Mohammediya Educational Trust Vs ITO (Exemptions) (ITAT Bangalore)
ITAT Remands 80G Approval Case Because CIT(E) Applied Wrong Legal Provisions; Subsequent Form 10AB Filing Maintainable Because No Statutory Bar Exists Under Section 80G; 80G Approval Rejection Set Aside Because CIT(E) Viewed Case From Donor Perspective; Trust Gets Fresh Opportunity Because ITAT Rejects ‘Non-Est’ Finding on 80G Application.
In Mohammediya Educational Trust Vs ITO (Exemptions), the ITAT Bangalore considered an appeal against the order of the CIT(E), Bengaluru rejecting the assessee’s application in Form No. 10AB dated 27.03.2025 seeking approval under Section 80G of the Income Tax Act. The assessee trust had earlier obtained registration under Sections 12AA and 12AB and was also granted provisional approval under Section 80G. Its earlier application for final approval filed on 30.03.2024 was rejected by the CIT(E) on the ground that “fees collection” and “RTE fees” did not fall within the definition of donations under Section 80G. Subsequently, the assessee filed a fresh application on 27.03.2025. The CIT(E) rejected this second application as “non-est” and “void-ab-initio,” holding that the earlier rejection had attained finality because no appeal was filed before the ITAT. The CIT(E) further treated the fresh application as a collateral attack on a concluded decision.
