Shri Meghji Ravji & Hansbai Meghji Rambhiya Public Charitable Trust Vs CIT (ITAT Mumbai)
Mumbai ITAT: Absence of Irrevocability Clause in Trust Deed Alone Cannot Justify Rejection of U/s 12AB Registration
The Mumbai ITAT held that registration under section 12AB cannot be denied merely because the trust deed does not contain an irrevocability or dissolution clause. The Commissioner (Exemptions) had rejected the trust’s application under section 12AB(4) solely on the ground that the trust deed lacked an irrevocability clause. The Tribunal observed that the issue was squarely covered by the Bombay High Court’s decision in Chamber of Tax Consultants and Others v. CIT (184 taxmann.com 374), which held that the absence of such a clause is not a valid ground for refusing registration under section 12AB. Following the binding jurisdictional High Court precedent, the Tribunal set aside the CIT(E)’s order and restored the matter for fresh consideration in accordance with the law laid down by the High Court. The assessee’s appeal was accordingly allowed for statistical purposes.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
This appeal is filed by the Assessee against the order of Ld. Commissioner of Income Tax (Exemption), Mumbai, [“Ld. CIT(E)”] dated 14.02.2026 in denying registration under section 12AB(4) on the ground that the assessee did not include irrevocable clause or dissolution clause in the trust deed.
