BOMBAY SOUTH KANARA BRAHMINS ASSOCIATION,MUMBAI V. CIT (EXEMPTION)_, MUMBAI

ITA 2515/MUM/2025

AI Insights

The case involves M/s. The Bombay South Kanara Brahmins Association, which appealed against the decision of the Commissioner of Income Tax (Exemptions) who had rejected their application for registration under section 80G(5) of the Income Tax Act, 1961. The rejection was primarily due to the trust deed's clauses that appeared to restrict the trust's benefits to a specific religious community, which is not permissible under the Act. The Assessee submitted a sworn affidavit promising to amend these restrictive clauses. The Tribunal, considering this undertaking, decided to remand the case for a fresh decision on the amended trust deed.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 713084 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: LEYAQAT ALI AAFAQUI; LD.
• Assessee Lawyers: HARIDAS BHATT; LD
• Keywords: Set aside; Opportunity of being heard
• Section: 80G

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “B”, MUMBAI BEFORE SHRI NARENDER KUMAR CHOUDHRY, JUDICIAL MEMBER AND SHRI OMKARESHWAR CHIDARA, ACCOUNTANT MEMBER ITA No.2515/M/2025 Assessment Year: [-] M/s. The Bombay South Kanara Brahmins Association, 273 Gokul, Gokul Lane Sion East Mumbai Maharashtra – 400 022 PAN: AAATB3525F Vs. Commissioner of Income Tax (Exemptions), ITO Wing 1(1), Room No.601, 6th Floor, Cumballa Hill, MTNL TE Building, Mumbai Maharashtra – 400 026 (Appellant) (Respondent) Present for: Assessee by : Shri Haridas Bhatt, Ld. A.R. Revenue by : Shri Leyaqat Ali Aafaqui, Ld. Sr. A.R. Date of Hearing : 09.07.2025 Date of Pronouncement : 28.07.2025 O R D E R Per : Narender Kumar Choudhry, Judicial Member: This appeal has been preferred by the Assessee against the order dated 27.03.2025, impugned herein, passed by the Ld. Commissioner of Income Tax (Exemptions) (in short Ld. Commissioner) u/s 80G of the Income Tax Act, 1961 (in short ‘the Act’). 2. In the instant case, the Assessee had sought for registration u/s 80G(5) of the Act by filing an application in form 10AB of the Printed from counselvise.com ITA No.2515/M/2025 M/s. The Bombay South Kanara Brahmins Association 2 Act on dated 30.09.2024, which was rejected by the Ld. Commissioner mainly on the reason that “the Assessee intends to apply funds for a particular religious community or caste/kanara and kasargode (Brahmin community) as per clause 3A or other such clauses (viz. 3(b), 3(d) and 3(f) which are in violation of the provision of section 13(1)(b) of the Act.” 3. The Assessee before us has filed a duly sworn affidavit for making necessary amendments in the trust deed to ensure that the benefits of the trust shall not be restricted to any specific religious community or caste and the charitable activities shall be open to the public at large without any discrimination. Said amendment shall be carried out in due course of time and would be submitted to the appropriate authorities including the office of the Commissioner of Income Tax (Exemption) or any such offices for necessary compliance or rectification or consideration. 4. Thus considering the undertaking by way of duly sworn affidavit dated 14.07.2025 filed by the Assessee, we are inclined to set aside the impugned order and consequently remanding the case to the file of the Ld. Commissioner for decision afresh, on modifying/amending the relevant restrictive clauses in the trust deed as objected to by the Ld. Commissioner, as appears in the impugned order and/or otherwise which violates the provisions of law and/or which supports/encourages the activities for particular caste or religion. Suffice to say, the Ld. Commissioner shall afford reasonable opportunity of being heard to the Assessee and 5. Thus, the case is remanded accordingly to the file of the Ld. Commissioner. Printed from counselvise.com ITA No.2515/M/2025 M/s. The Bombay South Kanara Brahmins Association 3 6. In the result, the appeal of the Assessee is allowed for statistical purposes. Order pronounced in the open court on 28.07.2025. Sd/- Sd/- (OMKARESHWAR CHIDARA) (NARENDER KUMAR CHOUDHRY) ACCOUNTANT MEMBER JUDICIAL MEMBER * Kishore, Sr. P.S. Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench //True Copy// By Order Dy/Asstt. Registrar, ITAT, Mumbai. Printed from counselvise.com "