Global Council of Zoroastrians Trust Vs CIT (Exemptions) (ITAT Mumbai)
In Global Council of Zoroastrians Trust vs CIT(E), the CIT(E) rejected the trust’s application for final registration u/s 12AB and consequential approval u/s 80G on the grounds that objects allegedly indicated possible application of funds outside India and benefit to a particular religious community. The ITAT held that at the stage of registration, the authority must restrict examination to objects of the trust and genuineness of activities, and cannot deny registration based on hypothetical future violations. Relying on judicial precedents including Dawoodi Bohara Jamat, the Tribunal observed that issues relating to section 13 or application of income are matters for assessment stage and not for initial registration. Accordingly, the Tribunal set aside the orders of the CIT(E) and restored the matter for fresh consideration with direction to confine enquiry within statutory limits. Since rejection of 80G approval was consequential, that issue was also restored. Both appeals were allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT MUMBAI
1. These two appeals by the assessee are directed against separate but connected orders both dated 25.06.2025 passed by the Commissioner of Income Tax (Exemptions), Mumbai. In I.T.A. No. 4930/Mum/2025, the Ld. CIT(E) rejected the assessee’s application for final registration under Section 12A(1)(ac)(iii) read with Section 12AB of the Income-tax Act, 1961. In I.T.A. No.4928/Mum/2025, the Ld. CIT(E) rejected the assessee’s application for approval under section 80G(5) of the Act. Since the issue under section 80G is consequential to the decision under Section 12AB and the facts are common, both appeals were heard together and disposed of by this consolidated order.
