ROX FOUNDATION,WADALA, MUMBAI V. CIT EXEMPTIONS MUMBAI, MUMBAI

ITA 1992/MUM/2024

AI Insights

The case involves Rox Foundation appealing against the cancellation of its registration under sections 12AB and 80G of the Income-tax Act, 1961 by the Commissioner of Income-tax (Exemptions), Mumbai. The primary issue was the inclusion of clauses in the foundation's Memorandum of Association (MoA) that allowed for the application of funds outside India, which was not in compliance with the requirements for registration under the aforementioned sections. The Tribunal noted the assessee's willingness to amend these clauses and remanded the matter back to the CIT(E) for a decision in accordance with the law.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 41627 (ITAT-MUMBAI)
• Duration Of Justice: 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-10-2024
• Appeal Filed By: Assessee
• Order Result: Partly Allowed
• Bench Allotted: D
• Next Hearing Date: 15-10-2024
• Assessment Year: 2024-2025
• Appeal Filed On: 17-04-2024
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Department Lawyers: R.R. MAKWANA
• Assessee Lawyers: ASHITOSH HYBRID
• Keywords: Charitable institution
• Section: 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCH “D” MUMBAI BEFORE SHRI OM PRAKASH KANT (ACCOUNTANT MEMBER) AND MS. KAVITHA RAJAGOPAL (JUDICIAL MEMBER) ITA Nos. 1990 & 1992/MUM/2024 Assessment Year: 2024-25 Rox Foundation, 42A, First Floor, Impression House G.D Ambekar Marg, Mumbai-400031. Vs. CIT Exemption, 601, 6th floor, Cumbala Hill, MTNL TE Building, Peddar Road, Dr Gopalrao Deshmukh Marg, Cumballa Hill, Mumbai-400026. PAN NO. AAMCR 1671 D Appellant Respondent Assessee by : Mr. Ashitosh (Hybrid) Revenue by : Mr. R.R. Makwana, Sr. DR Date of Hearing : 15/10/2024 Date of pronouncement : 22/10/2024 ORDER PER OM PRAKASH KANT, AM These appeals by the assessee are directed against separate orders, both dated 18.03.2024, passed by the Ld. Commissioner of Income-tax (Exemptions), Mumbai [in short ‘the Ld. CIT(E)’] in relation to registration of the assessee trust u/s 12AB and registration u/s 80G of the Income-tax Act, 1961 (in short ‘the Act’) wherein the registration cancelled. 2. In the grounds raised, the assessee has sought for setting aside the order of the Ld. CIT(E 3. We have heard rival submission of the parties and perused the relevant material on re the registration of the assessee u/s 12AB and 80G of the Act mainly for the reason that the object clause scope of application of the funds beyond the country. The relevant finding of the Ld. CIT(E) registration u/s 12AB is reproduced as under : “3. On verification of the application in Form 10AB filed by the assessee, it was found that the application was not complete, and all the documents required to be accompanying the application were not furnished. Hence, a notice was issued to the applicant vid 24/1058708320(1) dated 13.12.2023 requesting the assessee to furnish the complete set of documents mentioned in Rule 17(2). The assessee has not filed its submission. Further, a reminder notice was issued to the app 24/1060056978(1) vide DIN & Notice No. dated 24.01.2024 requesting the assessee to furnish the complete set of documents mentioned in Rule 17A(2). The assessee has filed submission on 30.01.2024. On perusal of the submission o that in objects of the company as evident from the MoA the following discrepancy was observed. \"IlI(B) (xiii). To enter into any arrangement with any Government or authority, Indian or Foreign, municipal, local body or other public or quasipublic or any body corporate (xv). To enter in to partnership or any agreement for sharing, union of interest, joint ventures, reciprocal concession or ITA Nos. 1990 & 1992/MUM/2024 ein the registrations sought by the assessee have been In the grounds raised, the assessee has sought for setting aside the order of the Ld. CIT(E). We have heard rival submission of the parties and perused the relevant material on record. In the case, the Ld. CIT(E the registration of the assessee u/s 12AB and 80G of the Act mainly for the reason that the object clause of the assessee trust contained scope of application of the funds beyond the