DISCOVER EKAM FOUNDATION ,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTION), MUMBAI

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ITA 4429/MUM/2025Status: DisposedITAT Mumbai22 September 2025AY 2025-26Bench: HON’BLE SH SANDEEP GOSAIN, JUDICIAL MEMBER & HON’BLE SH PRABHASH SHANKAR (Accountant 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 since the assessee had filed a revised Memorandum of Association and an affidavit confirming changes in their objects, the matter should be reconsidered by the CIT(E).

What were the facts?

The assessee challenged an order rejecting their application for registration under section 12A/12AB of the Income Tax Act. The rejection was based on the ground that the trust intended to apply funds outside India.

What were the issues?

Whether the CIT(E) erred in rejecting the registration application without providing sufficient opportunity and considering the revised objects and affidavit submitted by the assessee.

Which sections of the Income-tax Act were involved?

Section 250,Section 12A,Section 12AB,Section 12A(1)(AC)&(iii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “D” BENCH, MUMBAI

Before: HON’BLE SH SANDEEP GOSAIN & HON’BLE SH PRABHASH SHANKAR

For Appellant: Shri Vijaykumar S. Biyani
For Respondent: Shri Umashankar Prasad, CIT DR
Hearing: 16.09.2025Pronounced: 22.09.2025

Date of Hearing 16.09.2025 Date of Pronouncement 22.09.2025 ORDER SANDEEP GOSAIN, JUDICIAL MEMBER:

The present appeal has been filed by the assessee challenging the impugned order dt. 24.06.2025 passed under section 250 of the Income Tax Act, 1961 (‘the Act’), by the National Faceless Appeal Centre (NFAC) / CIT(A) for the assessment year 2025-26. The assessee has raised the following grounds:

1.

The Ld. CIT(E) erred in law and on facts in rejecting the application for registration u/s 12A/12AB of the IT Act, 1961. As per the facts of the present case, the application 2. in Form 10AB u/s 12A(1)(AC)&(iii) filed by the assessee Discover Ekam Foundation, Mumbai. seeking registration u/s 12AB of the Act was rejected on the ground that as per the objects of the trust deed, the applicant intends to apply funds outside India.

3.

In this regard, Ld. AR submitted that before rejecting the application, Ld. CIT(E) had not provided sufficient opportunity of being heard to the assessee. The Ld. AR also placed on record copy of affidavit declaring and confirming about the application of funds for promotion of international welfare, and also drawn our attention towards revised copy of Memorandum Of Association along with necessary documents filed with Ministry of Corporate Affairs and submitted that assessee has not violated any of the provisions of the Act. Therefore the application for seeking registration was wrongly rejected.

4.

Whereas on the contrary Ld. DR relied upon the orders passed by the revenue authorities.

5.

Be that as it may, since the assessee has filed detailed affidavit along revised copy of Memorandum Of Association, along with necessary documents filed with Ministry of Corporate Affairs, which goes to show that assessee has revised its objects in their Memorandum Of Association. Therefore in such circumstances, without going into the merits of the case, we are of the view that this matter required reconsideration at the end of Ld. CIT(E), in view of changed circumstances i.e filing of Discover Ekam Foundation, Mumbai. detailed affidavit by the assessee declaring and confirming about the application of funds and also revised copy of Memorandum Of Association, wherein the assessee has already amended their objects thus considering such circumstances, we deem it proper to restore the matter back to the file of Ld. CIT(E) for deciding the same afresh after taking into consideration the documents as discussed by us and also by providing opportunity to the assessee.

6.

Before parting, we make it clear that our decision to restore the matter back to the file of the Ld. CIT(E) shall in no way be construed as having any reflection or expression on the merits of the dispute, which shall be adjudicated by the Ld. CIT(E) independently in accordance with law.

7.

In the result, the appeal filed by the assessee is allowed for statistical purposes.

Order pronounced in the open court on 22/09/2025.

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