C R Dadhich Memorial Society vs CIT(E), Chandigarh: Skill Development Training as Charitable Activity

C R Dadhich Memorial Society vs CIT(E), Chandigarh: Skill Development Training as Charitable Activity

Case Number: ITA 6281/Del/2019

Appellant: C R Dadhich Memorial Society, Fatehabad

Respondent: CIT(E), Chandigarh

This appeal was filed by C R Dadhich Memorial Society against the order of the CIT (Exemption), Chandigarh, which denied their application for registration under section 12AA of the Income Tax Act. The primary issue was whether the society’s activities, specifically in skill development training, qualify as charitable under the Act.

The society, established under the Haryana Registration and Regulation of Societies Act, 2012, aims to provide efficient services to the nation, including running teacher training institutions and skill development centers under the Pradhan Mantri Kaushal Vikas Yojana (PMKVY). Despite a previous rejection, the society reapplied, asserting that their activities meet the criteria of charitable activities as outlined in section 2(15) of the Income Tax Act.

The Income Tax Appellate Tribunal (ITAT) in Delhi, led by Dr. B. R. R. Kumar and Shri Yogesh Kumar Us, held that skill development is integral to education and development, aligning with the objectives of public charity. They cited multiple precedents where similar activities were recognized as educational under charitable definitions. Consequently, the tribunal directed the CIT(E) to grant the society registration under section 12AA, affirming the charitable nature of their activities.

The decision emphasizes the importance of skill development initiatives as essential educational activities, contributing to public welfare and qualifying as charitable under the law. This ruling sets a significant precedent for other organizations engaged in similar activities, highlighting the broad interpretation of education and charity in the context of modern societal needs.

C R Dadhich Memorial Society vs CIT(E), Chandigarh: Skill Development Training as Charitable Activity