ITAT Mumbai: Scholarship to Students Abroad Not Violation – 12AB & 80G Registration Granted

Yogayatan Jankalyan Trust Vs CIT (Exemption) (ITAT Mumbai) In this case, the ITAT Mumbai set aside the rejection of registration u/s 12AB and approval u/s 80G by the CIT(E), which was denied on the ground that the trust granted scholarship to an Indian student pursuing education abroad, allegedly violating Section 11(1)(c). The Tribunal held that this reasoning was legally incorrect, relying on settled jurisprudence that scholarships granted to Indian students-even for education abroad-constitute application of income for charitable purposes in India. The crucial factor is that the beneficiary...