JINSEVA FOUNDATION,MUMBAI vs. CIT (EXEMPTION), MUMBAI
Income Tax Appellate Tribunal, MUMBAI BENCH “F” MUMBAI
Before: MS. KAVITHA RAJAGOPAL () & SMT. RENU JAUHRI ()
PER RENU JAUHRI, AM These two appeals by the assessee are directed against two separate order both dated 27.03.2025 passed by the Ld. Commissioner of Income-tax (Exemptions), Mumbai [in short ‘the Ld. CIT(E)’] for assessment year 2025-26 respectively. 2. The grounds raised by the assessee in ITA No. 3531/Mum/2025 are reproduced as under:
Ground - 1 - circumstances application fo
12AB of the In objects of the the same pro
CIT (Exemptio been actually will be incur people in Indi law.
Ground - 2- circumstances said applicat with same obj
Ground - 3 -
(Exemptions) also in law,
India can at b
Act and canno
Ground - 4
precaution an undertaking memorandum
Hon. CIT (Exe be set-aside a (Exemptions) objects and g
3. Brief facts of the for provisional regist
No. 10AC dated 22.0
u/s 8 of the Compa application for regu
10AB. Ld. CIT(Exemp application after obs
J
The Hon. CIT (Exemptions) on the fac s of the case and also in law, erred in or registration under section 12A read
Income-tax Act, 1961 ("the Act") on the gro appellant are in violation of section 11 of ovides for utilization of funds outside In ons) failed to appreciate that no such e y incurred outside India and if at all any rred in future, the sume will result in ia. Accordingly, the rejection of the applica
The Hon. CIT (Exemptions) on the fact s of the case and also in law, erred in ion even though provisional registration jects and on same facts.
Without prejudice to ground no. 1 and 2, on the facts and in the circumstances of failed to appreciate that utilization of f best lead to disallowance of exemption u ot be a ground for rejection of registration
- Without prejudice to the above, out nd in good faith, the appellant is in th necessary amendments to the obje m of association to address the concerns emptions). Accordingly, the rejection orde and the matter be restored to the file of to consider the said application based rant the registration, e case are that the assessee filed tration u/s 12A which was gra
02.2023. The assessee is a com anies Act. Subsequently, the as ular registration on 30.09.202
ptions) vide order dated 27.03.2
serving that as per the trust
ITA Nos. 3531 &
3532/MUM/2025
2
Jinseva Foundation cts and in the n rejecting the d with section ounds that the f the Act since dia. The Hon.
expenses have such expense the bencfit of ation is bad in ts and in the n rejecting the n was granted
, the Hon. CIT f the case and funds outside u/s. 11 of the n u/s. 12A.
of abundant he process of ect clause of raised by the er may please f the Hon. CIT d on modified d an application anted vide Form mpany registered ssessee filed an 4 in Form No.
025 rejected the deed/MOA, the objects are in violatio assessee intended assessee explained in objects of the clause will not be for the further clarified that services from foreign and hence, the object
4. The Ld. CIT(Exe explanation and pr following observation
“4.2 The use deed clearly thereby leavi may involve has accepted counterparts.
clauses to alig it has failed to 5. Registratio provisions of s the objects of and the comp are material f above mentio option but to r
12AB of the 5. Aggrieved with assessee has preferre
J on of provisions of section 11 o to apply/receive funds outsi n response to the show cause shall extend to whole of India a benefit of people outside India the objects merely state that as n counterparts for the benefit of ts are not in violation of section emptions) however did not accep roceeded to reject the applic ns:
of such words above referred objects in t conveys its intention to utilise fund o ing open the possibility for future endea expenditure outside the country. Also, d that it intends to avail services from The applicant trust ought to have am gn with the provisions of the Income Tax o do so n under section 12AB is to be granted in section 12AB(1)(b) of the Act after being s f the trust or institution, the genuineness pliance of any other law for the time bei for the purposes of achieving its objects.
oned violation, the undersigned is left reject the application seeking registration
Act.”
the order of the Ld. CIT(Ex ed an appeal before the Tribuna
ITA Nos. 3531 &
3532/MUM/2025
3
Jinseva Foundation of the Act as the ide India. The notice that the and its activities a. The assessee sessee can avail f people in India
11 of the Act.
pt the assessee’s ation with the the MOA/trust outside India, avours, which the applicant m the foreign mended these
Act. However, n terms of the satisfied about s of activities, ing in force as In the view of with no other under section xemptions), the l.
