SATBHAV CHARITABLE FOUNDATION,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTIONS), MUMBAI, MUMBAI

PER PAWAN SINGH, JUDICIAL MEMBER:

ld. Commissioner of Income Tax (Exemption), Mumbai, [for short

“Ld.CIT(E)”] dated 27.09.2025, in rejecting the application for registration

of trust under Section 12AB and approval of fund under Section 80G(5).

The facts in both the appeals are common and the grounds raised in both

the appeals are inter-connected. Therefore, with the consent of parties,

both the appeals are clubbed, heard together and are decided by way of

common order. For appreciation of facts, facts in ITA No. 7279/Mum/2025

are treated as a lead case. The assessee has raised following grounds of

appeal “1. The Learned Commissioner of Income Tax (Exemption), Mumbai [in short Ld. CIT(Exemption)] erred in rejecting application for seeking registration under section 12AB of the Act.

perused. The Learned Authorised Representative (‘Ld. AR’) of the assessee

submits that, the application for registration of the assessee’s trust under

Section 12AB was rejected by Ld.CIT(E) by taking view that one of the

objects of the assessee is to apply/receive funds outside India. The

assessee has now amended their objects/Memorandum of Association

(‘MOA’) in deleting such objects for application/receiving funds outside

India. Otherwise, the assessee has not applied any funds outside India

since its inception. The other objects and activities of the assessee is not

disputed by Ld.CIT(E). There are decisions of various High Courts and

Tribunal holding that, application of the funds outside India is not a

relevant criterion for rejecting the application. Thus, the assessee is eligible

for registration.

approval of funds under Section 80G(5), the Ld. AR submits that once the application for registration under Section 12AB for rejected, the other

application which is consequential was also rejected. Thus, both the appeal

of the assessee may be allowed. � Dedhia Music Foundation v. CIT (E). In ITA No. 743 & 744/Mum/2025 - 02.04.2025, � M.K. Nambyor Saarf Law Charitable Trust v. Union of India in WP (C) 7689/2004 - 28.05.2004 - Delhi High Court. � DIT v. Garden City Educational Trust in ITA No. 57 of 2004, [2011] 330 ITR 480 - 15.07.2009 - Karnataka High Court.

Sr. DR’) for the revenue submits that objects and activities of the assessee

has not been examined by Ld.CIT(E). Now, as per the submissions of ld AR

of the assessee, the assessee has amended their objects/MOA. Therefore,

the matter may be restored back to the file of Ld.CIT(E) for considering the

application for registration afresh with the direction to the assessee to

furnish complete details to substantiate objects and activities. In case,

objects and activities are found acceptable and the assessee is found

eligible, the other application for approval of the funds may be considered

by Ld.CIT(E).

through the material placed before us. Before us, the Ld. AR of the

assessee vehemently argued that, after the order of rejection of the

assessee’s application for registration under Section 12AB, the assessee has

amended its objects/MOA and there is no such clause for application of income outside India. We find that, the Ld.CIT(E) rejected the application

of the assessee on taking view that, one of the object of the assessee is to

apply/receive funds outside India, without examining the object and

activities of the assessee. Now, the assessee has amended such objects.

Therefore, we deem it appropriate to restore the matter back to the file of

the Ld.CIT(E) with the direction to reconsider the matter afresh and pass

the order in accordance with the law. Needless to direct that before passing

the order afresh, the Ld.CIT(E) shall allow a fair and reasonable

opportunity to the assessee. The assessee is also directed to furnish the

amended Objects/Trust Deed/MOA. In the result, the appeal in ITA No.

7279/Mum/2025 is allowed for statistical purposes.

ITA N. 7278/Mum/2025 [In the matter of approval under Section 80G(5)]. 6. Considering the fact that, we have already restored the application for

registration under Section 12AB. Therefore, this appeal is restored back to

the file of the Ld.CIT(E) after passing the order in the matter of application

for registration under Section 12AB. In the result, the grounds of appeal

raised in this appeal are also allowed for statistical purposes.

Order pronounced in open Court on 09.07.2026 at the time of hearing

Sd Sd/- /- Sd/- Sd/- OM PRAKASH KANT PAWAN SINGH ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai, Dated: 09/07/2026 Aditi Pandare, PS Aditi Pandare, PS Aditi Pandare, PS Aditi Pandare, PS Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT and (5) Guard file. By Order

Assistant Registrar ITAT, Mumbai