Sneha Manav Foundation Vs CIT (Exemptions) (ITAT Mumbai)
Absence of Irrevocability Clause Alone Cannot Defeat 12AB & 80G Registration – Mumbai ITAT Treats Appeals as Infructuous After CIT(E) Grants Registration Following Bombay HC Ruling
The Mumbai ITAT dismissed as infructuous the appeals filed by Sneha Manav Foundation after noting that the CIT(E) had subsequently granted registration u/s 12AB and approval u/s 80G in compliance with the Bombay High Court decision in The Chamber of Tax Consultants vs. CIT(E). The original rejection had been made solely on the ground that the trust deed allegedly lacked an irrevocability clause.
The assessee had challenged the rejection orders by contending that the trust deed and the Maharashtra Public Trusts Act already adequately governed dissolution and irrevocability aspects, and further argued that at the stage of registration, the CIT(E)’s enquiry is confined only to examining the objects of the trust, genuineness of activities and compliance with applicable laws.
During the hearing before the Tribunal, the assessee produced subsequent orders dated 16.04.2026 passed by the CIT(E), whereby registration u/s 12AB and approval u/s 80G had already been granted pursuant to the Bombay High Court ruling in The Chamber of Tax Consultants.
In view of these subsequent developments, the ITAT held that the original grievance against rejection of registration no longer survived for adjudication and therefore both appeals had become infructuous. However, the Tribunal clarified that dismissal of the present appeals would not prejudice the assessee’s right to separately challenge the later registration orders insofar as they imposed certain conditions while granting approval.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