terrritory relevant finding of the Ld. CIT(E), registration u/s 12AB is reproduced as under : On verification of the application in Form 10AB filed by the assessee, it was found that the application was not complete, and all the documents required to be accompanying the application were not furnished. Hence, a notice was issued to the applicant vide DIN & Notice No. ITBA/EXM/F/EXM43/2023 24/1058708320(1) dated 13.12.2023 requesting the assessee to furnish the complete set of documents mentioned in Rule 17(2). The assessee has not filed its submission. Further, a reminder notice was issued to the applicant ITBA/EXM/F/EXM43/2023 24/1060056978(1) vide DIN & Notice No. dated 24.01.2024 requesting the assessee to furnish the complete set of documents mentioned in Rule 17A(2). The assessee has filed submission on 30.01.2024. On perusal of the submission on record, it is found that in objects of the company as evident from the MoA the following discrepancy was observed. \"IlI(B) (xiii). To enter into any arrangement with any Government or authority, Indian or Foreign, municipal, local body or other or quasipublic or any body corporate -----. (xv). To enter in to partnership or any agreement for sharing, union of interest, joint ventures, reciprocal concession or Rox Foundation 2 ITA Nos. 1990 & 1992/MUM/2024 sought by the assessee have been In the grounds raised, the assessee has sought for setting We have heard rival submission of the parties and perused the . In the case, the Ld. CIT(E) has rejected the registration of the assessee u/s 12AB and 80G of the Act mainly of the assessee trust contained terrritory of the while rejecting On verification of the application in Form 10AB filed by the assessee, it was found that the application was not complete, and all the documents required to be accompanying the application were not furnished. Hence, a notice was issued to the e DIN & Notice No. ITBA/EXM/F/EXM43/2023- 24/1058708320(1) dated 13.12.2023 requesting the assessee to furnish the complete set of documents mentioned in Rule 17(2). The assessee has not filed its submission. Further, a reminder licant ITBA/EXM/F/EXM43/2023- 24/1060056978(1) vide DIN & Notice No. dated 24.01.2024 requesting the assessee to furnish the complete set of documents mentioned in Rule 17A(2). The assessee has filed submission on n record, it is found that in objects of the company as evident from the MoA the \"IlI(B) (xiii). To enter into any arrangement with any Government or authority, Indian or Foreign, municipal, local body or other (xv). To enter in to partnership or any agreement for sharing, union of interest, joint ventures, reciprocal concession or otherwise with any person, company or firm (Indian or Foreign) carrying on or engaged in (xvii). To procure the Company to be registered or recognised in any part of the world. IV. The objects of the Company extend to the territories comprised in the Union of India and all other countries of the world. \" 4. Accordingly, showcause No. ITBA/EXM/F/EXM43/2023 13.02.2024 to the assessee, that why the application for registration should not be rejected. The assessee filed its submission on 21.02.2024. It is stated as under: \"It is a general clause entered to cover all the future donations if any received from foreign contributions to be received we shall first apply for a FCRA certificate for the Section 8 company...\" …………………… 5. As per provision of section 11(1) of the IT Act, 19 subject to the grant of registration is accorded to income i.e. applied for charitable purpose for India. The above referred clauses in your trust proposed to apply public charitable funds received beyond Indian Shores. In view of the same, t application for grant of registration is not maintainable and the same is rejected. 