Amita Memorial Trust Vs CIT (Exemption) (ITAT Mumbai)
The CIT (Exemption) rejected the trust’s application for 12AB registration and 80G approval on two grounds:
- Absence of explicit irrevocability and dissolution clause in the Trust Deed
- Alleged false declaration in Form 10AB (answering “Yes” to irrevocability)
The ITAT decisively ruled in favour of the assessee by relying on the Bombay High Court judgment in Chamber of Tax Consultants case, holding:
- A public charitable trust is deemed irrevocable by law, unless expressly revocable
- No requirement under Section 12AB to have explicit irrevocability/dissolution clause
- Absence of such clause cannot be a ground for rejection
- Answering “Yes” in Form 10AB cannot be treated as false information, especially when the system forces such response
The Tribunal also noted:
- The trust was already registered earlier, and there was no change in facts or law
- Provisions of Maharashtra Public Trust Act ensure safeguards regarding application of funds
Accordingly, the ITAT:
- Quashed rejection of 12AB registration
- Directed grant of registration u/s 12AB
- Also directed grant of 80G approval (consequential)
The ruling firmly establishes that procedural technicalities or drafting gaps in trust deeds cannot override substantive eligibility for charitable registration
FULL TEXT OF THE ORDER OF ITAT MUMBAI
These appeals filed by the assessee are arising out of the orders of Id. Commissioner of Income-tax (Exemptions), Mumbai [CIT(E)] vide order nos. ITBA/EXM/F/EXM45/2025-26/1085262370(1) and ITBA/EXM/F/EXM45/2025-26/1085262397(1) both, dated 28.01.2026 u/s 80G and 12AB(1)(b)(ii) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).
