Mohanji Bharat Welfare Foundation Vs CIT (Exemptions) (ITAT Mumbai)
The appeal before the Income Tax Appellate Tribunal (ITAT) Mumbai was filed by Mohanji Bharat Welfare Foundation against the order of the Commissioner of Income Tax (Exemptions) [CIT(E)] cancelling its provisional registration under Section 80G of the Income Tax Act, 1961.
Assessee’s Contentions
The assessee sought to set aside the rejection order on grounds that:
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There was no delay in applying for regular registration under Section 80G, as the application in Form 10AB was filed on 03.08.2024 before the end of AY 2024–25.
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Even if any delay existed, it was due to technical glitches on the Income Tax portal, which was beyond its control.
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The CIT(E) erred in cancelling the registration merely because the Memorandum of Association (MoA) contained a clause permitting application of funds outside India, despite no such activity ever being undertaken.
The assessee submitted that its provisional registration was valid till AY 2024–25 and hence the application was filed in time. It relied on multiple precedents, including Saaksh Foundation vs CIT(E) (ITAT Mumbai), Kailash Math Trust vs CIT(E) (ITAT Pune), and Vaishya Welfare Gaushala and Naturopathy Shiksha Society vs UOI (Chhattisgarh High Court), to argue that delay due to technical reasons could be condoned and that substantial justice should prevail over technicalities.
Further, it was contended that inclusion of the clause regarding “application of funds outside India” in its MoA was a drafting error, supported by an affidavit of its director and a board resolution dated 4 April 2025 for rectification. The assessee cited Dr. T.M.A. Pai Foundation v. CIT(E) (ITAT Bangalore) to argue that issues under Sections 11 and 12 of the Act should be examined during assessment, not at the stage of granting registration under Section 80G.
Revenue’s Stand
The Departmental Representative (DR) opposed the appeal, asserting that:
