ITAT Mumbai Restores Trust's 12AB Registration Matter To CIT(E) For Fresh Consideration

The Income Tax Appellate Tribunal, Mumbai Bench, has set aside an order passed by the Commissioner of Income Tax (Exemptions) [CIT(E)] rejecting the application of Shri Hans Maharaj Trust for registration under Section 12AB of the Income Tax Act, 1961, and has remanded the matter back for fresh adjudication. A Bench comprising Accountant Member Vikram Singh Yadav and Judicial Member Anikesh Banerjee was dealing with an appeal filed by the trust against the order dated 26.12.2024, whereby the CIT(E) had declined registration on the ground that one of the objects in the trust deed allegedly violated Section 11 of the Act by permitting application of funds outside India. At the outset, the Tribunal condoned a delay of 11 days in filing the appeal after noting that the authorized Chartered Accountant of the trust was seriously ill and hospitalized, observing that sufficient cause had been shown for the delay. The Bench noted that the CIT(E) had raised objection to Clause 3(e) of the objects clause, observing that it contemplated application or receipt of funds outside India. However, the assessee clarified that the trust had neither incurred nor proposed to incur any expenditure outside India and that there was no authority under the trust deed to do so in violation of Section 11. The Tribunal further recorded that the trust had placed on record the amended trust deed and supporting documents evidencing its charitable activities, which, according to the assessee, were not duly considered by the CIT(E). In view of the above, the Tribunal restored the matter to the file of the CIT(E) for de novo consideration, with a direction to examine the amended trust deed and all supporting material in accordance with law. The appeal was thus allowed for statistical purposes. Case Title: Shri Hans Maharaj Trust Vs. CIT (Exemptions) Mumbai Case No.: ITA No. 1721/Mum/2025 Appearance for Assessee: Shri Bharat Kumar Appearance for Revenue: Shri Ritesh Mishra, CIT DR Click Here to Read/Download Order

ITAT Mumbai Restores Trust's 12AB Registration Matter To CIT(E) For Fresh Consideration

Rajnandini Dutta

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