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Facts
The assessee's appeal was against the order of the CIT(E) denying registration under Section 12AB of the Act. The denial was based on a clause in the trust-deed interpreted by the CIT(E) as intending to utilize funds outside India.
Held
The Tribunal noted the assessee's undertaking to amend the impugned objective in the trust-deed. Consequently, the matter was remitted to the CIT(E) for fresh consideration upon amendment of the objects.
Key Issues
Whether the CIT(E) was justified in denying registration under Section 12AB based on the interpretation of a clause in the trust-deed, and if an undertaking to amend the trust deed would warrant remission.
Sections Cited
12AB
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “G” BENCH, MUMBAI
Before: SUNIL KUMAR SINGH, HON’BLE
O R D E R
PER NARENDRA KUMAR BILLAIYA, AM:
This appeal by the assessee is preferred against the order of the ld. CIT (Exemptions)- Mumbai [hereinafter ‘the ld. CIT(E)’] dated 26/09/2024 by which the ld. CIT(A) has denied registration u/s 12AB of the Act.
Having heard the submissions made by the ld. Counsel for the assessee, we have carefully perused the order of the ld. CIT(E). The bone of contention is the clause in the trust-deed which reads “to do all such other things as are incidental or conducive to the attainment of the above objects or any of them.” which according to the ld. CIT(E) meant to utilize funds outside India. The ld. CIT(E) formed the belief that the assessee intends to utilize funds outside India and, therefore, denied registration.
I.T.A. No. 5253/Mum/2024 2