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Facts
The assessee trust filed an application for registration under Section 12AB of the Act, which was rejected by the CIT along with a separate application for registration under Section 80G. The assessee provided a resolution to amend its objects clause after being confronted with objectionable clauses.
Held
The Tribunal condoned the delay in filing the appeals. Finding that the assessee has now submitted the necessary resolution to amend the objects clause, the matters were restored to the file of the CIT(E) for fresh consideration.
Key Issues
Whether the CIT was justified in rejecting the application for registration under Sections 12A and 80G of the Act, and if the subsequent amendment to the objects clause warrants reconsideration.
Sections Cited
12A, 80G, 12A(1)(ac)(iii), 12AB
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Income Tax Appellate Tribunal, “G” BENCH, MUMBAI
Before: SHRI NARENDRA KUMAR BILLAIYA, HON’BLE & SHRI SANDEEP SINGH KARHAIL, HON’BLE
O R D E R
PER NARENDRA KUMAR BILLAIYA, AM: & I.T.A. No. 856/Mum/are two separate appeals preferred by the assessee against two separate orders of ld. CIT (Exemptions), Mumbai, one rejecting the application for registration u/s 12A of the Act and other rejecting application for registration u/s 80G of the Act. 2. Briefly stated the facts of the case are that the assessee trust filed an application in Form 10AB u/s 12A(1)(ac)(iii) of the Act seeking registration u/s 12AB of the Act. 3. On perusal of the application read with the trust deed, the ld. CIT(E) was of the belief that the assessee intends to utilize the funds in and outside India. When the assessee was confronted with such objectionable clauses, it stated that it will make necessary corrections in I.T.A. No. 855/Mum/2025 & I.T.A. No. 856/Mum/2025 2 the object clauses with Charity Commission office in due course of time. On finding no documentary evidence, the application was rejected along with rejection of application seeking registration u/s 80G of the Act. 4. Both the appeals before us are barred by limitation. We have gone through the affidavit filed by the assessee seeking condonation of delay and we are satisfied with the reasons for not filing the appeal on time. Delay is condoned. 5. Before us, the ld. Counsel for the assessee filed a resolution to consider and accord approval for alteration to the objects clause of the memorandum of association of the assessee by which, it was proposed to amend the objects clause. 6. As the assessee has filed the resolution wanted by the ld. CIT(E), we deem it fit to restore the impugned issues to the file of the ld. CIT(E). the assessee is directed to furnish the amended memorandum of association with the amended object clause and the ld. CIT(E) is directed to consider the application afresh and decide the issues after affording reasonable and adequate opportunity of being heard to the assessee. 7. In the result, appeals of the assessee are allowed for statistical purposes. Order pronounced in the Court on 18th March, 2025 at Mumbai. (SANDEEP SINGH KARHAIL) ACCOUNTANT MEMBER