Shri Gurudev Ashram Trust Vs CIT (ITAT Delhi)
The Income Tax Appellate Tribunal (ITAT), Delhi, allowed the assessee’s appeal for statistical purposes and set aside the order of the Commissioner of Income Tax (Exemptions) [CIT(E)] rejecting the trust’s application in Form 10AB for registration under Section 12A of the Income-tax Act.
The CIT(E) had rejected the application on the ground that paragraphs 17 and 18 of the trust deed did not specify whether the trust was revocable or irrevocable, nor did they provide for the transfer of the trust’s assets in the event of dissolution. Before the Tribunal, the assessee relied on the judgment of the Bombay High Court in The Chamber of Tax Consultants v. CIT (Exemption) & Ors., dated 9 March 2026. The High Court had held that a public charitable trust is deemed irrevocable by operation of law unless the trust deed expressly provides otherwise. It further held that the absence of an express irrevocability clause cannot be a ground for rejecting or refusing renewal of registration under Section 12AB, and that answering “Yes” in Form 10AB in such circumstances cannot be treated as furnishing false or incorrect information.
When confronted with this legal position, the Departmental Representative did not controvert the assessee’s submission.
