PRATIKSHA JHAWAR FOUNDATION,MUMBAI V. CIT(EXEMPTIONS), MUMBAI

ITA 5382/MUM/2024

AI Insights

The case involves the Pratiksha Jhawar Foundation, which appealed against the decision of the CIT (Exemptions) denying them registration under section 12AA of the Income Tax Act. The foundation, registered under section 8 of the Companies Act, 2013, is involved in providing nutrition to women from pregnancy until childbirth. The initial denial was based on the foundation's MOA, which included clauses that potentially allowed the application of funds outside India. After the denial, the foundation amended its MOA to remove these clauses. The tribunal decided to restore the matter to the CIT (Exemptions) to re-evaluate the application in light of the amended MOA.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 473415 (ITAT-MUMBAI)
• Duration Of Justice: 1 month(s) 14 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2024
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 27-11-2024
• Assessment Year: 2024-2025
• Appeal Filed On: 14-10-2024
• Laws Referred To: Companies Act 2013, Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R.A. DHYANI
• Assessee Lawyers: B MAHESHWARI
• Section: 13

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL, ‘C’ BENCH MUMBAI BEFORE: SHRI AMIT SHUKLA, JUDICIAL MEMBER & SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA No.5382/Mum/2024 (Assessment Year :2024-25) Pratiksha Jhawar Foundation B-4102, Plot No.77 B-Wng, One Avighna Park, Parel Mumbai-400 012 Vs. CIT(Exemptions),Mumbai Cumballa Hill MTNL TE Building Pedder Road Cumballa Hill Mumbai -400 026 PAN/GIR No.AALCP5173B (Appellant) .. (Respondent) Assessee by Shri B Maheshwari & Shri Neelesh Bajaj Revenue by Shri R.A. Dhyani, CIT DR Date of Hearing 27/11/2024 Date of Pronouncement 28/11/2024 आदेश / O R D E R PER AMIT SHUKLA (J.M): The aforesaid appeal has been filed by the assessee against order dated24/09/2024 passed by CIT (Exemption) denying the registration u/s.12AA. 2. Before us it has been stated that assessee is a foundation registered u/s. 8 of the Companies Act 2013 engaged in the social activity for providing necessary nutrition to women during ITA No.5382/Mum/2024 Pratiksha Jhawar Foundation 2 pregnancy till the month of the child birth. The ld. CIT (Exemptions) has denied the application and chose to grant registration stating that in the objects / MOA Point No. B(7), B(14), assessee intends to apply funds outside India. The relevant portion of the said clause of MOI noted in the order reads as under:- “The words in the object \"To enter into any arrangements for Indian/foreign collaboration. further studies and training in foreign countries.\" means to utilise the funds in and outside India. Such objects leave room for any potential future endeavour may be undertaken by the assessee trust with global or foreign body which would require expenditure outside India.” 3. Before us ld. Counsel submitted that it was categorically stated before the ld. CIT (E) that assessee has not incurred any expenditure outside India till date. However, the assessee has thereafter, passed a Board Resolution to amend the object clause of MOA and later on MOA has been altered following chronology of events have been given for the amendment of object clause of MOA which is as under:- Sr. No. Particulars Date 1 Board Resolution to amend object clause of MOA passed on 12-08-24 2 Special Resolution for the same passed in AGM on 18-09-24 3 CIT(Exemption) order rejecting registration u/s 12AB passed on 24-09-24 ITA No.5382/Mum/2024 Pratiksha Jhawar Foundation 3 4 Altered MOA e-filed vide Form No. INC - 13 on 28-09-24 5 Board Resolution passed for submitting GNL-1 & MGT -14 on 04-10-24 6 Filing of GNL -1 with MCA for taking approval regarding the amended clause from Central Govt. (Specially required for Sec. 8 Companies) 14-10-24 7 Approval of GNL - 1 by MCA 23-10-24 8 Post receipt of approval from Central Govt. Special Resolution passed in EGM on 24-10-24 9 MGT - 14 for filing of resolutions and agreements filed with Registrar on 24-10-24 10 Altered MOA re-submitted & e-filed vide Form No. INC - 13 on 24-10-24 11 Certificate issued by MCA certifying that the special resolution together with the altered MOA registered on 08-11-24 4. Since assessee has amended the object clause of MOA which was the basis for rejecting the application by the ld. CIT (E) therefore, in the interest of justice, we deem fit that this issue should be restored back to the file of the ld. CIT (E) to examine the amended / altered objects wherein this clause has been removed and grant liberty to the assessee to file application in this regard and then examine the same afresh on merits and in ITA No.5382/Mum/2024 Pratiksha Jhawar Foundation 4 accordance with law. Accordingly, the matter is restored back to the file of the ld. CIT(E). 5. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced on 28th November, 2024. Sd/- (GIRISH AGRAWAL) Sd/- (AMIT SHUKLA) ACCOUNTANT MEMBER JUDICIAL MEMBER Mumbai; Dated 28/11/2024 KARUNA, sr.ps Copy of the Order forwarded to : BY ORDER, (Asstt. Registrar) ITAT, Mumbai 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// "