Bai Navajbai N. Gamadia Supplementary Charity Trust Vs CIT (Exemptions) (ITAT Mumbai)
The assessee filed two appeals against the Commissioner of Income Tax (Exemptions), Mumbai, challenging orders dated 14.02.2026 and 21.03.2026 denying registration under Section 12AB and approval under Section 80G of the Income-tax Act. The rejection was based on the ground that the trust deed did not contain an explicit clause stating that the transfer of property under the trust was irrevocable for all times.
No one appeared on behalf of the assessee despite notice. The Tribunal noted that, by subsequent orders dated 06.04.2026, the CIT(E) granted registration under Section 12AB and approval under Section 80G following the Bombay High Court decision in Chambers of Tax Consultants and Ors. vs. CIT(E) and Ors., (2026) 184 com 374 (Bom.), which held that a public charitable trust is deemed irrevocable by operation of law unless the trust instrument expressly provides a power of revocation. The High Court also directed the Revenue not to reject applications under Section 12AB solely due to the absence of an explicit irrevocable clause in the trust deed.
In view of the subsequent grant of registration and approval, the Tribunal held that both appeals had become infructuous and dismissed them.
