Suraj Devi Charitable Trust Vs CIT (ITAT Delhi)
No Irrevocability or Dissolution Clause in Trust Deed? That Alone Cannot Defeat 12AB Registration: Delhi ITAT
Trust’s Registration and 80G Approval Rejected
In Suraj Devi Charitable Trust v. CIT(E) (ITA Nos. 6150 and 6151/Del/2026), the Delhi Income Tax Appellate Tribunal considered whether a charitable trust could be denied registration because its trust deed did not contain express irrevocability and dissolution clauses. The CIT(E) had rejected the trust’s application for registration and, as a consequence, its application for approval under section 80G. The Tribunal set aside both rejection orders.
The trust had previously held 12A registration and 80G approval. It applied in Form 10AB for registration under the new regime. During verification, the CIT(E) requested its audited financial statements for FY 2024–25, copies of earlier registration and approval, and clarification about the missing clauses in the deed.
The trust furnished the financial statements and earlier approvals. On the deed clauses, it maintained that their absence was not a statutory ground for refusing registration. The CIT(E) disagreed. Treating the absence of an irrevocability clause as a deficiency that the trust had not removed, he stated that verification of its activities, objects and commencement could not be completed. He rejected the application, while leaving the trust free to file afresh after removing the stated deficiencies.