1 Before us, the L mention of words “ou not mean that it is in decided in favour of ordinate Benches. Th in the following cases (i) Odhavi Chana 1165/Mum/2025. (ii) Dedhia Mus (Mum-ITAT) 6. The Ld. Departm relied on the order o application of funds provisions of sectio registration was corre 7. We have careful decisions cited by th covered by the decis Dedhia Music Fou discussion of the issu “11. As is evident fro charitable purpose bu geographical boundary a geographical restric J
Ld. AR has submitted that the i utside India” in different clause n violation of the Act has been f the assessee in various decis he Ld. AR has placed reliance o s :
abhai Peraj Charity Trust (ITA
.
sic Foundation (2025) 173 Taxma mental Representative (DR) on of the Ld. CIT(Exemptions) and s outside India would be in v on 11 of the Act and henc ect and deserves to be upheld.
lly heard the rival submissions a he Ld. AR. We note that the is sion of the Co-ordinate Bench undation
(supra) wherein a ue, it has been held as under:
om the above, the section lists various activ ut there is no restriction to the scope of suc y of India. It is only section 11, as reproduce ction allowing exemption only to incomes
ITA Nos. 3531 &
3532/MUM/2025
4
Jinseva Foundation issue relating to es of MOA does considered and sions of the Co- on the decisions
No. 1164 &
ann.com 394
the other hand, argued that the violation of the ce rejection of and perused the ssue is squarely h of the case of after thorough vities which qualify as ch activities within the ed above, which places applied to charitable purposes in India. Bu incomes applied outsid applications, as mentio
12. As is evident from for charitable purpose for grant exemption.
13. The Ld. Pr. CIT's applicant assessee me outside India, we hold this was not the sole a incidental object. It is within India at all as involves carrying out registration u/s 12AA application of income exemption to income ap
14. Further as rightly section 11(1)(c) of the activities carried out in the purpose of determ
The said section comes and therefore cannot b
Act. The scheme of the in section 2(15) of th satisfaction of the conc is provided/restricted in India.
15. The issue we find relied upon by the Ld
SAARC Law Charitabl rejected on the ground paid to members even income outside India registration u/s 12AA satisfaction about the registration with no re
The relevant findings o
'The judgment of t
B.C. Patel C.J. - M against the order
J ut even the said section does not completely de India for charitable purposes, granting exe oned in section 11(1)(c), subject to being appro m the above, in the scheme of the Act, incomes s are not completely and categorically ruled s order,in the present case, therefore deny erely for the reason that its objects included d, is not in accordance with law. More particul and main object of the applicant assessee, bu not the case therefore that there is to be no per the objects. In fact the main object of t charitable activities in India. In this factu
A of the Act, for the reason that its inci outside India, we find, would result in the a pplied in India, which it would otherwise be e pointed out by the Ld. Counsel for the asse e Act, which the Ld.CIT(E) has relied upon n India will qualify as charitable for grant of mining the income which qualifies for exempt s into operation only once registration is gran be relevant for the purposes of granting regis e Act is that all entities carrying out charitabl he Act, qualify to be registered as charita cerned officer vis-a-vis their objects and activi only to the extent of income which is applied d, is squarely covered in favour of the asse d. Counsel for the assessee before us. In the e Trust (supra), we find, the application for gr d that the applicant itself had admitted that th n outside India. The Hon'ble High Court held is not a relevant criteria for rejecting the a A of the Act and the officer has to only objects and genuineness of the activities of t estriction on the activities being carried out i of the Hon'ble High Court is as under:
the court was delivered by M.K. Nambyar SAARC Law Charitable Trust r made by the Director of Income-tax (Exem
ITA Nos. 3531 &
3532/MUM/2025
5
Jinseva Foundation y rule out exemption to emption to certain such oved by the Board.
