Reliance Foundation Institution of Education And Research Vs CIT (ITAT Mumbai)
CIT(E) Cannot Ignore Existing Approval and Deny 12AB Renewal: ITAT Grants Relief to Jio Institute
The Mumbai ITAT quashed the orders rejecting renewal of Section 12AB registration and Section 80G approval to Reliance Foundation Institution of Education and Research (Jio Institute), holding that the CIT(E) had proceeded on a factually incorrect assumption that the institution had not obtained approval for its amended objects.
The CIT(E) had denied renewal on the ground that after modifying its objects, the institution failed to file an application under Section 12A(1)(ac)(v) within the prescribed time and therefore the amended objects had never been approved by the competent authority. Based on this alleged non-compliance, both the 12AB renewal and consequential 80G approval were rejected.
Before the Tribunal, the assessee demonstrated that it had in fact filed the required application after amendment of its objects and had already obtained approval through Form 10AD dated 18.04.2024, issued by the CIT(E) himself. The Tribunal noted that this approval order had also been specifically furnished during the renewal proceedings, yet the CIT(E) ignored the same and proceeded as if no such approval existed.
The ITAT observed that the scope of enquiry under Section 12AB is limited to examining the charitable nature of the objects, genuineness of activities and compliance with laws material to achieving those objects. There was no finding that Jio Institute’s educational objects were non-charitable, no allegation that its activities were not genuine and no finding of any violation of law affecting its educational purpose. The rejection was founded solely on a procedural objection that was contrary to the Department’s own records.
Holding that a statutory authority cannot disregard its own subsisting approval order and then deny renewal on the premise that no approval was obtained, the Tribunal directed the CIT(E) to grant renewal of registration under Section 12AB and approval under Section 80G with effect from 01.04.2026.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
