Your Neighbourhood Church Association Vs CIT (E) (ITAT Mumbai)
The appeal was heard by the Income Tax Appellate Tribunal against the order dated 25.08.2025 passed under Section 250 of the Income Tax Act, 1961 by the Commissioner of Income Tax (Exemption), Mumbai. The assessee challenged the rejection of its application for registration under Section 12AB of the Act.
From the records, it was noted that the application for registration under Section 12AB had been rejected on the ground that certain clauses of the trust deed—specifically clauses 3(g), 3(h), 3(i) and object (f)—were in violation of Section 11 of the Act, as they permitted application or receipt of funds outside India. The revenue authorities held that such provisions were not in conformity with the statutory requirements governing charitable institutions.
The assessee’s Authorised Representative submitted that the objectionable clauses had already been removed or amended in accordance with law. An application for approval of alteration in the Memorandum of Articles of Association under the Companies Act, 2013 was filed, and it was asserted that no activity involving utilisation of funds outside India had been carried out or proposed. On the other hand, the Departmental Representative relied upon the orders passed by the revenue authorities.