s applied outside India out from being eligible ing registration to the d application of income larly when, admittedly, ut only its ancillary and o application of income the applicant assessee ual situation, denying idental object entailed assessee being denied entitled to under law.
essee, the provisions of n for holding that only registration, is only for tion u/s 11 of the Act.
nted u/s 12A of the Act stration u/s 12A of the le activities, as defined ble entities subject to ities, but the exemption d for charitable purpose essee by the decisions e case of MK Nambyar rant of registration was he scholarship could be that the application of application for grant of restrict himself to the the trust while granting nside or outside India.
t has filed this petition mptions) New Delhi, on February 24, 200
for registration un tax Act, 1961 (he the ground that th the members even be extended outs registration canno exemption under s
Section 11 of the purposes. The rele
"11. (1) Subject to be included in th income-
(a) income derived purposes, to the e and, where any purposes in India not in excess of fif
(c) income derived
(i) created on or af to promote interna such income is ap
(ii) for charitable the extent to whic
Provided that th that it shall not income;
(d) ******
3. So far as the be extent to which s income is applied if the permission benefit can be ex
Reading the secti has to call for do genuineness of th deem necessary.
the genuineness o
J
The aforesaid trust submitted two applica nder section 12A and recognition under secti ereinafter referred to as "the Act"). The applic he applicant itself has admitted that the scho n outside India. It is in view of this admission side India as per the objects laid down, ot be granted under section 12A of the Ac section 80G also cannot be granted. Act refers to income from property held for evant provisions are reproduced hereunder: o the provisions of sections 60 to 63, the follo he total income of the previous year of the p d from property held under trust wholly for extent to which such income is applied to su such income is accumulated or set apart f a, to the extent to which the income so accum fteen per cent, of the income from such proper d from property held under trust— fter the 1st day of April, 1952, for a charitabl ational welfare in which India is interested, pplied to such purposes outside India, and or religious purposes, created before the 1st ch such income is applied to such purposes ou he Board, by general or special order, has d be included in the total income of the pers enefit of section 11(1)(a) is concerned, it can b such income is applied to such purposes in to the purposes outside India, then clause (c) is granted by the Board either by general xtended. Section 12AA prescribes the proc ion, it becomes clear that after the applicatio cuments or information from the Trust to sa he activities of the Trust. He can make furth It is only after satisfying himself about the o of its activities that he has to pass an order in ITA Nos. 3531 & 3532/MUM/2025 6 Jinseva Foundation ations in Form No. 10A ion 80G of the Income- cation was rejected on larships can be paid to n that the activities will it was held that the ct and the approval of r charitable or religious owing income shall not person in receipt of the charitable or religious uch purposes in India; for application to such mulated or set apart is rty;... le purpose which tends to the extent to which t day of April, 1952, to utside India ; directed in either case son in receipt of such be extended only to the India. However, if the ) will be applicable and or special order then, cedure for registration. on is made, the officer tisfy himself about the her enquiry as he may objects of the Trust and n writing registering the Trust or institutio does not refer to income for charita the Board for app dated 24-2-2004, necessary for the the activities are behalf and to pas the said Act. So f relevant criteria f 11(1)(a)(c), one ca purposes, outside of Income-tax (Exe is quashed and accordance with l to be considered a a period of four w 16. The aforesaid dec Coordinate Benches of Inc. (supra) ([2017] 88 17. In view of the abov of the Act is set aside the assessee. 