Jhaverbhai Patel Research Centre Vs CIT (Exemption) (ITAT Mumbai)
The appeal was filed by the assessee against the order dated 27.09.2025 passed by the Commissioner of Income Tax (Exemptions) [CIT(E)], rejecting the application in Form 10AB for grant of registration under Section 12AB of the Income Tax Act, 1961.
The CIT(E) had initially observed that the application was incomplete and sought documents under Rule 17A(2). Upon examination of the trust deed/MOA, it was noted that clauses 3(10), 3(12), and 3(16) permitted application of funds outside India, which was considered a violation of Section 11. Further, the trust had amended its objects pursuant to approval by the Charity Commissioner dated 29.11.2024. Under Section 12A(1)(ac)(v), the application was required within 30 days of such modification. The application, filed on 04.02.2025, was delayed by 38 days. Although the delay was condoned after the assessee explained that the order was received on 17.01.2025, the CIT(E) proceeded to examine other issues.
The CIT(E) found that the trust had incurred expenditure of Rs.2,00,000/- paid to Ms. Annushree Ajitkumar for studies at Washington University and St. Louis School of Medicine. It was held that such expenditure attracted Section 11(1)(c), as it was incurred outside India. The trust did not furnish approval from the Board as required under the proviso to Section 11(1)(c). Consequently, the CIT(E) concluded that the trust violated Section 11(1)(c) and rejected registration under Section 12AB.
