Shri Hans Maharaj Trust Vs CIT (Exemptions) (ITAT Mumbai)
12AB Registration Can’t Be Denied on Technical Objections Alone: ITAT Mumbai Condones Delay & Restores Trust’s Case
Mumbai ‘ ITAT condoned a delay of 11 days in filing the appeal and set aside the order passed by the CIT(E) rejecting the Trust’s application for registration u/s 12AB.
The delay was explained by the Assessee on account of serious illness and hospitalisation of the authorised Chartered Accountant, supported by a discharge summary, which the Tribunal accepted as constituting sufficient cause.
On merits, the CIT(E) had rejected the application primarily on the ground that clause 3(e) of the objects clause allegedly permitted application of funds outside India, thereby violating section 11. The Trust clarified that it had never applied nor proposed to apply any funds outside India, and that the trust deed did not authorise such expenditure. It was also demonstrated that all requisite documents, including amended trust deed and activity details, were already placed on record.
The Tribunal observed that the rejection was premature and technical, without proper appreciation of the amended objects and supporting material. As the Revenue did not seriously oppose restoration, the ITAT held that interests of justice require a fresh examination.
Accordingly, the impugned order was set aside and the matter was restored to the file of the CIT(E) for de-novo adjudication after considering the amended trust deed and documents, and after granting due opportunity of hearing to the Assessee. The appeal was allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
