ENERGY SWARAJ FOUNDATION,MUMBAI V. COMMISSIONER OF INCOME TAX (EXEMPTION), MUMBAI, MUMBAI

ITA 6289/MUM/2024

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The Energy Swaraj Foundation, a non-profit organization focused on environmental preservation and climate change awareness, appealed against the decision of the Commissioner of Income Tax (Exemptions), which denied them registration under Section 12AB and Section 80G of the Income Tax Act, 1961. The initial denial was based on the foundation's objectives extending beyond India, which was deemed non-compliant with Section 11 of the Act. However, the foundation amended its Memorandum of Association to restrict its objectives to India only, and argued that it had not violated any provisions of the Act as it had not utilized funds outside India. The tribunal decided to remand the case for a fresh evaluation based on the amended documents.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 40919 (ITAT-MUMBAI)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-01-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: E
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: BISWANATH DAS
• Assessee Lawyers: RAJESH MEHTA; APURVA MEHTA
• Keywords: Period of limitation
• Section: 11; 12A; 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “E” BENCH, MUMBAI BEFORE MS. KAVITHA RAJAGOPAL, JM AND SMT. RENU JAUHRI, AM ITA No. 6287 & 6289/Mum/2024 (Assessment Year: NA) Energy Swaraj Foundation Flat No. 215, Eastern Business District Opp. LBS Road, Mumbai – 400078. Vs. Commissioner of Income Tax (Exemption) 601, 6th Floor, Cumballa Hill, MTNL, TE Building, Pedder Road, Dr. Gopal Rao Deshmukh Marg, Mumbai – 400026. PAN/GIR No. AAFCE5490A (Assessee) : (Respondent) Assessee by : Shri. Rajesh Mehta & Apurva Mehta Respondent by : Shri. Biswanath Das – CIT DR Date of Hearing : 28.01.2025 Date of Pronouncement : 29.01.2025 O R D E R Per Kavitha Rajagopal, J M: These captioned appeals have been filed by the assessee challenging the order of the learned Commissioner of Income Tax (Exemptions), Mumbai (‘ld. CIT(E)’ for short), passed u/s. 12AB and Section 80G of the Income Tax Act, 1961 (‘the Act'), vide order dated 28.09.2024. 2. As the facts are identical both these appeals, we hereby pass a consolidated order by taking ITA No. 6289/Mum/2024 as the lead case. ITA No. 6289/Mum/2024 ITA No. 6287 & 6289/Mum/2024 (A.Y. NA) Energy Swaraj Foundation, Mumbai 2 3. It is observed that the assessee has filed the present appeal with a delay of 3 days beyond the period of limitation for which the assessee has filed an application for condoning the said delay along with an affidavit. On perusal of the same, we deem it fit to condone the delay. 4. The assessee has challenged the order of the ld. CIT(E) in denying the registration u/s. 12AB of the Act on the ground that the objects of the assessee company extend to India and outside India which is against the provisions of the Act. 5. Briefly stated the assessee is a non-profit organization established for charitable purpose in the field of preservation of environment formed on 03/07/2019 with the primary objectives of creating awareness about the climate change, renewable energy and actions for climate corrections and other alleged activities. The assessee foundation has filed an application in form 10AB u/s. 12A(1)(ac)(iii) of the Act, for registration u/s. 12AB of the Act. The ld. CIT(E) observed that the assessee’s application was incomplete and had failed to furnish all the relevant documents. Notice dated 10.07.2024 was issued to the assessee requesting for furnishing documents as per Rule 17A(2) of the Income Tax Rules, 1962. The assessee had duly submitted the necessary documents and on perusal of the same, the ld. CIT(E) observed that the some of the objects of the trust deed are in violation of provision of Section 11 of the Act, where it has specified that the objects of the assessee company will extend to India and outside India. The ld. CIT(E) rejected the assessee’s application for registration u/s. 12A for the said reason vide order dated 28.09.2024. 6. Aggrieved the assessee is in appeal before us, challenging the impugned order. ITA No. 6287 & 6289/Mum/2024 (A.Y. NA) Energy Swaraj Foundation, Mumbai 3 7. We have heard the rival submissions and perused the materials available on record. The learned Authorised Representative ('ld. AR' for short) for the assessee contended that the only reason specified in the impugned order was due to the objects specified in the Memorandum of Association which extends within and outside India. The ld. AR further stated that the assessee has even undertaken to amend and correct the object clause of the MOA as per the requirement of Section 11 of the Act but the ld. AO proceeded to pass the impugned order rejecting the registration as the time limit for passing the order was getting time barred. The ld. AR further stated that the assessee had already amended the Memorandum of Association, where the object of the assessee company would only extend to India. The ld. AR prayed that since the assessee has complied with the requirements of the Act, registration u/s. 12A be granted to the assessee. 8. The learned Departmental Representative (‘ld. DR’ for short) for the revenue had nothing to controvert the same and relied on the order of the ld. AO. 9. In the above factual matrix of the case, it is observed that the only reason for denial of registration u/s. 12A of the Act was that the objects of the assessee company as per of Memorandum of Association was extended beyond India which was in violation of provision of Section 11 of the Act. It is pertinent to point out that the ld. AR brought out attention to the amended Memorandum of Association, where the same has been rectified as per the requirement of the Act. It is also observed from the submission of the assessee that the assessee company has not spent its fund till date outside India and has not violated the provision of Section 11 of the Act. ITA No. 6287 & 6289/Mum/2024 (A.Y. NA) Energy Swaraj Foundation, Mumbai 4 10. For the above reasons, we deem it fit to remand this issue back to the file of ld. CIT(E) to consider the application of the assessee afresh for registration u/s. 12A in terms of the amended Memorandum of Association and to decide the issue on the merits of the case and in accordance with law. 11. In the result, the appeal filed by the assessee is allowed. ITA No. 6287/Mum/2024 12. The finding recorded in ITA No. 4398/Mum/2024 for A.Y. 2017-18 shall apply mutatis mutandis to this appeal also. 13. In the result, both the appeals filed by the assessee is allowed for statistical purpose. Order pronounced in the open court on 29.01.2025 Sd/- Sd/- (RENU JAUHRI) (KAVITHA RAJAGOPAL) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated: 29.01.2025 Karishma J. Pawar (Stenographer) Copy of the Order forwarded to: 1. The Appellant 2. The Respondent 3. CIT- concerned 4. DR, ITAT, Mumbai 5. Guard File BY ORDER, (Dy./Asstt.Registrar) ITAT, Mumbai "