Aditya Birla Education Trust Vs CIT (Exemption) (ITAT Mumbai)
Section 12AB Renewal Rejection Set Aside as Earlier ITAT Directions Were Binding: ITAT Mumbai
The appeal before the Income Tax Appellate Tribunal (ITAT), Mumbai Bench “A”, arose from the order dated 30.03.2026 passed by the Commissioner of Income Tax (Exemption), Mumbai rejecting the assessee’s application for renewal of registration under Section 12AB of the Income-tax Act, 1961. The appeal related to the renewal application filed under Section 12A(1)(ac)(ii) after the registration originally granted on 28.05.2021 was approaching expiry.
Following the statutory amendments requiring re-registration of charitable institutions, the assessee had applied under Section 12A(1)(ac)(i) on 22.04.2021 and obtained registration under Section 12AB on 28.05.2021 for five years up to Assessment Year 2026-27. During the subsistence of this registration, the trustees passed a resolution on 28.01.2022 modifying certain clauses of the trust deed to expressly incorporate and clarify objects relating to medical relief, which had earlier been pursued under the broader object of advancement of general public utility. The amended trust deed received approval from the Charity Commissioner on 02.09.2024, following which the assessee filed an application on 24.12.2024 under Section 12A(1)(ac)(v) seeking approval of the modified objects.
The Commissioner (Exemption), by order dated 30.06.2025, rejected the application and cancelled the registration primarily on three grounds: (i) the assessee had allegedly applied funds outside India for carrying out charitable activities outside India; (ii) its activities were allegedly intended to benefit a particular Marwadi community; and (iii) certain workshops, training programmes and allied activities did not constitute “education” within the meaning of the Act.
