Jito Bhavnagar Chapter Foundation vs. CIT(E)

Parties Involved

Facts Summary

The assessee, a company registered under section 8 of the Companies Act, 2013, was provisionally registered under sub-clause (vi) of clause (ac) of sub-section 1 of section 12A of the Act with effect from 02-10-2021 according to which the provisional registration was approved from A.Y. 2022-23 to A.Y. 2024-25. The assessee filed an application for registration u/s 12A(1)(ac)(iii) of the Act on 27-06-2023. Upon examining the assessee’s objectives and activities as described in its Memorandum of Association (MOA), the CIT(E) noted that many activities were focused on the welfare of the members of the association rather than the public at large. The CIT (E) found that the assessee’s activities appeared to be commercial and business-like in nature, rather than charitable. Objects 37, 38, and 43 of the MOA were particularly scrutinized by the CIT(E), revealing that the activities were geared towards the welfare and empowerment of the members, and thus not fully aligned with the broader public purpose required under Section 12A of the Act. The CIT (Exemption) referred to Section 13(3) of the Act, which prevents organizations serving the interests of particular persons, including members, from being granted charitable registration. The CIT (Exemption) rejected the application for registration under Section 12A of the Act and also cancelled the provisional registration that had been previously granted.…

Legal Issues

• 1. The order passed by the Ld. CIT (E) rejecting the Application filed in Form No.10AB u/s 12(1)(ac)(iii) of the Act is against law, equity & justice.
• 2. The Ld. CIT(E) has erred in law and facts in rejecting the application filed U/S 12A(1)(ac)(iii) of the Act stating that the objects of the Trust are only for the benefit/welfare/interest of the members.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

Similar Judgements

• Chardikala Foundation v. Commissioner of Income Tax (Exemptions)

  Amritsar bench

• Mahavar Sabha Rewari Vs. Commissioner of Income Tax Exemption Chandigarh

  Delhi Bench 'E', New Delhi benchAY 2023-24Allowed

• Amigos Prasasth Path Social Welfare Society vs. CIT (Exemption), Kolkata

  Kolkata Bench benchAllowed

• ITA No. 2190/DEL/2025

  Delhi Bench ‘A’, New Delhi benchAY 2023-24Allowed

• Samarth Child Care Foundation vs. CIT(E)

  Delhi Bench ‘G’ New Delhi benchAY 2024-25Partly Allowed

• Radisson India Charitable Foundation

  Delhi Bench ‘F’ New Delhi benchAY 2022-23Allowed