MAHARAJA SWAROOP SINGH CHARITABLE TRUST,CIRCUIT HOUSE ROAD, JODHPUR vs. COMMISSIONER OF INCOME TAX EXEMPTION, JAIPUR

ITA No. 557/Jodh/2025 is directed against the order dated 25.12.2024 passed by the learned CIT(E), whereby the assessee’s application in Form No. 10AB seeking registration under section 12AB of the Act was rejected and its provisional registration was also cancelled. This appeal was heard on 05.08.2026.

At the outset, it is noticed that the Registry has reported a delay of 12 days in filing ITA No. 557/Jodh/2025. The learned Authorised Representative (AR) submitted that the delay is short and prayed that the same may be condoned. The learned Departmental Representative (DR) raised no objection to the condonation of delay. Considering the shortness of the delay and there being no objection on behalf of the

The assessee has raised the following grounds of appeal in ITA No. 557/JODH/2025 :

The learned CIT(E) principally raised an objection with regard to the dissolution/irrevocability clause contained in the trust deed. The learned CIT(E) referred to clause 3(xiv) of the trust deed, which reads as under:

The learned CIT(E), inter alia, referred to non-furnishing of complete accounts for the relevant periods, supporting bills and vouchers for major expenses, details regarding donation paid, details of beneficiaries, bank account and transaction details and supporting evidence concerning the charitable activities stated to have been carried out by the assessee. On this basis, the learned CIT(E) held that the genuineness of the activities of the assessee could not be verified.

Accordingly, the learned CIT(E), vide order dated 25.12.2024, rejected the application seeking registration under section 12AB on the

During the course of hearing on 05.08.2026, the learned AR assailed the aforesaid findings of the learned CIT(E). He specifically drew our attention to clause 3(xiv) of the trust deed and submitted that the said clause adequately takes care of the contingency contemplated upon failure of the objects of the trust. It was submitted that the clause specifically mandates diversion of the funds dedicated to the trust only to “any other appropriate charitable purpose”. Thus, according to the learned AR, the funds or property dedicated to the trust cannot, in any eventuality, revert to the settlor or trustees or be appropriated for any private or non-charitable purpose.

The learned AR further submitted that the relevant details and documents had been furnished before the learned CIT(E). Our attention was drawn to the material placed in the paper book, which, inter alia, contains the reply submitted before the learned CIT(E), financial statements for financial years 2022-23 and 2023-24, registration certificate

Per contra, the learned DR relied upon the findings recorded by the learned CIT(E) in the impugned order.

We have heard the rival submissions and carefully perused the material available on record. The principal objection of the learned CIT(E) regarding the constitution of the assessee-trust is founded upon clause 3(xiv) of the trust deed. We have carefully considered the language employed in the said clause. The clause expressly provides that in the event of the stated object not succeeding, the funds dedicated to the trust are to be diverted “to any other appropriate charitable purpose.”

Thus, the trust deed does not permit the dedicated funds to be distributed amongst or revert to the settlor or trustees, nor does it permit

In our considered view, while examining the relevant clause of the trust deed, its substance and legal effect are required to be considered. The matter cannot be determined merely on the basis that the clause is not couched in a particular form of words. Clause 3(xiv), read in its proper context, restricts the destination of the funds to a charitable purpose. We are, therefore, unable to concur with the conclusion of the learned CIT(E) that the said clause, by itself, renders the constitution of the trust deficient or casts doubt upon its public charitable character.

As regards the second objection concerning the genuineness of activities, the record itself shows that the assessee had furnished before the learned CIT(E), inter alia, its trust deed, details of trustees, Form No. 10AC, registration certificate under the Rajasthan Public Trust Act, 1959, financial statements and income-tax returns. The paper book filed before us also contains documents relating to the activities undertaken by the

Having considered the material available on record in its entirety, and particularly the express stipulation contained in clause 3(xiv) restricting the utilisation of the dedicated funds to an appropriate charitable purpose, we are of the considered view that the reasons assigned by the learned CIT(E) are not sufficient to sustain rejection of the assessee’s application for registration. The objection regarding the dissolution clause proceeds on a restrictive reading of the trust deed, whereas the material regarding the charitable activities of the assessee was also available before the learned CIT(E).

In view of the foregoing discussion, we set aside the impugned order dated 25.12.2024 passed by the learned CIT(E) and direct the learned CIT(E) to grant registration to the assessee under section 12AB of the Act in accordance with law. Consequential effect shall also be

Accordingly, ITA No. 557/Jodh/2025 is allowed.

We shall now take up ITA No. 347/Jodh/2026, which was heard separately on 07.08.2026. This appeal arises from the subsequent application in Form No. 10AB filed by the assessee on 27.05.2025 seeking registration under section 12AB of the Act. The learned CIT(E), vide order dated 07.11.2025, rejected the said application. The impugned order specifically records that an earlier application of the assessee seeking registration under section 12AB had been rejected on 25.12.2024 on the grounds of discrepancy in the dissolution/irrevocable clause and non-genuineness of activities.

The learned CIT(E), in the subsequent proceedings, observed that the provisional registration granted to the assessee on 27.05.2021 had already been cancelled by the earlier order dated 25.12.2024. On this basis, the learned CIT(E) held that the subsequent application dated 27.05.2025 was not maintainable in the absence of a valid provisional registration. The learned CIT(E), without prejudice to the aforesaid

During the course of hearing on 07.08.2026, the learned AR submitted that the subsequent application dated 27.05.2025 was filed in the backdrop of rejection of the earlier application and cancellation of the provisional registration by the order dated 25.12.2024. It was submitted that once the earlier appeal, being ITA No. 557/Jodh/2025, is allowed and the learned CIT(E) is directed to grant registration under section 12AB of the Act, the subsequent appeal would not survive for independent adjudication and would become infructuous.

As already held in the preceding paragraphs, the order dated 25.12.2024 has been set aside and the learned CIT(E) has been

In the combined result, ITA No. 557/Jodh/2025 is allowed and ITA No. 347/Jodh/2026 is dismissed as infructuous.