Academy of Fine Arts & Crafts Vs CIT (Exemptions) (ITAT Mumbai)
No internet in border village can’t defeat charity registration: ITAT restores 12AB application of educational trust
Mumbai ITAT set aside the rejection of provisional registration u/s 12AB & restored the matter to the file of CIT(E) for fresh consideration. Assessee, a long-standing charitable trust established in 1963 & running multiple recognised educational institutions across Maharashtra & Ladakh, had applied for provisional registration in Form 10AC u/s 12A(1)(ac)(vi). CIT(E) rejected the application solely due to non-compliance with notices.
Tribunal noted that the General Secretary of the trust was stationed at the trust’s “Turtuk Valley School” in a remote Indo-Pak border region of Ladakh where no internet connectivity exists, a fact supported by a sworn affidavit. Holding that the explanation constituted a bona fide & reasonable cause & that rejection without granting effective opportunity violated principles of natural justice, ITAT directed CIT(E) to adjudicate the application afresh after granting adequate opportunity. Appeal was allowed for statistical purposes, without expressing any view on merits
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The instant appeal of the assessee was filed against the order of the Learned Commissioner of Income-tax (Exemption), Mumbai [hereinafter, “Ld.CIT(E)”] order passed U/s 12AB(1) of the Income tax Act, 1961 (for brevity, the “Ld. AO”), date of order 25/06/2025.
