SAMEER DESAI FOUNDATION ,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), MUMBAI
| आयकर अपीलीय अिधकरण ायपीठ, मुंबई |
IN THE INCOME TAX APPELLATE TRIBUNAL
“F” BENCH, MUMBAI
BEFORE SHRI SAKTIJIT DEY, HON’BLE VICE PRESIDENT
&
SHRI NARENDRA KUMAR BILLAIYA, HON’BLE ACCOUNTANT MEMBER
I.T.A. No. 4509 & 4508/Mum/2025
Sameer Desai Foundation
1802, Rustomjee O-Zone 6
Behind Telephone Exchange
Goregaon West
Motilal Nagar
Mumbai - 400104
[PAN: ABNCS4747B]
Vs
Commissioner of Income tax (Exemptions)
अपीलाथ/ (Appellant)
यथ/ (Respondent)
Assessee by: Shri Dharan Gandhi (virtually appeared) a/w Vinita Nara A/Rs
Revenue by:
Shri Vivek Perampurna, CIT D/R
(virtually appeared)
सुनवाई की तारीख/Date of Hearing : 15/10/2025
घोषणा की तारीख /Date of Pronouncement : 24/10/2025
आदेश/O R D E R
PER NARENDRA KUMAR BILLAIYA, AM:
I.T.A. No. 4509 & 4508/Mum/2025 are two separate appeals preferred against two separate orders of ld. CIT(E), Mumbai
[hereinafter ld. CIT(E)], dated 28/06/2025, by which the ld. CIT(E) has rejected the application for grant of registration u/s 12A of the Act and approval u/s 80G of the Act.
2. Briefly stated the facts of the case are that the assessee filed an application in form 10AB u/s 12A(1)(ac)(iii) of the Act seeking registration u/s 12AB of the Act. The application was accompanied with necessary documents as per the relevant provisions of the Act and on verification of the application in form 10AB filed by the assessee, the ld. CIT(E), observed that point no. 3(b)(iii) of the objects are in violation of provisions of Section 11 of the Act as the trust intends to I.T.A. No. 1560/Mum/2025
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apply/receive funds outside India. The ld. CIT(E) was of the opinion that the application seeking registration u/s 12AB of the Act is in violation of the relevant provisions of the Act and rejected the same.
Since the application seeking registration u/s 12AB of the Act was rejected, the ld. CIT(E) further rejected the approval u/s 80G of the Act.
3. Having heard the rival contentions, we have carefully perused the orders of the ld. CIT(E). We are of the considered view that the object clause simply provides that "to enter into any arrangements with any Government(s), local or international authorities whether Central,
State, municipal, local or any other person, that may seem conducive to the objects of the Company.” cannot be considered as objectionable to reject the application for registration u/s 12AB of the Act. On similar set of facts, the Hon’ble Delhi high Court in the case of M.K. Nambyar
Saarf Law Charitable Trust vs. Union of India [2004] 269 ITR 556 (Delhi), has held as under:-
“3. So far as the benefit of section 11(1)(a) is concerned, it can be extended only to the extent to which such income is applied to such purposes in India. However, if the income is applied to the purposes outside India, then clause (c) will be applicable and if the permission is granted by the Board either by general or special order then, benefit can be extended. Section 12AA prescribes the procedure for registration.
Reading the section, it becomes clear that after the application is made, the officer has to call for documents or information from the Trust to satisfy himself about the genuineness of the activities of the Trust. He can make further enquiry as he may deem necessary. It is only after satisfying himself about the objects of the Trust and the genuineness of its activities that he has to pass an order in writing registering the Trust or institution. And if he is not satisfied, he can reject the same. This section does not refer to the activities in India or outside India. It refers to application of income for charitable or religious purposes in India as also with direction or order of the Board for application of income as aforesaid outside India. Reading the order dated 24-2-2004, it is very clear that there is non-application of mind. It was necessary for the Commissioner to examine the purpose for satisfying himself that the activities are genuine. It was open for him to make necessary enquiries in this behalf and to pass an order as per the procedure laid down under section 12AA of the said Act. So far as income which is applied outside India is concerned, is not a relevant criteria for rejecting the application. In absence of order under section 11(1)(a)(c), one cannot seek benefit for application of income for charitable or religious purposes, outside India.
I.T.A. No. 1560/Mum/2025
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Therefore, the order dated 24-2-2004 made by the Director of Income-tax
(Exemptions), Annexed at page 32 which is based on irrelevant criteria is quashed and set aside with a direction to consider the application strictly in accordance with law. It is made that even application under section 80G is required to be considered afresh. It is directed that the application shall be disposed of within a period of four weeks by the Commissioner.”
Respectfully following the decision of the Hon’ble Delhi High Court (supra), we direct the ld. CIT(E) to grant registration u/s 12AB of the Act. Before parting, it would be pertinent to mention that the alleged objectionable clause has been amended by the Trust as brought to our notice at the time of hearing of the appeal by the ld. Counsel. 5. Insofar as, the approval u/s 80G of the Act is concerned, since the same was denied because the registration u/s 12AB of the Act was rejected and as we have directed the ld. CIT(E) to grant registration u/s 12AB of the Act, we direct the ld. CIT(E) to consider the application of the assessee for approval u/s 80G of the Act afresh, as per the relevant provisions of the law and after affording a reasonable and adequate opportunity of being heard to the assessee. 6. In the result, I.T.A. No. 4509/Mum/2025 is allowed and I.T.A. No. 4508/Mum/2025 is allowed for statistical purposes. Order pronounced in the Court on 24th October, 2025 at Mumbai. (SAKTIJIT DEY) ACCOUNTANT MEMBER
Mumbai, Dated 24/10/2025
*SC SrPs
*SC SrPs
*SC SrPs
*SC SrPs
I.T.A. No. 1560/Mum/2025
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आदेश की ितिलिप अेिषत/Copy of the Order forwarded to :
अपीलाथ / The Appellant 2. थ / The Respondent 3. संबंिधत आयकर आयु" / Concerned Pr. CIT 4. आयकर आयु")अपील (/ The CIT(A)- 5. िवभागीय ितिनिध ,आयकर अपीलीय अिधकरण, मुंबई /DR,ITAT, Mumbai, 6. गाड& फाई/ Guard file.
आदेशानुसार/ BY ORDER