Vipassana Research Institute Vs CIT (ITAT Mumbai)
SECTION 12AB & 80G: A PROPOSED SLP IS NOT A STAY ORDER—CIT(E) CANNOT GRANT REGISTRATION WITH “TERMS & CONDITIONS APPLY LATER”
Registration granted—but relief kept in suspense
The CIT(E) granted the assessee renewal of registration u/s 12AB & approval u/s 80G(5). However, he attached special conditions to both orders.
Condition No. 15 in the section 12AB order recorded that the trust instrument did not contain an express clause declaring that the transfer of property to the trust was irrevocable for all times.
The CIT(E) referred to section 332(2)(b) of the Income-tax Act, 2025 & the Bombay High Court’s judgment in The Chamber of Tax Consultants & Ors. v. CIT(E) [2026] 184 taxmann.com 374 (Bom.).
Although registration was formally granted in compliance with that judgment, the CIT(E) recorded that the Revenue proposed to file an SLP before the Supreme Court. He therefore made the operation of the registration & consequential tax benefits from 01.04.2026 subject to the outcome of the proposed Supreme Court proceedings.
An identical qualification was inserted as Condition No. 5 in the approval granted u/s 80G(5).
Thus, the assessee received registration certificates—but with their tax efficacy placed under a future-litigation cloud.
