DR HUKAMCHAND BHARILL FOUNDATION,MUMBAI V. COMMISSIONER OF INCOME TAX EXEMPTION, MUMBAI

ITA 4636/MUM/2025

AI Insights

The case involves Dr. Hukamchand Bharill Foundation, a charitable trust, appealing against the decision of the Commissioner of Income Tax (Exemption), who rejected their application for approval of funds under section 80G(5) of the Income Tax Act. The initial rejection was due to the trust's object clause stating the intention to run schools 'all over the world', which was not in compliance with the requirements for section 80G(5). The trust subsequently amended this clause to remove 'all over the world' and sought a reconsideration of their application. The Tribunal found that the activities of the trust were not in dispute and that the amendment to the object clause addressed the concerns raised by the CIT(E).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 775065 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 12 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 02-09-2025
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: E
• Assessment Year: misc
• Appeal Filed On: 21-07-2025
• Laws Referred To: Income Tax Act
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: HEMANSHU JOSHI
• Assessee Lawyers: BHUPENDRA SHAH

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE SHRI PAWAN SINGH, JUDICIAL MEMBER& SMT.RENU JAUHRI, ACCOUNTANT MEMBER ITA No. 4636/MUM/2025 (AY: 2025-26) (Physical hearing) Dr. Hukamchand Bharill Foundation 161-2A, Kalpataru Estate, JVL Road, Andheri East, Mumbai – 400092. [PAN: AACTD9227A] Vs Commissioner of Income Tax (Exemption), Mumbai Appellant / Assessee Respondent / Revenue Assessee by Shri Bhupendra Shah, CA Revenue by Shri Hemanshu Joshi, Sr. DR Date of Institution 21.07.2025 Date of hearing 02.09.2025 Date of pronouncement 02.09.2025 Order under section 254(1) of Income Tax Act PER PAWAN SINGH, JUDICIAL MEMBER; 1. This appeal by assessee is directed against the order of ld. CIT(E) dated 28.10.2024 for A.Y. 2025-26. The ld. CIT(E) rejected the application for approval of fund under section 80G(5) in his impugned order. 2. Rival submissions of both the parties have been heard and record perused. The learned Authorised Representative (ld. AR) of the assessee submits that assessee is a charitable-trust and having registration under section 12AB. The assessee applied for approval of fund under section 80G(5). The ld. CIT(E) rejected the application on the ground that one of the object of assessee trust is to run school within India and all over world. The assessee has amended its objects and clause by removing the word “all over world”. Thus, the ld. CIT(E) may be directed to reconsider the application of assessee afresh. The activities of assessee are not doubted by ld CIT(E). 3. On the other hand, the learned Senior Departmental Representative (ld. Sr. DR) for the revenue supported the order of ld. CIT(E). Printed from counselvise.com ITA No. 4636/Mum/2025 Dr. Hukamchand Bharill Foundation 2 4. We have considered the rival submissions of both the parties and find that the ld. AR of the assessee has made a very limited prayer for de novo consideration of his application under section 80G(5). The application of assessee under section 80G(5) was rejected on the ground that one of the object clause / memorandum of association consists “16. To organize and run schools under the affiliation and recognition of BSE, Odisha, CBSE and / or other Centre, State Board and non – governmental agencies within India and all over world”. Now before us, the ld. AR of the assessee has stated that they have rectified / amended their object clause, certified copy of memorandum of association / objects are filed before Tribunal. Therefore, considering the fact that activities of the assessee are not in dispute. Furthermore, the assessee is having registration under section 12AA/AB, and now the assessee has rectified its object clause, which was the sole basis for rejection of application of approval of funds. Hence, we deem it appropriate to restore matter back to the file of ld. CIT(E) for considering the application of assessee for approval of fund as afresh and to pass the order in accordance with law. 5. In the result, the appeal of the assessee is allowed for statistical purposes. Order was pronounced in the open Court on 02/09/2025. Sd/- RENU JAUHRI ACCOUNTANT MEMBER Sd/- PAWAN SINGH JUDICIAL MEMBER MUMBAI, Dated: 02/09/2025 Biswajit Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Mumbai; and (5) Guard file. By Order Assistant Registrar ITAT, Mumbai Printed from counselvise.com "