Aditya Birla Education Trust Vs CIT (Exemption) (ITAT Mumbai)
Foreign Exam Fees & Training Not Bar to 11 Exemption & Marwari Preference Clause No Violation of s.13(1)(b)- Registration Cannot Be Denied for Foreign Remittances Linked to Indian Education
Assessee, formed in 2009 & already enjoying valid registration till AY 2026-27, had amended its trust deed in 2022 to include specific objects relating to medical relief & filed an application u/s 12A(1)(ac)(v) seeking approval. CIT(E) rejected the application alleging violations u/s 11 & 13 on three counts-foreign remittances, preference to Marwari students, & inclusion of non-educational activities.
Assessee explained that foreign remittances were only for Cambridge & IB curriculum exam fees, training workshops & subscriptions, all directly linked to imparting education in India, without any campus abroad. Citing Ohio University Christ College (Karnataka HC), Gem & Jewellery Export Promotion Council (Mumbai ITAT), JN Tata Endowment (Mumbai ITAT) & Dedhia Music Foundation (Mumbai ITAT), it argued that payments made abroad for activities undertaken in India do not violate s.11(1)(a).
Tribunal agreed, noting that denial on this ground was misconceived, as even charitable hospitals import medicines & equipment from abroad for use in India. On the allegation of preference to Marwari students, the Tribunal observed that the trust deed only permitted preference to deserving Hindi-speaking or Marwari students without restricting benefits exclusively to them. Marwari, being an ethnolinguistic/regional group & not a religion, does not fall within the bar of s.13(1)(b). Data produced showed scholarships were widely distributed across communities. Relying on Ahmedabad Rana Caste Association (SC) & Dawoodi Bohra Jamat (SC), the Tribunal held that such preference does not amount to violation of s.13.
