Bai Manekbai a Dubash Hareshwar Pandit Trust Vs CIT (ITAT Mumbai)
The appeals were filed by the assessee trust against separate orders of the CIT (Exemption) concerning registration under Section 12AB and approval under Section 80G of the Income Tax Act, 1961. The appeals arose from connected proceedings concerning renewal of registration and approval and were heard together.
The assessee had applied for renewal of registration under Section 12AB and approval under Section 80G. By separate orders dated 15.04.2026, the CIT (Exemption) rejected both applications primarily because the trust deed did not contain an express clause declaring the trust irrevocable or providing that its property was irrevocably dedicated to charitable purposes. The CIT (Exemption) considered that, in the absence of such a clause, the statutory requirements referred to in Section 332(2)(v) of the Income Tax Act, 2025 were not satisfied. The assessee challenged the rejection in ITA No. 6034/Mum/2026.
During pendency of the appeal, the Bombay High Court considered the issue in Writ Petition (L) No. 7587 of 2026 in Chamber of Tax Consultants & Others vs. CIT (Exemption). The High Court held that a public charitable trust is presumed to be irrevocable by operation of law unless its trust instrument contains a specific provision permitting revocation. It further directed that applications for registration, renewal or approval should not be rejected merely because the trust deed does not contain an explicit irrevocability clause.