18. In the result, the ap 6. We may examine wh applications processed by provisions of sec.11 to 13 two authorities are involved (a) the Ld PCIT or 12AB as the cas (b) the assessing of trust or institutio 7. We shall examine the p u/s 12AB is the Ld PCIT prescribed for the process o (a) For new charita 12AB(1)(c) of the J on. And if he is not satisfied, he can reject t the activities in India or outside India. It r able or religious purposes in India as also wi plication of income as aforesaid outside Ind , it is very clear that there is non-applica e Commissioner to examine the purpose for genuine. It was open for him to make neces ss an order as per the procedure laid down far as income which is applied outside India for rejecting the application. In absence of nnot seek benefit for application of income for e India. Therefore, the order dated 24-2-2004 emptions), Annexed at page 32 which is base set aside with a direction to consider the law. It is made that even application under s afresh. It is directed that the application shal weeks by the Commissioner. cision of the Hon'ble Delhi High Court has of the Tribunal in the case of National Inform taxmann.com 878/57 ITR(T) 457 (Delhi - Trib ve, the order passed by the Ld. CIT(E) denyin and the Ld.CIT(E) is directed to grant registr ppeal of the assessee is allowed." hether the ratio of above said decision wo Ld CIT(E) under new provisions of sec.12AB of the Act, which are applicable to charitab d, viz., CIT is empowered to grant or cancel registr se may be. fficer is the authority who assesses the total on for every assessment year. provisions of sec.12AB of the Act. The authori T or CIT. Under sec, 12AB of the Act, the t of registration or cancellation of charitable tru able trusts or institutions, provisional regis e Act for a period of 3 years from the assess ITA Nos. 3531 & 3532/MUM/2025 7 Jinseva Foundation the same. This section refers to application of ith direction or order of dia. Reading the order ation of mind. It was satisfying himself that ssary enquiries in this under section 12AA of a is concerned, is not a of order under section r charitable or religious 4 made by the Director ed on irrelevant criteria application strictly in section 80G is required ll be disposed of within been followed by the matics Centre Services b.)) ng registration u/s 12A ration as applied for by uld also apply to the B of the Act. Under the ble trusts or institution, ration u/s 12A, 12AA or income of the charitable ity to grant registration three steps have been sts or institution. stration is granted u/s sment year for which the registration is so (b) Permanent regis period of five ye (c) Where a provisi the Act, the Ld registration in ac 8. As noticed earlier, the a income of a charitable trus sec.11(1), exemption u/s 1 charitable purposes in Ind income was applied needs charitable trust or institut purposes or applied outside be taxable in India. 9. We shall compare the p conditions for granting regis (A) SECTION 12AA:- "12AA. [Procedure (1) The Principal registration of a tr of sub-section (1) (a) [call for such d necessary in ord (i) the genuineness (ii) the compliance o the trust or inst may also make s (b) after satisfying genuineness of compliance of th (i) shall pass an or J ought. stration shall be granted u/s 12AB(1)(a)/12A ars, when the charitable trusts or institutions ional registration or permanent registration is d PCIT/CIT is empowered u/s 12AB(4) of ccordance with that provisions. assessing officer is the authority who is empo st or institution and granting of exemption u/ 11 is restricted "to the extent to which such dia". Thus the recognition of geographical ju s to be recognised or examined while comput tion. We also noticed that the income app e India will not be exempt u/s 11 of the Act, provisions of sec.12AA and sec. 12AB of the A stration. e for registration.] Commissioner or Commissioner, on receipt rust or institution made under clause (a) or cla of section 12A, shall— documents or information from the trust or der to satisfy himself about, — s of activities of the trust or institution; and of such requirements of any other law for th titution as are material for the purpose of ac such inquiries as he may deem necessary in g himself about the objects of the trust f its activities as required under sub-claus he requirements under sub-clause (ii) of the sa rder in writing registering the trust or institutio ITA Nos. 3531 & 3532/MUM/2025 8 Jinseva Foundation AB(1)(b) of the Act for a s apply for the same. s granted u/s12AB(1) of f the Act to cancel the wered to determine the s 11 of the Act. As per h income is applied to uri iction wherein the ting total income of the plied for noncharitable i.e., such income shall Act which prescribe the t of an application for ause (aa) or clause (ab) institution as he thinks he time being in force by chieving its objects, and this behalf; and] or institution and the se (i) of clause (a) and aid clause], he— on;
(ii) shall, if he is no institution, and a (B) SECTION12AB.
