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Facts
The appeals were filed by the assessee against orders of the CIT(Exemptions) rejecting applications for registration under sections 12AA and 80G. The rejection was based on a clause in the trust deed allowing funds for charitable work outside India.
Held
The Tribunal noted the assessee's counsel's statement that the Trust would delete the objectionable clause. Consequently, the appeals were restored to the CIT(E) to examine and verify the deletion of the clause and decide afresh.
Key Issues
Whether the trust deed's clause for utilizing funds for charitable work outside India is a valid reason to reject registration under sections 12AA and 80G.
Sections Cited
12AA, 80G, 12A
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Income Tax Appellate Tribunal, “C” BENCH, MUMBAI
Before: SHRI ANIKESH BANERJEE, HON’BLE
O R D E R
PER NARENDRA KUMAR BILLAIYA, AM: & I.T.A. No. 4912/Mum/2024, are two separate appeals by the assessee preferred against two separate orders of the ld. CIT(Exemptions), Mumbai, dated 26/07/2024, rejecting the application for grant of registration u/s 12AA and 80G of the Act. 2. Representatives of both the sides were heard at length. Case records carefully perused. 3. A perusal of the order of the ld. CIT(E), rejecting the claim of registration u/s 12A of the Act shows that the quarrel revolves around the clause in the trust-deed which provides for funds utilised for I.T.A. No. 4911/Mum/2024 & I.T.A. No. 4912/Mum/2024 2 charitable work outside Indian shores for which the ld. CIT(E) was of the firm belief that this clause in the trust-deed proposed to apply for charitable funds received beyond Indian shores and accordingly rejected the application for registration u/s 12A and also u/s 80G of the Act. 4. Before us, the ld. Counsel for the assessee made a statement that if given a chance, the Trust would delete the objectionable clause from its trust-deed to make it in line with the provisions of the Income-tax Act. 5. On such concession we deem it fit to restore both the appeals to the files of the ld. CIT(E). The ld. CIT(E) is directed to examine and verify whether the assessee Trust has deleted the objectionable clause from its trust deed and if found deleted then decide the issue afresh, after affording reasonable and adequate opportunity of being heard to the assessee. 6. In the result, both the appeals of the assessee are allowed for statistical purposes. Order pronounced in the Court on 3rd December, 2024 at Mumbai. (ANIKESH BANERJEE) ACCOUNTANT MEMBER