ILLA Rajesh Foundation Vs CIT (Exemptions) (ITAT Mumbai)
ITAT Mumbai held that the CIT(E) could not impose contingent or precautionary conditions while granting registration under section 12AB and approval under section 80G of the Income Tax Act. ILLA Rajesh Foundation had initially faced rejection of its applications because its trust deed did not contain an explicit “Irrevocable Trust” clause. Following the Bombay High Court decision in Chamber of Tax Consultants vs. Commissioner of Income Tax (Exemption), the CIT(E) granted conditional renewal under section 12AB and approval under section 80G, but stated that the applicability and consequential tax benefits from 01.04.2026 would remain subject to the outcome of a proposed Special Leave Petition before the Supreme Court. The Tribunal held that section 12AB does not confer such independent power on the CIT(E), while sections 12AB(4) and 12AB(5) separately provide statutory mechanisms for cancellation. Following the Coordinate Bench ruling in Bai Navajbai Tata Zoroastrian Girls School Vs CIT and the decision in Chamber of Indian Charitable Trust, the Tribunal directed the CIT(E) to delete/vacate the impugned conditions. ITA Nos. 4489/Mum/2026 and 4490/Mum/2026 were allowed, while ITA Nos. 4491/Mum/2026 and 4488/Mum/2026 were dismissed as infructuous.
ITAT Mumbai holds CIT(E) cannot make Section 12AB and 80G registration conditional on proposed Supreme Court challenge
Background and initial rejection of registration
A bunch of four appeals filed by ILLA Rajesh Foundation arose from orders of the Commissioner of Income Tax (Exemption), Mumbai, passed under sections 12A and 80G of the Act. The orders were dated 28.02.2026 and 04.04.2026.