12AB. [Procedure for fr
(1) The Principal Comm clause (ac) of sub-secti
(a) where the applic in writing registe
(b) where the appli
(iv) or sub-clause
(i) call for such do inquiries as he t
(A) the g
(B) the c in force achievin
(ii) after satisfying genuineness of i item (B), of sub-c
(A) pass an order in wr
(B) if he is not so sati cancelling its registrati
(c) where the applic in writing provis from the assess such order to the 9.1. We notice that the pr of Ld CIT(E) to cancel the r
Ld CIT(E) to cancel the regi be noticed that the provisio and sec.12AB are identical ratio of the decision rende applications processed by L
J t so satisfied, pass an order in writing refusin a copy of such order shall be sent to the appli resh registration.] [Ins. by the Act No. 38 of 20
missioner or Commissioner, on receipt of an a ion (1) of section 12A, shall,—
cation is made under sub-clause (i) of the sa ering the trust or institution for a period of five ication is made under sub-clause (ii) or sub-c e (v) of the said clause,—
ocuments or information from the trust or in thinks necessary in order to satisfy himself ab genuineness of activities of the trust or institut compliance of such requirements of any other by the trust or institution as are materi ng its objects; g himself about the objects of the trust its activities under item (A) and compliance of clause (i),—
riting registering the trust or institution for a p isfied, pass an order in writing rejecting suc ion after affording a reasonable opportunity of cation is made under sub-clause (vi) of the sa sionally registering the trust or institution for sment year from which the registration is sou e trust or institution.
rovisions of sec.12AA(3) and 12AA(4) of the A registration. Similarly, the provisions of sec.
istration already granted either provisionally ons relating to cancellation of registration gr lly worded under the respective provisions. H ered in the context of sec.12AA can be conve
Ld CIT(E) u/s 12AB of the Act.
ITA Nos. 3531 &
3532/MUM/2025
9
Jinseva Foundation ng to register the trust or icant."
020, w.e.f. 1-4-2021.]
application made under id clause, pass an order e years; clause (iii) or sub-clause nstitution or make such bout—
tion; and r law for the time being ial for the purpose of or institution and the f the requirements under period offive years; or ch application and also of being heard; aid clause, pass an order r a period of three years ught, and send a copy of Act describes the power
12AB(4) empowers the or permanently. It can ranted under sec.12AA
Hence, in our view, the eniently applied to the 10. However, it is noti sec.12AA(3) & (4). Even tho the provisions of sec.12AB( to the facts of the present c
"(4) Where registration granted under clause section (1) of section 12
(a) the Principal Co specified violatio
(b) the Principal C
Assessing Office previous year; o
(c) such case has formulated by t
Commissioner o
(i) call for such do inquiry as he th otherwise of any (ii) pass an order in affording a reas subsequent prev have taken place
(iii) pass an order institution, if he violations;
(iv) forward a copy o
Assessing Office
Explanation. — For th violation", —
(a) where any inco charitable or rel trust or institutio
J iced that the provisions of sec. 12AB(4) ough, in the instant case, the Ld CIT(E) has n
(4) of the Act, we may examine the applicabili case. The provisions of sec.12AB(4) reads as u n or provisional registration of a trust or a (a) or clause (b) or clause (c) of sub-section (
2AA, as the case may be, and subsequently, ommissioner or Commissioner has noticed oc ons during any previous year; or Commissioner or Commissioner has receive er under the second proviso to sub-section (3
r been selected in accordance with the risk the Board from time to time, for any prev r Commissioner shall —
ocuments or information from the trust or in hinks necessary in order to satisfy himself y specified violation; n writing, cancelling the registration of such sonable opportunity of being heard, for such vious years, if he is satisfied that one or m e; in writing, refusing to cancel the registr e is not satisfied about the occurrence of of the order under clause (ii) or clause (iii), as er and such trust or institution.