3.1 Before us, the Ld. counsel for the assessee submitted that assessee is willing to modify its object clause removing the relevant clause having scope for applicatio territory of the India. The Ld. counsel has filed a copy of such undertaking on record. In view of undertaking appropriate to restore the matter back to the file of the for examining the modified decide the issue of registration u/s 12AB as well as 80G of the Act in accordance with law. the appeals are accordingly allowed for statistical purposes. ITA Nos. 1990 & 1992/MUM/2024 otherwise with any person, company or firm (Indian or Foreign) carrying on or engaged in or --------- (xvii). To procure the Company to be registered or recognised in any part of the world. IV. The objects of the Company extend to the territories comprised in the Union of India and all other countries of the world. \" 4. Accordingly, showcause notice was issued vide DIN & Notice No. ITBA/EXM/F/EXM43/2023-24/1060878330(1) dated 13.02.2024 to the assessee, that why the application for registration should not be rejected. The assessee filed its submission on 21.02.2024. It is stated as under: s a general clause entered to cover all the future donations if received from foreign contributions to be received we shall first apply for a FCRA certificate for the Section 8 company...\" …………………… As per provision of section 11(1) of the IT Act, 1961 exemptions subject to the grant of registration is accorded to income i.e. applied for charitable purpose for India. The above referred clauses in your trust proposed to apply public charitable funds received beyond Indian Shores. In view of the same, t application for grant of registration is not maintainable and the same is rejected.” Before us, the Ld. counsel for the assessee submitted that assessee is willing to modify its object clause removing the relevant clause having scope for application of the income beyond the territory of the India. The Ld. counsel has filed a copy of such undertaking on record. In view of undertaking appropriate to restore the matter back to the file of the modified object clauses of the assessee and decide the issue of registration u/s 12AB as well as 80G of the Act in accordance with law. The grounds raised by the assessee in both the appeals are accordingly allowed for statistical purposes. Rox Foundation 3 ITA Nos. 1990 & 1992/MUM/2024 otherwise with any person, company or firm (Indian or Foreign) (xvii). To procure the Company to be registered or recognised in IV. The objects of the Company extend to the territories comprised in the Union of India and all other countries of the world. \" notice was issued vide DIN & Notice 24/1060878330(1) dated 13.02.2024 to the assessee, that why the application for registration should not be rejected. The assessee filed its s a general clause entered to cover all the future donations if received from foreign contributions to be received we shall first apply for a FCRA certificate for the Section 8 company...\" 61 exemptions subject to the grant of registration is accorded to income i.e. applied for charitable purpose for India. The above referred clauses in your trust proposed to apply public charitable funds received beyond Indian Shores. In view of the same, this application for grant of registration is not maintainable and the Before us, the Ld. counsel for the assessee submitted that assessee is willing to modify its object clause removing the relevant n of the income beyond the territory of the India. The Ld. counsel has filed a copy of such undertaking on record. In view of undertaking, we feel in appropriate to restore the matter back to the file of the Ld. CIT(E) of the assessee and decide the issue of registration u/s 12AB as well as 80G of the Act The grounds raised by the assessee in both the appeals are accordingly allowed for statistical purposes. 4. In the result, both the appeals statistical purposes. Order pronounced in the open Court on Sd/- (KAVITHA RAJAGOPAL JUDICIAL MEMBER Mumbai; Dated: 22/10/2024 Rahul Sharma, Sr. P.S. Copy of the Order forwarded to 1. The Appellant 2. The Respondent. 3. CIT 4. DR, ITAT, Mumbai 5. Guard file. //True Copy// ITA Nos. 1990 & 1992/MUM/2024 In the result, both the appeals of the assessee are allowed for nounced in the open Court on 22/10/2024. Sd/ (KAVITHA RAJAGOPAL) (OM PRAKASH KANT JUDICIAL MEMBER ACCOUNTANT MEMBER forwarded to : BY ORDER, (Assistant Registrar) ITAT, Mumbai Rox Foundation 4 ITA Nos. 1990 & 1992/MUM/2024 of the assessee are allowed for /10/2024. Sd/- OM PRAKASH KANT) ACCOUNTANT MEMBER BY ORDER, (Assistant Registrar) ITAT, Mumbai "