TaxTMI 
TaxTMI 
2026 (7) TMI 949
X X X X Extracts X X X X
X X X X Extracts X X X X
....e order dated 28.05.2021 for a period of five years up to Assessment Year 2026-27. 2.1 During the subsistence of the aforesaid registration, the trustees passed a resolution on 28.01.2022 seeking modification of certain clauses of the trust deed, principally with a view to expressly incorporate and clarify objects relating to medical relief, which were hitherto being pursued under the broader object of advancement of general public utility. The amended trust deed received approval from the Charity Commissioner on 02.09.2024. Consequently, as required under Section 12A(1)(ac)(v) of the Act, the assessee filed an application on 24.12.2024 seeking approval of the modified objects. 2.2 The said application was rejected by the Ld. CIT(E) vide order dated 30.06.2025, and the registration of the assessee-trust was also cancelled, primarily on the grounds that: (i) the assessee had allegedly applied funds outside India for carrying out charitable activity outside India; (ii) its activities were purportedly intended to benefit a particular Marwadi community; and (iii) certain workshops, training programmes and allied activities did not constitute "education" within the meaning of the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....itutional activities in all its branches such as kindergarten, primary, secondary and high school and colleges, both of Indian and international curriculum, leading up to and teaching degree courses in Arts, Science, Commerce, Law, Management, Engineering, Medicine, Pharmacy, Music, Fine Arts, Architecture and such other educational subjects which are at large general public utility. We find that the payment to foreign education institution for expenses towards the charitable activities carried out in India cannot be disallowed. If such an interpretation is taken, then, no charitable hospital will be able to import any equipment, machinery or medicines from a foreign country. Considering, the National Education Policy, 2020 (supra) the students should get the knowledge in foreign education befitting for their future development. Jurisprudence Ohio University Christ College (supra), Gem & Jewellery Export Promotion Council (supra), J.N. Tata Endowment (supra) and Dedhia Music Foundation (supra) clearly establishes that the activities carried out by the assessee are wholly undertaken within India and any collaboration with international institutions is solely to support and promote a....
X X X X Extracts X X X X
X X X X Extracts X X X X
....aritable. Detailed examination of application of income u/s. 11 or violation u/s. 13 is beyond the scope of such proceedings. Courts have consistently held in Critical Art and Media Practices (supra) and Jamiatul Banaat Tankaria (supra) that even if certain applications of income are questioned, that would affect exemption in assessment and not registration. 24. In view of the above discussion, we hold that the rejection of the assessee's application for modification of objects and the consequential denial of registration u/s. 12AB is unjustified and bad in law. The impugned order of the Ld. CIT(E) is hereby set aside. The Ld. CIT(E) is directed to grant approval to the modification of the objects and continue the registration u/s. 12AB of the Act, subject to verification of procedural compliance." 2.4 Thereafter, since the original registration granted on 28.05.2021 was approaching expiry, the assessee filed an application dated 29.09.2025 under Section 12A(1)(ac)(ii) seeking renewal of registration under Section 12AB of the Act. 2.5 While considering the said application, the Ld. CIT(E) once again adverted to the very same allegations which had formed the basis....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pugned order by contending that the action of the Ld. CIT(E) was in violation of settled principles of judicial discipline. The Ld. Counsel for the assessee relied on the decision of the Coordinate Bench of Tribunal in the case of the assessee in ITA No. 4474/Mum/2025 dated 19.09.2025. It was submitted that once the Coordinate Bench had adjudicated the controversy and issued specific directions, the Ld. CIT(E) was duty-bound to faithfully implement the same unless the operation of the Tribunal's order had been stayed or suspended by a competent superior forum. The Ld. Counsel reiterated the submissions made during arguments in ITA No. 4474/Mum/2025 and contended that all issues concerning foreign remittances, alleged community preference and modification of objects already stood conclusively decided by the Tribunal in favour of the assessee and, therefore, could not have been reopened by the Ld. CIT(E). The Ld. Counsel submitted that issue of modification of the object have already been considered by the Tribunal (Supra) and held to be not in violation of the provisions of section 11 and 12 of the Act. 4. Per contra, the Ld. CIT-DR referred to the decision of the Coordinate ....