objects relating to medical relief. The activities of medical relief were being carried out hitherto under the omnibus object of general public utility in the original trust deed. The revised trust deed was approved the Charity Commissioner on September 02, 2024.
The assessee made an application before the CIT(E) for approval of the modified objects as required u/s. 12A(1)(ac)(v) on December 24, 2024. The CIT(E) has by order dated June 30, 2025, being the impugned order, rejected the application of the assessee and has held that “grant of registration stands rejected”. Being aggrieved the appeal is filed by the assessee challenging such rejection of grant of registration.
The tribunal held that the rejection of the assessee’s application for modification of objects and the consequential denial of registration under section 12AB is unjustified and bad in law. The impugned order of the CIT(E) is hereby set aside. The CIT(E) is directed to grant approval to the modification of the objects and continue the registration under section 12AB of the Income Tax Act, subject to verification of procedural compliance.
Case Details
Case Title: Aditya Birla Education Trust Versus Commissioner of Income-tax (Exemption)
Case No.: I.T.A No.4474/Mum/2025
Date: 19/09/2025
Counsel For Appellant: Saurabh Soparkar
Counsel For Respondent: Rajesh Kumar Yadav
