SHRI RAM BHAKT SEWA NYAS,NEW DELHI vs. CIT(EXEMPTION), NEW DELHI

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ITA 3240/DEL/2026Status: DisposedITAT Delhi07 August 2026AY 2025-263 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the rejection solely on the ground of absence of an irrevocability clause is not sustainable, following the Bombay High Court's decision. However, the CIT(Exemption) was directed to examine other aspects like the genuineness of activities and charitable objects.

What were the facts?

The assessee's applications for registration under Section 12AB and 80G(5) were rejected by the CIT(Exemption) due to the absence of specific clauses regarding revocability and asset transfer upon dissolution in the trust deed. The assessee relied on a Bombay High Court judgment stating that a public charitable trust is deemed irrevocable by law.

What were the issues?

Whether the absence of an explicit irrevocability clause in the trust deed can be the sole ground for rejecting applications for registration under Section 12AB and 80G(5). Whether the CIT(Exemption) conducted a thorough verification of the trust's activities and objects.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI “G” BENCHES, NEW DELHI

Before: SHRI ANUBHAV SHARMA & SHRI MANISH AGARWAL

आयकर अपीलीय अिधकरण, िद�ी पीठ�, नई िद�ी INCOME TAX APPELLATE TRIBUNAL DELHI “G” BENCHES, NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI MANISH AGARWAL, ACCOUNTANT MEMBER ITA 3240 & 3241/DEL/2026 िनधा�रण वष�/Assessment Year: 2025-26) SHRI RAM BHAKT SEWA NYAS CIT(EXEMPTION) SHRI HANUMAN BALAJI MANDIR, E-2, CIVIC CENTRE, MINTO VIVEK VIHAR, PHASE-I, NEW Vs. ROAD DELHI-110095, DELHI NEW DELHI-110002, DELHI अपीलाथ� Appellant ��थ� Respondent

Permanent Account Number of Assessee: AADTS7883E

Shri Vinod Kumar Bindal, CA, अपीलाथ� �ारा/Appellant represented by: Shri Saurabh Sharma, Adv. & Ms. Rinki Sharma, ITP Shri Jadhav Shukracharya ��थ� �ारा/Respondent represented by: Krupacharya, CIT, DR सुनवाई की तारीख / Date of conclusion of hearing: 30-Jul-2026 घोषणा की तारीख / Date of pronouncement: 07-Aug-2026 आदेश / ORDER PER BENCH

The captioned appeals are filed by assessee against the separate orders dated 19.03.2026 passed by Ld. Commissioner of Income Tax (Exemption), Delhi [“Ld. CIT(E)”] rejecting the application for registration u/s12AB(1)(b)(ii)(B) and 80G(5) of the Income Tax Act, 1961 [“the Act”].

2.

Since both the appeals are against the rejection of applications filed u/s 12AB and 80G(5) of the act, thus they are taken together and decided by a common order.

ITA 3240 & 3241/DEL/2026 SHRI RAM BHAKT SEWA NYAS 3. At the outset, the learned Counsel for the assessee stated that the assessee’s application in Form No.10AB seeking registration under Section 12AB was rejected by the learned CIT(Exemption) for the reason that in the trust deed, there is no provision that the trust is revocable or irrevocable and how the assets of the trust are to be transferred in case of dissolution of the trust. Similarly the application in Form 10A for registration u/s 80G(5) was rejected. The learned Counsel stated that Hon'ble Bombay High Court in the case of The Chamber of Tax Consultants Vs. CIT(Exemption) & Ors. in Writ Petition (L) No.7587 of 2026, judgement dated 9th March, 2026, has held that a public charitable trust is deemed irrevocable by operation of law unless the trust deed expressly provides otherwise, and that absence of an explicit irrevocability clause cannot be ground for rejection of registration or renewal under Section 12AB and 80G(5) of the Act. It was further directed by the Hon’ble High Court that applications for registration under Section 12AB and u/s 80G(5) shall not be rejected solely on the ground of absence of an irrevocability clause and that answering “Yes” in Form 10AB in such circumstances cannot be treated as furnishing false or incorrect information.

4.

When these facts were confronted to the learned CIT-DR, he could not controvert the above factual aspect.

5.

Heard the contentions of both the parties and perused the material available on record. After going through the arguments of both the sides as well as the case law of Hon'ble Bombay High Court cited by the learned Counsel for the assessee in the case of The Chamber of Tax Consultants (supra) and also the order of learned CIT(Exemption), we noted that apart from irrevocability clause, learned CIT(Exemption) has not examined and has not carried out necessary verification in support of the genuineness of the activities, charitable objects and commencement of its activities. Hence, we set aside both the orders of learned CIT(Exemption) with a direction that he

ITA 3240 & 3241/DEL/2026 SHRI RAM BHAKT SEWA NYAS will not deny registration on the issue of irrevocability clause but, he can examine other aspects like genuineness of the activities, charitable objects and commencement of the activities, etc. In terms of the above, the orders of learned CIT(Exemption) are set aside and the matter are restored back to the file of learned CIT(Exemption) for deciding the same denovo after providing sufficient opportunity of being heard to the assessee. Accordingly, all Grounds of appeal raised by the assessee in both the appeals are allowed for statistical purposes.

6.

In the final result, both captioned appeals of the assessee in ITA Nos. 3240 & 3241/Del/2026 for Assessment year 2025-26 are allowed for statistical purposes.

Order pronounced in the open court on 07.08.2026. Sd/- Sd/- (ANUBHAV SHARMA) (MANISH AGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER Date- 07.08.2026 *Amit Kumar, Sr. P.S* Copy to: SHRI RAM BHAKT SEWA NYAS, SHRI HANUMAN BALAJI MANDIR, VIVEK 1 VIHAR, PHASE-I, NEW DELHI-110095 CIT(EXEMPTION), 2 E-2, CIVIC CENTRE, MINTO ROAD, NEW DELHI-110002, DELHI 3 THE PCIT / CIT, 4 THE D.R., ITAT, DELHI BENCH 5 GUARD FILE TRUE COPY ASSISTANT REGISTRAR / SR. PRIVATE SECRETARY I.T.A.T., DELHI 3

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