Shamkris Charity Foundation Vs CIT (Exemptions) (ITAT Mumbai)
The Income Tax Appellate Tribunal (ITAT), Mumbai, delivered its order in the case concerning the denial of registration under Section 12A/12AB of the Income Tax Act, 1961, to a charitable institution. The appeal was filed by the assessee against the order of the Commissioner of Income Tax (Exemptions), Mumbai [CIT(E)], dated 24.02.2025, which rejected the assessee’s application for registration.
The assessee, a company incorporated on 06.08.2021 under Section 8 of the Companies Act, 2013, had objects relating to education, medical relief, relief to the poor, and advancement of general public utility. It had already been granted provisional registration under Section 12A for Assessment Years (AY) 2022-23 to 2024-25. The assessee subsequently applied for final registration on 24.08.2024. The CIT(E) rejected the application, citing two reasons—first, that the application was filed belatedly, and second, that the trust’s objects allowed potential use of funds outside India, which was considered contrary to the provisions of the Act.
Before the Tribunal, the assessee filed an application for condonation of delay of 19 days in filing the appeal. The ITAT, after hearing both parties, found the delay justified and condoned it, relying on the Supreme Court’s decision in Collector, Land Acquisition v. M.S.T. Katiji & Ors. The Tribunal observed that the delay in filing Form 10AB for final registration was due to an inadvertent mistake by an employee responsible for tax matters. The CIT(E) had not condoned the delay.
