{"id":52770,"date":"2025-04-09T17:14:24","date_gmt":"2025-04-09T11:44:24","guid":{"rendered":"https:\/\/itatonline.org\/digest\/dedhia-music-foundation-v-cit-e-mum-trib-www-itatonline-org\/"},"modified":"2025-04-09T17:14:24","modified_gmt":"2025-04-09T11:44:24","slug":"dedhia-music-foundation-v-cit-e-mum-trib-www-itatonline-org","status":"publish","type":"post","link":"https:\/\/itatonline.org\/digest\/dedhia-music-foundation-v-cit-e-mum-trib-www-itatonline-org\/","title":{"rendered":"Dedhia Music Foundation v. CIT( E) (Mum)( Trib ) www.itatonline.org ."},"content":{"rendered":"<p>The assessee is a non-profit organization, incorporated u\/s. 8 of the Companies Act, 2013 .The object of the company is to promote Indian heritage art such as Indian Classical music, Organize regular concerts and performances by renowned and emerging Indian classical musicians, Establish or support training school or institute to teach Indian classical music to students of all ages and skill levels, to Indian classical musicians to cover the costs of performance, travel, and recording, Organize festivals and conferences that bring together Indian classical musicians and scholars from around the world. \u00a0The assessee was initially granted provisional registration u\/s. 12AB as well as u\/s 80G of the Act on 29-01-2024 from AYs. 2024-25 to 2026-27.\u00a0 The assessee filed prescribed applications seeking permanent registration u\/s.12AB and 80G of the Act. Both the applications filed by the assessee were rejected by the Ld. CIT(E) on the ground that the objects of the assessee leave room for any future potential endeavour that may result in incurring expenditure outside India, which is in violation of S.11 of the Income tax Act, \u00a0secondly \u00a0the \u00a0activities claimed to have been done are not justified by the expenses incurred by the assessee. On appeal the \u00a0Tribunal held that the objects of the trust may contain clauses, which may enable a charitable trust or institution to apply its income for activities carried outside India , however \u00a0\u00a0such objects, if any, would \u00a0not enable the Ld CIT(E) to deny registration u\/s 12AB of the Act \u00a0Followed , <strong>Sarbat The Bhala Gurmat Mission Charitable Trust v. CIT(E) [2021] 127 taxmann.com 816 \/189 ITD 353 (Chd( Trib. <\/strong>). The Tribunal also held that provision of Section. 12AA is identical with the provisions of section. 12AB of the Act . Accordingly \u00a0the \u00a0\u00a0application of income of a charitable trust or institution outside India for carrying out its objects will not fall under any of the categories of <strong>\u201cspecified violation\u201d <\/strong>as mentioned in the Explanation to S.12AB(4) of the Act . Honourable \u00a0Tribunal \u00a0following the ratio in<strong> \u00a0\u00a0\u00a0MK Nambyar SAARF Law Charitable Trust\u00a0v.\u00a0UOI ( 2004) 269 ITR 556\/ 140 Taxman 616 ( Delhi)( HC) <\/strong>held that <em>\u00a0<\/em>\u00a0section 12AB does not refer the activities carried on \u00a0in India or out \u00a0side India \u00a0\u00a0. Order of CIT( E) denying the exemption and denial of exemption under Section 8OG\u00a0 \u00a0is set aside . As regards the genuineness \u00a0of the activities is concerned , the Tribunal admitted\u00a0 the additional \u00a0evidence and remanded to the CIT( E) to examine the issue in accordance with law \u00a0. \u00a0(ITA No. 743 \/ Mum\/2025 \/ 744\/Mum\/2025 \u00a0dt . 2-4 -2025 )<\/p>\n","protected":false},"excerpt":{"rendered":"<p> S. 12AB: Procedure for fresh registration &#8211; The object of the company is to promote Indian heritage art such as Indian Classical music, organize regular concerts and performances by renowned and emerging Indian etc  -Renewal of registration cannot be denied on the ground that the  objects of the trust may contain clauses, which may enable a charitable trust or institution to apply its income for activities carried outside India \u2013 Denial of registration and 80G exemption is set aside \u2013 On merit the matter is remanded to the CIT( E) to examine the genuineness of the activists.  [ S. 2(15) , 11(1)( c), 12A, 12AB , 80G , Companies Act, 2013 , S.8   ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-52770","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-dJ8","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52770","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=52770"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52770\/revisions"}],"predecessor-version":[{"id":52771,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/52770\/revisions\/52771"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=52770"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=52770"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=52770"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}