Case Law Details
Bai Navajbai N. Gamadia Supplementary Charity Trust Vs CIT (Exemptions) (ITAT Mumbai)
The assessee filed two appeals against the Commissioner of Income Tax (Exemptions), Mumbai, challenging orders dated 14.02.2026 and 21.03.2026 denying registration under Section 12AB and approval under Section 80G of the Income-tax Act. The rejection was based on the ground that the trust deed did not contain an explicit clause stating that the transfer of property under the trust was irrevocable for all times.
No one appeared on behalf of the assessee despite notice. The Tribunal noted that, by subsequent orders dated 06.04.2026, the CIT(E) granted registration under Section 12AB and approval under Section 80G following the Bombay High Court decision in Chambers of Tax Consultants and Ors. vs. CIT(E) and Ors., (2026) 184 com 374 (Bom.), which held that a public charitable trust is deemed irrevocable by operation of law unless the trust instrument expressly provides a power of revocation. The High Court also directed the Revenue not to reject applications under Section 12AB solely due to the absence of an explicit irrevocable clause in the trust deed.
In view of the subsequent grant of registration and approval, the Tribunal held that both appeals had become infructuous and dismissed them.
FULL TEXT OF THE ORDER OF ITAT MUMBAI
These two appeals are filed by the assessee against separate orders of the learned Commissioner of Income Tax (Exemptions), Mumbai [“Ld. CIT(E)”], dated 14.02.2026 and 21.03.2026 in denying registration u/s 12AB and approval u/s 80G of the Act to the assessee trust.
2. In spite of issuance of notice, none appeared on behalf of the assessee, nor any adjournment was sought. Since the issue in the appeals has been considered by the Hon’ble Jurisdictional High Court in the case of Chambers of Tax Consultants and Ors. vs. CIT(E) and Ors., (2026) 184 com 374 (Bom.), these appeals are disposed of after hearing the Ld. DR.
3. On perusal of the record, we observed that the assessee filed appeals on 21.03.2026 in rejecting registration u/s 12AB and approval u/s 80G of the Act by the Ld. CIT(E) on the ground that the instrument of trust deed does not contain any explicit clause affirming that the transfer of property under trust is an irrevocable transfer for all times. However, it is observed that the Ld. CIT(E), subsequently, by orders dated 06.04.2026, granted registration u/s 12AB of the Act in view of the decision of the Hon’ble Bombay High Court in the case of Chambers of Tax Consultants and Ors. (supra), wherein the Hon’ble Jurisdictional High Court held that a public charitable trust is deemed irrevocable by operation of law unless the instrument of trust expressly provides a power of revocation. The Hon’ble High Court further directed the Revenue to refrain from rejecting applications for registration/renewal u/s 12AB solely on the ground of absence of an explicit irrevocable clause in the trust deed.
4. Therefore, in view of the subsequent orders of the Ld. CIT(E) dated 06.04.2026 granting the assessee trust registration u/s 12AB and approval u/s 80G of the Act, these appeals filed by the assessee have become infructuous and are liable to be dismissed.
5. In the result, both these appeals are dismissed as infructuous.
Order pronounced in the open Court on 19/06/2026
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