TIH Foundation For IOT AND IOE Vs CIT (Exemption) (ITAT Mumbai)
Summary:
The Income Tax Appellate Tribunal (ITAT) Mumbai set aside an order denying registration to TIH Foundation for IoT & IoE under Section 12AB of the Income Tax Act. The Commissioner of Income Tax (Exemption) had rejected the registration application due to the possibility of future overseas expenditure by the foundation. The ITAT held that such reasoning is untenable, emphasizing that denial of registration cannot be based merely on potential application of income outside India. Judicial precedents were relied upon, clarifying that only actual contravention and not the possibility of foreign activities can be a ground for rejection. The ITAT directed registration to be granted, finding the objectives and activities of the foundation genuine and in line with public interest.
The Facts of the Case
TIH Foundation for IoT & IoE, a Section 8 company established on 25 August 2020 by IIT Bombay and the Ministry of Science & Technology, Government of India, was set up under the National Mission on Interdisciplinary Cyber-Physical Systems (NM-ICPS). The foundation’s primary goal is the promotion of technology research and development with a focus on international collaboration for use in India, especially in sectors such as defence and agriculture. Having enjoyed registration under Section 12AB for earlier assessment years, the foundation sought renewal for Assessment Year 2025-26. However, the Commissioner of Income Tax (Exemption) rejected the renewal, citing the possibility that the foundation’s activities and expenditure could extend outside India, allegedly contravening provisions of Section 11 of the Act.