he purposes of this sub-section, the following ome derived from property held under trus ligious purposes, has been applied, other tha on; or ITA Nos. 3531 &
3532/MUM/2025
10
Jinseva Foundation is elaborate vis-a-vis not specifically invoked ity of the said provision under:- n institution has been (1) or clause (b) of sub-
—
ccurrence of one or more d a reference from the 3) of section 143 for any k management strategy, vious year, the Principal nstitution, or make such about the occurrence or trust or institution, after h previous year and all more specified violations ration of such trust or f one or more specified s the case may be, to the g shall mean "specified t, wholly or in part for an for the objects of the (b) the trust or inst incidental to the maintained by s to the attainmen
(c) the trust or ins under a trust fo the public; or (d) the trust or insti the commencem any particular re
(e) any activity bein
(i) is not genuine; o
(ii) is not being car which it was reg
(f) the trust or inst referred to in ite direction or decr occurred, has ei
11. It can be noticed from granted either provisionally that one or more specified to cancel the registration g defined in the Explanation definition", since it starts t shall mean "specified viola any violation other than tho to cancel the registration.
12. In the present case, a apply its income outside In and hence the registration now examine as to whethe actual application of income of the categories of "specifie or not.
J titution has income from profits and gains o e attainment of its objectives or separate bo such trust or institution in respect of the busi nt of its objectives; or titution has applied any part of its income or private religious purposes, which does not itution established for charitable purpose cre ment of this Act, has applied any part of its eligious community or caste; or ng carried out by the trust or institution —
or rried out in accordance with all or any of t gistered; or titution has not complied with the requireme em (B) of sub-clause (i) of clause (b) of sub-s ree, by whatever name called, holding that s ther not been disputed or has attained finality m the provisions of sec. 12AB(4) of the Act, th y or permanently may be cancelled by Ld C violations have taken place. If he is not satis granted u/s 12AB of the Act. The expression n. It can be noticed that the said definitio the expression "For the purposes of this sub tion". Hence, it is an exhaustive definition. C ose stated in the Explanation, then the Ld CIT according to Ld CIT(E), the objects clause en dia. According to Ld CIT(E), the same is not p provisionally granted to the assessee may er the existence of objects for carrying out act e outside India in accordance with its objects ed violations" listed out in the Explanation to ITA Nos. 3531 &
3532/MUM/2025
11
Jinseva Foundation of business which is not ooks of account are not iness which is incidental from the property held t enure for the benefit of eated or established after income for the benefit of he conditions subject to ent of any other law, as ection (1), and the order, such non-compliance has y."
he registration already
CIT(E), if he is satisfied sfied so, he may refuse n „specified violation' is on is not an "inclusive b-section, the following onsequently, if there is T(E) shall not get power nables the assessee to permitted under the Act be cancelled. We shall tivities outside India or s, would fall under any sec. 12AB(4) of the Act
"(i)
Clause (a) woul charitable purpo institution. Henc trust or instituti of a charitable T income is applie income "for obje within the mean
(ii)
Clause (b) woul there is violati application of in (iii)
Clause (c) wou purposes is app public. The ass hence this claus
(iv)
Clause (d) wou religious commu
(v)
Clause (e) woul institution —
(i) is not genuine; o
(ii) is not being car which it was reg
This clause would be not genuine or in viola
12AB was granted. In have been carried on i above said observatio observations of Ld CIT
(vi)
Clause (f) would
"any other law".
Income tax Act.
of sec.12AB(1)(b
" (B) the complian by the trust or ins
J ld be attracted only if any income derived fr ose is applied other than for the objects of ce, so long as any income is applied for the on, the clause (a) would not get attracted. Th
Trust or Institution permits carrying on objects ed for such objects, then it cannot be cons ects other than the objects of the charitable tr ning of clause (a). Consequently, the clause (a) ld be attracted only if any business or profe on as mentioned therein. This clause wi ncome for permitted objects outside India.
uld be attracted when income of trust he plied for those purposes, which does not e essee herein is not a trust held for private se will not apply to the assessee herein.
uld be attracted when income of the trust i unity or caste. This clause will also not apply t ld be attracted when any activity being car or rried out in accordance with all or any of t gistered.
attracted when the activities of the charitabl ation of any of the conditions subject to whic n the instant case, the Ld CIT(E) has stated th is not supported by the expenses incurred. A ns are against the facts available on record.
