‘Any Other Activity’ Clause in MOA Raises Red Flag – ITAT Upholds Natural Justice, Grants Trust One More Chance

Aviraldhaani Foundation Vs CIT(Exemption) (ITAT Ranchi) Assessee, a non-profit company filed Form 10AB seeking regular registration u/s 12AB(1)(b) (sub-clause (iii) of clause (ac) of s.12A). CIT(E)’s findings: In MOA, main object clause allowed company to undertake “any other activities” not specifically laid down. This gave unfettered powers, inconsistent with s.12AB(4) which mandates activities must conform strictly to stated objects. Held that such vague, overreaching objects made assessee ineligible. Consequently, rejected regular registration and also cancelled provisional registra...