JHAVERBHAI PATEL RESERCH CENTRE ,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTION), MUMBAI

ITA 7359/MUM/2025Status: DisposedITAT Mumbai27 January 202610 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal condoned the 38-day delay in filing the application, citing a liberal approach to delay condonation. It further held that scholarship payments made in Indian Rupees within India to Indian residents for higher education abroad do not amount to expenditure incurred outside India, following established precedents. Therefore, there was no violation of Section 11(1)(c) on this ground.

What were the facts?

The assessee's application for registration under Section 12AB was rejected by the CIT(Exemption) primarily on grounds of a delay in filing after amending trust deed objects and for allegedly violating Section 11(1)(c) by incurring expenditure outside India for scholarships. The assessee argued that the delay was due to the receipt of the Charity Commissioner's order and that scholarship payments made in Indian Rupees within India, even for studies abroad, do not constitute expenditure outside India.

What were the issues?

Whether the delay in filing the application for registration under Section 12AB is condonable and whether scholarship payments made in India for foreign studies constitute expenditure incurred outside India violating Section 11(1)(c).

Which sections of the Income-tax Act were involved?

Section 12AB,Section 11(1)(c),Section 11,Section 12A(1)(ac)(v),Section 119(2)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “F” BENCH, MUMBAI

Before: SHRI PAWAN SINGH, JM & SHRI ARUN KHODPIA, AM

For Appellant: Shri Biren Gabhawala, AR
For Respondent: Shri Vivek Perampurna, CIT-DR
Hearing: 12.01.2026Pronounced: 27.01.2026

Per Arun Khodpia, AM: The instant appeal is filed by the assessee, challenging the order of Commissioner of Income Tax (Exemption) [for short “ld. CIT(E)”] dated 27.09.2025, rejecting the application of assessee in Form 10AB for grant of registration under section 12AB of the Income Tax Act, 1961 (the Act). The grounds of appeal raised by the assessee are as under: 1. “On the facts and in the circumstances of the case and in law, the learned Commissioner of Income-tax (Exemptions) has erred in rejecting the application seeking amendment t

The order continues below.

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