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Facts
The assessee trust's application for registration under Section 80G of the Income Tax Act was rejected by the CIT (Exemptions) due to objectionable clauses in the trust deed that suggested utilization of funds outside India. The trust subsequently amended these clauses.
Held
The Tribunal held that since the objectionable clauses were amended, the CIT (Exemptions) should reconsider the trust's application for registration. The case was restored to the file of the CIT (Exemptions) for a fresh decision.
Key Issues
Whether the rejection of registration under Section 80G was justified based on trust deed clauses suggesting foreign expenditure, and if amendment of these clauses warrants reconsideration of the application.
Sections Cited
80G
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “G” BENCH, MUMBAI
Before: SHRI NARENDRA KUMAR BILLAIYA, HON’BLE & SHRI SANDEEP SINGH KARHAIL, HON’BLE
Assessee by : Shri Harshal Ajmera, A/R Revenue by : Shri Dr. Kishor Dhule, CIT, D/R सुनवाई की तारीख/Date of Hearing : 21/04/2025 घोषणा की तारीख /Date of Pronouncement: 21/04/2025 आदेश/O R D E R
PER NARENDRA KUMAR BILLAIYA, AM:
This appeal by the assessee is directed against the order dated ld. CIT (Exemptions), Mumbai, dated 27/09/2024 by which the ld. CIT(Exemptions) has rejected the application for registration u/s 80G of the Act.
Heard the parties. We have carefully perused the order of the ld. CIT(Exemptions). The relevant observations of the ld. CIT(Exemptions) denying the registration read as under:- “The submission of the assessee is not sufficient and necessary compliance as per the provisions of I.T. Act is concerned. The words in the objects of the trust "Establish branches and offices in different parts of India and abroad-Enter into any agreement with any Government or authority (municipal, local or otherwise) or any corporations, companies, or persons, or any cooperative society or organisation or institutions in any part of the world-organise exchange programs for representatives, staffs and people and to provide training of work in Indian or abroad" means to utilise fund outside India. Such objects leave room for any potential future endeavour may be undertaken by the assessee trust which would result in expenditure outside India. The assessee trust ought to have amended the clauses of the objects mentioned above which are in violation of the I.T Act but it has failed to do so.
I.T.A. No. 5755/Mum/2024 2