SHREE MAHAVIR SWETAMBER MURTIPUJAK TAPAGACHHA JAIN GYAN MANDIR TRUST,MUMBAI vs. CIT (EXEMPTIONS), MUMBAI, MUMBAI

IN THE INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCH “D”, MUMBAI BEFORE SHRI CHALLA NAGENDRA PRASAD, JUDICIAL MEMBER And SHRI RAKESH KUMAR LODHA, ACCOUNTANT MEMBER ITA No.6439/MUM/2026

SHREE MAHAVIR CIT (EXEMPTIONS) SWETAMBER MURTHIPUJAK Room No.601, 6th Floor, TAPAGACHHA JAIN GYAN Vs. MANDIR TRUST Cumballa Hill, MTNL TE Building, Pedder Road, 328, katrak Road, Wadala Dr. G D Marg, West, Mumbai 400 031 Mumbai – 400 026 Maharastra. Maharashtra

Assessee Represented by : Shri A.L Sharma Revenue Represented by : Shri Sandeep Lakra CIT D.R. Date of Hearing : 16.09.2026 Date of Pronouncement : 18.09.2026 O R D E R PER : Shri Rakesh Kumar Lodha, Accountant Member: This appeal has been filed by the Assessee against an order dated 28-03-2026, by Ld. Commissioner of Income Tax (Exemptions)[Ld. CIT(E)] under Section 12AB(1)(b)(ii) and 80G of

ITA NO.6439-M-2026 SHREE MAHAVIR SWETAMBER MURTHIPUJAK TAPAGACHHA JAIN GYAN MANDIR TRUST the Income Tax Act, 1961,(in short ‘the Act’), for the assessment year 2026-2027.

ITA NO.6439-M-2026 SHREE MAHAVIR SWETAMBER MURTHIPUJAK TAPAGACHHA JAIN GYAN MANDIR TRUST of the Honorable Bombay High Court in the case of Chamber of Tax Consultants vs CIT (Exemptions), (2026) 184 Taxman.com 374 (Bombay). 4. The Assessee, being aggrieved by the conditional registration under section 12AB, is in appeal before the Tribunal. 5. Before us, the learned AR of the Assessee contended that the provisions of Section 12AB of the Act, do not empower the Ld.CIT(E) to grant registration subject to any condition, based upon a future contingency. The power conferred to Ld.CIT(E) under Section 12AB is limited to examining the objects, genuineness of the activities and compliance with other laws for achieving the objects of the trust. 6. Per contra, the Departmental Representative relied upon the order passed by the Ld. CIT(E). 7. We have carefully considered the rival submissions and perused the material available on the record, and observed that limited issue before us for adjudication is whether the Ld. CIT(E) was justified in imposing a condition while granting registration under Section 12AB(1)(b) of the Act to the Assessee. 8. At the outset, it is found that Ld. CIT(E) has not rejected the application for registration u/s 12AB and approval u/s 80G of the Act, filed by the Assessee. However, considering the application and

ITA NO.6439-M-2026 SHREE MAHAVIR SWETAMBER MURTHIPUJAK TAPAGACHHA JAIN GYAN MANDIR TRUST compliance material available on record, registration under Section 12AB of the Act and approval u/s 80G of the Act, have been granted to the Assessee. Therefore, the Ld. CIT(E) was satisfied by the compliances made by the Assessee. But, the applicability and consequential tax benefit of the registration / approval would remain restricted to subject to the outcome of the decision of the Hon’ble Supreme Court. The provisions for registration and approval do not confer the power to Ld.CIT(E) to grant registration/ approval by putting any condition based upon future contingency. 9. We find that an identical issue came up for consideration before the Co-ordinate Bench, ITAT, Mumbai, in the case Chandraprabhu Digamber Jain Mandir vs CIT(Exemptions), in case, ITA NO.4394/Mum/2026. Wherein also while granting the registration under Section 12A and approval under Section 80G, the Ld. CIT(E) imposed condition that the applicability and consequential tax benefits of such registration/approval would remain subject to the outcome of the decision of the Hon’ble Supreme Court. 10. The Co-ordinate Bench examined the legality of imposing any condition, while granting registration/approval, and held at para 16 that: “Section 12A empowers the Commissioner either to grant registration or to reject the application in accordance with the law. The statute does not 4

ITA NO.6439-M-2026 SHREE MAHAVIR SWETAMBER MURTHIPUJAK TAPAGACHHA JAIN GYAN MANDIR TRUST contemplate grant of conditional registration dependent upon a future event. Once registration is granted, the consequences flowing therefrom must follow in accordance with the provisions of the Act. Similarly, if at any future point of time circumstances arise warranting cancellation or withdrawal of the registration, the same can be done only in accordance with the statute provisions governing such action. The statute does not envisage an intermediate category whereby registration is granted but its efficacy is capped contingent upon the outcome of the future litigation. 18. Respectfully following the decision of the coordinate bench in ILLA Rajesh Foundation, read with the decision in Chamber of Indian Charitable Trusts and Bai Navajbai Tata Zoroastrian Girls School, we hold that the impugned condition contained in para 15 of the annexure to Form No. 10 AD cannot be sustained. 19. We accordingly direct deletion of the condition whereby the applicability and consequential tax benefit of the registration granted to the Assessee under Section 12AB(1)(b) of the Act were made subject to the outcome of the decision of the Supreme Court. The registration granted by Ld. CIT (E) shall operate in accordance with law without the aforesaid condition.

ITA NO.6439-M-2026 SHREE MAHAVIR SWETAMBER MURTHIPUJAK TAPAGACHHA JAIN GYAN MANDIR TRUST 3. Sisters of Charity of St. Anne vs. Commissioner of Income Tax (Exemptions), Mumbai, ITA Nos. 5920 and 5921/MUM/2026 12. In view of the facts of the instant case, it covered by the findings of the Hon’ble Bombay High Court in the case of Chamber of Tax Consultants (supra), and orders passed by co-ordinate bench of ITAT, we respectfully follow them and hereby hold that the registration granted under Section 12AB of the Act by Ld.CIT(E), shall operate without any stipulation, condition, or restrictions. Therefore, the impugned condition stands deleted. 13. Thus, the appeal filed by the assessee for registration/approval under Section 12AB of the Income Tax Act, 1961, is disposed of in the aforesaid terms. 14. In the result, appeal ITA No. 6439/Mum/2026 is allowed.

Order pronounced in the open court on 18.09.2026.

Sd/- Sd/- (CHALLA NAGENDRA PRASAD) (RAKESH KUMAR LODHA) JUDICIAL MEMBER ACCOUNTANT MEMBER

Mumbai, Dated: 18.09.2026. Sharath, Private Secretary.

ITA NO.6439-M-2026 SHREE MAHAVIR SWETAMBER MURTHIPUJAK TAPAGACHHA JAIN GYAN MANDIR TRUST

Copy to: The Appellant The Respondent The CIT, Concerned, Mumbai The DR Concerned Bench

//True Copy// By Order Dy/Asstt. Registrar, ITAT, Mumbai.