K M & S K TRIVEDI CHARITABLE TRUST,MUMBAI vs. CIT(EXEMPTION),MUMBAI, MUMBAI

ITA 409/MUM/2025Status: DisposedITAT Mumbai21 March 20259 pages
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What did the Tribunal hold?

The Tribunal held that the impugned order passed by the CIT(E) was not legally sustainable. Upon perusal of the trust deed clauses (c)(v) and (c)(x), it was evident that charitable activities would be carried out in India, as money would be disbursed for education and medical aid in India, not abroad. The Tribunal noted that for students studying abroad, scholarships and fellowships should be awarded in India, and for medical treatment abroad, financial help should be rendered in India. The facts were found to be identical to the case decided by a Coordinate Bench of the ITAT Mumbai in *ITO vs. JN Tata Endowment for the Higher Education of Indians* (supra). Therefore, the Tribunal respectfully followed the earlier judgment, concluding that there was no violation of Section 11 of the Act. The Tribunal set aside the impugned order and restored the matter to the file of the CIT(E) for fresh adjudication, allowing the assessee to present its case within 90 days. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, K.M. & S.K. Trivedi Charitable Trust, filed an appeal against the order dated 24.12.2024 passed by the Commissioner of Income Tax (Exemption), Mumbai (CIT(E)). The CIT(E) rejected the assessee's application for registration under Section 80G(5)(iii) of the Income Tax Act, 1961. The rejection was based on the finding that the trust deed's clauses (c)(v) and (c)(x) allowed for the application/receipt of funds outside India, violating Section 11 of the Act. The assessee had submitted Form 10AB, and after issuing a notice for incomplete documents, the CIT(E) identified the alleged violation. The assessee contended that the trust deed stipulated that any scholarships or medical aid for students/persons studying or receiving treatment abroad should be rendered in India.

What were the issues?

1. Whether the Learned Commissioner of Income-tax (Exemptions) erred in refusing to grant registration under Section 80G(5)(iii) of the Income-tax Act, 1961, due to alleged violation of Section 11 of the Act? (Mixed Law and Fact) 2. Whether the Learned Commissioner of Income-tax (Exemptions) erred in not considering the affidavit stating that the Appellant has not carried on any activities of spending any amount outside India? (Mixed Law and Fact) Assessee's Contentions: - The impugned order is not legally sustainable as there was no violation of Section 11 of the Act. - The CIT(E) did not reproduce the entire clauses (c)(v) and (c)(x) of the trust deed. - Charitable activities are to be carried out in India, and no money is to be received or spent outside India. - Relied on the judgments in *ITO vs. JN Tata Endowment for the Higher Education of Indians* (2024) 165 taxmann.com 758 (Mum-Trib) and *ITO vs. JN Tata Endowment for the Higher Education of Indians* (2024) 166 taxmann.com 126 (Mum-Trib). Revenue's Contentions: - The appeal is liable to be dismissed, supporting the impugned order of the CIT(E).

Which sections of the Income-tax Act were involved?

Section 80G(5)(iii),Section 11

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Income Tax Appellate Tribunal, MUMBAI BENCH “E”, MUMBAI

Before: SHRI OM PRAKASH KANT & SHRI RAJ KUMAR CHAUHAN

For Appellant: Shri Satish R. Mody, Ld. AR
For Respondent: Shri Biswanath Das (CIT- DR)
Pronounced: 21.03.2025

PER RAJ KUMAR CHAUHAN (J.M.):

1.

This appeal is filed by the appellant/assessee against the order dated 24.12.2024 of Learned Commissioner of Income Tax (Exemption), Mumbai [hereinafter referred to as the “CIT(E)”], wherein the Ld. K.M. & S.K. Trivedi Charitable Trust CIT(E) has rejected the appellant application for grant of registration u/s 80G(5)(iii) of the Income Tax Act

2.

The brief facts of the case are that, assessee has filed an application in Form 10AB and req

The order continues below.

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