DCIT Vs Heart Foundation of India (ITAT Mumbai)
Income Tax Appellate Tribunal (ITAT), Mumbai Bench, has rejected a rectification application filed by the Deputy Commissioner of Income Tax (DCIT) concerning its earlier order in the case of the Heart Foundation of India. The Revenue had contended that the Mumbai Bench lacked the territorial jurisdiction to hear the original appeal, arguing the matter should have been before the Pune Bench.
The dispute arose from the Principal Commissioner of Income Tax (PCIT), Central, Pune’s order dated March 6, 2023, which cancelled the registration of the Heart Foundation of India, a charitable trust registered under Section 12A of the Income Tax Act, with retrospective effect from Assessment Year 2016-17. The Trust, established in 1988 and granted Section 12A registration in 1989 by the CIT (Exemption), Mumbai, had its case centralised in Pune under Section 127 of the Act following a search action. For Assessment Year 2021-22, the Trust filed its return as an Association of Persons (AoP), citing reasons related to the COVID-19 pandemic for not applying for registration under the new Section 12AB.
The PCIT, Pune, initiated proceedings under Section 12AB after observing alleged violations by the Trust, including providing freebies to doctors, deemed a contravention of regulations. This led to the cancellation of the Trust’s registration.
