JAIN SOCIAL GROUP ANDHERI CHARITABLE TRUST ,MUMBAI vs. CIT(EXEMPTION), MUMBAI

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ITA 15/MUM/2025Status: DisposedITAT Mumbai14 October 2025Bench: SHRI NARENDRA KUMAR BILLAIYA (Accountant Member), SHRI ANIKESH BANERJEE (Judicial Member)1 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the rejection by the CIT(E) was a breach of the rule of consistency, as the assessee had similar objects and had previously been granted registration under Section 12A and approval under Section 80G.

What were the facts?

The assessee filed an application for registration under Section 80G of the Income Tax Act. The CIT(E) rejected the application citing a violation in the trust deed regarding applying funds outside India.

What were the issues?

Whether the rejection of registration under Section 80G was justified when there was a "breach of the rule of consistency" with prior approvals?

Which sections of the Income-tax Act were involved?

Section 80G,Section 80G(5)(iii),Section 11,Section 12A

AI-generated summary — verify with the full judgment below

Before: SHRI NARENDRA KUMAR BILLAIYA, ACCOUNTANT & SHRI ANIKESH BANERJEE

For Appellant: Shri Niraj Sheth
For Respondent: Shri Vivek Perampurna, CIT DR
Hearing: 09.10.2025Pronounced: 14.10.2025

Date of Hearing 09.10.2025 Date of Pronouncement 14.10.2025 आदेश / O R D E R PER NARENDRA KUMAR BILLAIYA [A.M.] :-

This appeal by the assessee preferred against the order of the CIT(Exemptions), Mumbai dated 19.11.2024 by which the CIT(E) rejected the application for grant of registration u/s. 80G of the Act.

2.

Briefly stating the facts of the case are that the assessee filed an application in Form 10AB u/s. 80G(5)(iii) of the Act seeking approval u/s. 80G of the Act. A.Y. N.A

3.

On verification of the application the CIT(E) found that the trust deed/MOA at point no. 3e of the object of the trust, the assessee intends to apply fund outside India. According to the CIT(E) this is inviolation of section 11 of the Act. The CIT(E) issued a show cause notice to the assessee trust seeking explanation for regarding the above mentioned violation. The assessee vide letter dated 16.10.2024 stated that:

“The trust vide clause 3(e) was meant to provide betterment and incentive assistance to students for further studies, either in India or abroad. Such assistance is given in India by assisting in Indian rupees within India, whether the study is in India or abroad. Nowhere is it mentioned in the Trust deed that assistance will be paid in foreign currency” 4. The assessee further submitted through an affidavit as under:

Resolved that Ramesh Sheth is authorized to inform Income Tax Department that trust has not Remitted any donation in Foreign Currency since its inception and trustees have no intention to remit any donation in Foreign Currency in Future also. For removal of doubt, it is unanimaously agreed by trustees that necessary change in Clause 3(e) may be carried out and word abroad" may be deleted from object clause and to inform office of the Charity Commissioner accordingly in due course.”

5.

The CIT(E) doubted the explanation and rejected the application.

6.

We find that on similar objects the assessee has been granted registration u/s. 12A of the Act and further the assessee got approval u/s. 80G of the Act since 2004. We are of the considered that this is “breach of the rule of consistency” that there are no changes in the material facts nor in the objects of the trust. Therefore while granting registration u/s. 12A, the CIT(E) erred in rejecting the approval u/s. 80G of the Act. We accordingly direct the CIT(E) to grant approval to the assessee. A.Y. N.A

7.

On identical set of facts the co-ordinate bench in the case of World Jain vide order dated 11.03.2025 has held as under:

“3.We find that on similar objects 12A registration has been granted by the CIT(E) which is still in force. Further the assessee has been accorded approval under section 80G of the Act since 2001 and it is only in the impugned AY the approval has been declined.

4.

We are of the considered view that this is breach of the Rule of consistency as there are no changes in the material facts nor in the objects of the Trust, therefore, we direct the CIT(E) to grant approval to the assessee 5. In the result, appeal of the assessee is allowed.”

8.

Respectfully following the decisions of the co-ordinate bench, the appeal is allowed.

9.

In the result, the appeal of the assessee is allowed.

Order Pronounced in Open Court on 14.10.2025

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