Adhi Ganesh Mandir Charitable Trust Vs Income Tax Department (ITAT Mumbai)
The appeal before the Income Tax Appellate Tribunal (ITAT), Mumbai, arose from the order dated 25.08.2025 passed by the National Faceless Appeal Centre (NFAC), Delhi, relating to assessment year 2023–24. The assessee-trust challenged the denial of exemption under Section 11 of the Income-tax Act, 1961, and the action of the Assessing Officer in taxing the entire receipts of ₹6,94,592/- without allowing deduction of expenditure incurred for charitable activities.
The assessee had filed its return of income on 31.10.2023 declaring nil income after claiming exemption under Section 11. The case was selected for scrutiny on the ground that the assessee did not possess valid registration under Section 12A/12AB for the relevant assessment year. During assessment proceedings, it was noted that although provisional registration under Section 12A had been granted in Form No. 10AC, it was operative only from assessment year 2024–25 onwards and did not cover assessment year 2023–24. Further, the application for regular registration under Section 12AB had been rejected by the Commissioner of Income Tax (Exemptions), Mumbai, on 10.12.2023. Consequently, the Assessing Officer denied exemption under Section 11 and treated the assessee as an Association of Persons for taxation purposes.
