Visa Dishawal Bania Caste Trust Vs CIT (ITAT Mumbai)
The Income Tax Appellate Tribunal (ITAT), Mumbai, allowed the appeal challenging the order dated 31.12.2025 passed by the Commissioner of Income Tax (Exemptions), Mumbai, who had cancelled the appellant-trust’s registration under Section 12AB(4) of the Income Tax Act, 1961 with retrospective effect from 24.09.2021.
The appellant is a trust established in 1910 for the upkeep and maintenance of certain immovable properties as provided in the Trust Deed. According to the appellant, one of the Trust’s objects is to utilise the income from these properties for the benefit of the community, including social, religious and customary needs. The appellant further submitted that, although the primary object is the maintenance of the properties for the benefit of a particular community, this is incidental to the Trust’s broader public utility function. The Trust has existed since before the Income Tax Act, 1922.
The Trust was granted registration under Section 12A(1)(ac)(i) on 24.09.2021 for assessment years 2022-23 to 2026-27. During scrutiny assessment for assessment year 2023-24, the Faceless Assessing Officer made a reference under the second proviso to Section 143(3) for cancellation of the registration. The Commissioner (Exemptions) issued a show cause notice seeking documents including the Income and Expenditure Account, Trust Deed, a note on the Trust’s objects, and details of activities undertaken since assessment year 2022-23.
