Discover Ekam Foundation Vs ITO (Exemptions) (ITAT Mumbai)
The Income Tax Appellate Tribunal (ITAT), Mumbai Bench, in the case of Discover Ekam Foundation Vs ITO (Exemptions), has restored the assessee’s application for Section 12AB registration back to the Commissioner of Income Tax (Exemptions) [CIT(E)] for fresh adjudication.
The assessee, a trust, had its application in Form 10AB for registration under Section 12AB rejected by the CIT(E) for the Assessment Year 2025-26. The sole ground for rejection was that the objects of the trust deed indicated an intention to apply funds outside India, which typically violates a condition for tax-exempt status in India.
Before the ITAT, the assessee contended that the CIT(E) rejected the application without providing sufficient opportunity of being heard. The assessee also presented new and revised evidence to the Tribunal, including a detailed affidavit confirming the application of funds for the promotion of international welfare and a revised copy of the Memorandum of Association (MoA), which had been filed with the Ministry of Corporate Affairs, indicating that the trust’s objects had been amended.
The ITAT, without ruling on the merits of the rejection, acknowledged that the assessee had presented documents showing a change in circumstances, specifically the amendment to the trust’s objects in the MoA. Recognizing that these documents required proper consideration by the CIT(E), the Tribunal deemed it appropriate to restore the matter to the CIT(E) for a fresh decision. The Tribunal directed the CIT(E) to duly consider the revised MoA and the detailed affidavit filed by the assessee and provide a reasonable opportunity of hearing.
