FULCRUM FOUNDATION ,MUMBAI vs. CIT(EXEMPTIONS), MUMBAI

Facts

The assessee's application for approval under Section 80G of the Income Tax Act was rejected by the CIT(Exemptions) due to an objectionable clause in its memorandum of association, which led the CIT to believe the assessee utilized funds outside India. The assessee then submitted a certificate confirming the alteration of this clause.

Held

The Tribunal noted that the objectionable clause had been removed by the assessee. Therefore, the Tribunal directed the CIT(Exemptions) to re-examine the amended memorandum of association and decide the issue afresh after giving the assessee a reasonable opportunity of being heard.

Key Issues

Whether the rejection of approval under Section 80G was justified based on an objectionable clause in the Memorandum of Association, which was subsequently amended?