St. Francis. English School Vs CIT (ITAT Mumbai)
Section 12AB Registration Cannot Be Denied for Missing Irrevocability Clause Alone: ITAT Follows Bombay HC
The CIT(E) rejected registration u/s 12AB on the ground that the trust deed lacked an irrevocability/dissolution clause, treating it as a “specified violation.”
The ITAT relied on the Bombay High Court ruling in Chamber of Tax Consultants, which held that:
- Absence of an explicit irrevocability clause cannot be the sole ground for rejection,
- Answering “Yes” in Form 10AB despite absence of such clause does not amount to furnishing false information, and
- Authorities must decide applications on substantive compliance, not technical defects.
Accordingly, the Tribunal quashed the rejection order and restored the matter to the CIT(E) for fresh adjudication in line with High Court directions
FULL TEXT OF THE ORDER OF ITAT MUMBAI
The assessee has filed the present appeal against the impugned order dated 30/12/2025, passed by the learned Commissioner of Income Tax (Exemption), Mumbai, reamed CIT(E)”], rejecting the application filed by the assessee seeking registration u/s 12AB of the Income Tax Act, 1961 (“the Act”).
2. The solitary grievance of the assessee is against the rejection of its application for regularisation of registration u/s 12AB of the Act on account of the absence of an irrevocability clause in the trust deed.
