Irrevocability Clause Absence Cannot Defeat Section 12AB Registration: Bombay HC

By CA Sandeep Kanoi Income Tax Judiciary July 19, 2026

TaxGuru Citation: 2026 taxguru.in 8994
Case Name: Chamber of Tax Consultants Vs CIT (Exemptions) (Bombay High Court)
Appeal Number: Only available for paid members
Date of Judgement/Order: Only available for paid members
Courts: All High Courts, Bombay High Court

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Chamber of Tax Consultants Vs CIT (Exemptions) (Bombay High Court)

The petition was filed by The Chamber of Tax Consultants, the Bombay Chartered Accountants’ Society and several public charitable trusts registered under the Maharashtra Public Trusts Act, 1950 (MPT Act). The trusts had been enjoying registration under Sections 12A and 12AB of the Income-tax Act but their applications for renewal under Section 12AB were rejected by the Commissioner of Income Tax (Exemptions).

The rejection was primarily based on two grounds:

the trust deeds did not contain an express clause stating that the trusts were irrevocable or prescribing the manner of dissolution; and
the applicants had answered “Yes” in Row 6 of Form 10AB regarding the presence of an irrevocability clause because the online utility did not permit filing the form otherwise, which was treated by the Commissioner as furnishing false or incorrect information constituting a specified violation.

Procedural History

The petitioners challenged the rejection orders under Article 226 of the Constitution before the Bombay High Court and also sought relief for similarly situated charitable trusts.

Legal Issues

Whether absence of an express irrevocability clause or dissolution clause in a trust deed is a valid ground for refusing registration or renewal under Section 12AB.
Whether trusts could be treated as furnishing false information because of the mandatory response required in Row 6 of Form 10AB.
Whether the Commissioner could insist upon an express irrevocability clause as a condition for registration.

Relevant Statutory Provisions

Article 226 of the Constitution of India.
Sections 11, 12AB, 13, 60, 61, 63, 80G and 115TD of the Income-tax Act, 1961.
Sections 22(3A), 22(3B), 36A, 55 and 57 of the Maharashtra Public Trusts Act, 1950.
Section 78 of the Indian Trusts Act, 1882.
Section 332 of the Income-tax Act, 2025 (referred to by the parties).

Petitioners’ Submissions