T(E) is dealt with separately infra.
d be attracted when there is failure to comply
. Under this clause "any other law" would m
This meaning can be understood from the Su b) of the Act, which reads as under:- nce of such requirements of any other law for stitution as are material for the purpose of ach
ITA Nos. 3531 &
3532/MUM/2025
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Jinseva Foundation rom the property held for f the charitable trust or objects of the charitable hus, if the objects clause s outside India and if any sidered as application of rust or institution" falling
) would not be attracted.
ession is carried on and ill not be attracted for eld for private religious nsure for the benefit of religious purposes and is applied for particular to the assessee herein.
rried out by the trust or the conditions subject to le trust or institution is ch the registration u/s he activities claimed to ccording to Ld A.R, the Hence the above said with the requirements of mean any law other than ub-clause (B) of clause (i) r the time being in force hieving its objects".
The Ld CIT(E) has to ensu requirement of „any other achieving its objects. Here, restricted to compliance of t
12.1. It may be noticed th application of income as m the condition to be satisfied
13. In our view, the prov law", since it is only a com charitable trust or institutio the objects of the trust. Fu income derived from prope violation of any law. Sec. 1
income applied for charitab applied outside India. He construed to be violation
Explanation to sec. 12AB(4)
14. The foregoing discussi or institution outside India of "specified violation" as m decision rendered by Hon
Charitable Trust v. Union o the provisions of sec.12AB the activities carried in Indi
15. In view of the foregoin carrying out any activity o
12AB of the Act. As observe is permitted by the CBDT) w
16. Hence, the first reaso case, we are unable to ag clause of the assessee, whi
"Promote Indian herita and performances by support training schoo and skill levels, to Ind and recording, Organ musicians and scholar
A careful perusal of the a conferences that bring tog world, i.e., it talks about
J ure that the charitable trust or institution h law for the time being in force', as are mate
, it is pertinent to note that the verification b those laws as are material for the purpose of hat clauses (a),(c),(d) and (e) would be attract mentioned in those clauses. Hence "actual ap d for attracting the above said four clauses.
isions of sec.11(1) would not fall under the mputation provision. The provisions of sec.1
on to comply with any requirements, which a urther provisions of sec.11(1) do not state erty held under trust for activities carried o
11 only states that the exemption under that ble purposes in India, i.e., it does not perm ence income, if any, applied for objects ou of 'any other law' falling within the mea
) of the Act.
ions would show that the application of incom for carrying out its objects will not fall unde mentioned in the Explanation to sec.12AB(4) n'ble Delhi High Court in the case of M.K.
of India [2004] 140 Taxman 616/269 ITR 55
of the Act also, since the provisions of sec.12
ia or outside India.
ng discussions, it can be concluded that exis utside India will not enable the Ld CIT(E) to ed earlier, such kind of application of income will not be exempted u/s 11 of the Act.
oning given by Ld CIT(E) is liable to be quas gree with the interpretation given by the Ld ich reads as under:- age art such as Indian Classical music, Org renowned and emerging Indian classical m ol or institute to teach Indian classical music dian classical musicians to cover the costs o ize festivals and conferences that bring tog rs from around the world."
above cited object clause talks about the or gether Indian Classical musicians and scho mobilizing the Indian classical musicians a ITA Nos. 3531 &
3532/MUM/2025
13
Jinseva Foundation has complied with the erial for the purpose of by Ld CIT(E) should be achieving its objects.
ted only when there is pplication of income" is category of "any other
1(1) do not require the are essential to achieve that the application of utside India results in t section is restricted to it exemption of income utside India cannot be aning of clause (f) of me of a charitable trust er any of the categories of the Act. Hence, the Nambyar Saarf Law
56 (Delhi) will apply to 2AB also do not refer to stence of any object for o deny registration u/s outside India (unless it shed. On merits of the d CIT(E) to the objects ganize regular concerts musicians, Establish or to students of all ages of performance, travel, gether Indian classical rganizing festivals and olars from around the nd scholars, wherever they are located. It nowher applied outside India. Eve
11(c) of the Act, would not g
Ld CIT(E) was not justified him.
