ITAT Mumbai Mandates Fresh Adjudication for Charitable Registration Following MOA Rectification

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) recently addressed a critical issue regarding the rejection of charitable registrations due to restrictive clauses in a trust's constitutional documents. In the case of Anantaru Foundation Vs CIT (Exemptions), the tribunal evaluated whether an assessee should be granted the opportunity to amend its Memorandum of Association (MOA) to remove clauses permitting overseas expenditure, thereby reviving its rejected registration applications.

Background of the Dispute

The assessee, incorporated as a Section 8 company on 25 April 2025, submitted Form 10AB to secure regular registration under Section 12AB of the Income-tax Act 1961. During the evaluation of this application, the Commissioner of Income Tax (Exemptions) [CIT(E)], Mumbai, identified specific provisions within the MOA that authorized the entity to apply or utilize its funds outside India.