17. The second reasonin assessee do not prove the the assessee has filed req assessee has also furnishe assessee. Accordingly, he assessee may be provided prove the activities carried
17.1. We find merit in the Ld CIT(E) with regard to a deficiencies noticed by him has furnished additional genuineness of activities.
additional evidences furnis
18. Accordingly, we set application filed by the as restore all the issues to hi again afresh in the light of 19. We shall not adjudica
Ld CIT(E) rejecting the appl
20. We notice that the Ld denied registration to the a cancelled the order passed sought by the assessee u/
preceding paragraphs, we u/s 80G of the Act and res light of discussions made s
21. Needless to mention, heard.
22. In the result, both the 7.1 We find that th the facts of the prese the term ‘outside Ind
J re states that the income of the charitable trus en if it is applied outside India, then the ass get exemption of the income so applied u/s 1
d in rejecting the application of the on appreh ng given by the assessee is that the expe activities carried on by it. In this regard, the quired documents before Ld CIT(E). He furth ed additional evidences relating to the activ prayed that these additional evidences may d with an opportunity to present all the deta on by it.
e prayer of the assessee. We notice that the activities is general in nature, i.e., the Ld C m in the documents furnished by the assessee evidences in order to satisfy Ld CIT(E)
Accordingly, in the interest of natural j shed by the assessee.
t aside the impugned order passed by L ssessee seeking permanent registration u/s is file with the direction to process the appli discussions made supra.
te the appeal filed by the assessee challengin lication filed by the assessee seeking recognit
CIT(E) has rejected the application on the rea assessee u/s 12AB of the Act. In the preceding d by Ld CIT(E) and restored all the issues rela
/s 12AB of the Act. Following the said orde set aside the order passed by Ld CIT(E) re store all the issues to his for examining the ap supra.
the assessee should be provided with prope appeals of the assessee are treated as allowe he above decision is squarely a ent case. We therefore, hold that dia’ in various clauses u/s 3(b)(4
ITA Nos. 3531 &
3532/MUM/2025
14
Jinseva Foundation st or institution shall be sessee, subject to sec.
1 of the Act. Hence the hension entertained by enses incurred by the Ld A.R submitted that her submitted that the vities carried on by the y be admitted and the ails before Ld CIT(E) to observations made by CIT(E) did not state the . Further, the assessee
) with regard to the justice, we admit the d CIT(E) rejecting the s 12AB of the Act and ication of the assessee ng the order passed by tion u/s 80G of the Act.
asoning that the he has g paragraphs, we have ating to the registration er passed by us in the ejecting the recognition pplication afresh in the er opportunity of being ed.”
application with t the mention of 41), 3(b)(42) and 3b(43) in the MOA registration as has Accordingly, we direc of registration subjec this purpose the ma merits. Needless to a opportunity of being
ITA No. 3532/Mum/
8. ITA No. 3532/M registration u/s 80G been directed to con
Act, the rejection u/s CIT(Exemptions) to d the assessee.
9. In the result, bo
Order pronoun (KAVITHA RA
JUDICIAL M
Mumbai;
Dated: 29/08/2025
Rahul Sharma, Sr. P.S.
Copy of the Order forward
1. The Appellant
J of the assessee do not call been held in the decision ct the Ld. CIT(Exemptions) to co ct to fulfilment of other requir atter is restored to Ld. CIT(E) add, the assessee should be g heard.
/2025
Mum/2025 relates to rejection o
G of the Act since the Ld. CIT(E nsider and allow registration u s 80G is also set aside with the decide the same after giving due oth the appeals are allowed.
ced in the open Court on 29/0
S
AJAGOPAL)
(RENU
MEMBER
ACCOUNTA ded to :
ITA Nos. 3531 &
3532/MUM/2025
15
Jinseva Foundation for rejection of ns cited above.
nsider the grant rements and for for decision of given reasonable of application for Exemptions) has u/s 12AB of the direction to Ld.
e opportunity to 08/2025. JAUHRI)
ANT MEMBER
The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file.
////
J
BY ORDER
(Assistant Re
ITAT, Mu
ITA Nos. 3531 &
3532/MUM/2025
16
Jinseva Foundation
R, gistrar) umbai