SARASWATI VIDYAK TRUST,MAHARANI BAGH vs. CIT(EXEMPTION), NEW DELHI

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH, G: NEW DELHI BEFORE SHRI VIMAL KUMAR, JUDICIAL MEMBER AND SMT. RENU JAUHRI, ACCOUNTANT MEMBER ITA No.- 3213/Del/2026 [Assessment Year: 2027-28] Saraswati Vidyak Trust, CIT(Exemption), G-6, Maharani Bagh, Civic Centre, New Delhi-110065. Vs New Delhi-110001. PAN- AABTS9805J Assessee Revenue Assessee by Shri R.S. Singhvi, CA & Shri Satyajeet Goel, Adv. Revenue by Shri Sher Singh, CIT(DR) Date of Hearing 01.07.2026 Date of Pronouncement 01.07.2026 ORDER Per Renu Jauhri, Accountant Member:

This appeal by the assessee is directed against the order the Ld. Commissioner of Income Tax (Exemption), Delhi [hereinafter referred to as the ‘Ld. CIT(E)] order dated 16.03.2026 passed u/s 12AB(1)(ac)(ii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) rejecting the application of the assessee filed in Form 10AB for grant of approval u/s 12A(1)(ac)(ii) of the Act. 2. The assessee has raised the following grounds of appeal:- 1

ITA No.- 3213/Del/2026 Saraswa� Vidyak Trust “1.1 That on the facts and circumstances of the case, the CIT(Exemption) has erred in rejecting the application for registration u/s 12AB of the Income-tax Act, 1961 without properly appreciating the documents already on record. 1.2 That there being no adverse finding or allegation regarding the genuineness of the activities/objects of the Appellant Trust, thus, the action of the CIT(E) in rejecting the registration for want of documents already on record is arbitrary and not sustainable in law. 2.1 That in any case, the absence of an irrevocability clause in the trust deed has been incorrectly treated as a ground for rejection of registration, without properly appreciating that in the case of a public charitable trust, irrevocability is presumed in law and need not be expressly provided in the trust deed and therefore the basis of rejection is unsustainable 2.2 That absence of an irrevocability clause cannot be a basis for denial of registration, as held in The Chamber of Tax Consultants & Ors. v. Commissioner of Income Tax (Exemptions) (Bombay High Court) and as such the action of the CIT(E) reflects a mechanical approach without proper application of mind. 3 That the order passed by the CIT(E) is illegal and not sustainable in law. 4 That the Appellant carves leave to add, amend, alter or forego any of the grounds raised in the memo of appeal.”

ITA No.- 3213/Del/2026 Saraswa� Vidyak Trust 3.1 However, vide order dated 16.03.2025, the application of the assessee was rejected on the ground that copy of registration u/s 12A prior to 1.4.2021, and financial statement for F.Y. 2024-25 were not submitted and trust deed did not contain the dissolution and irrevocability clause. 3.2 Aggrieved, the assessee has filed appeal before the Tribunal. 4. Before us, Ld. AR has submitted a copy of the Supplementary Trust Deed executed on 16.03.2026 and has further argued that there was no such mandatory requirement for registration. He has relied on the decision of the Hon’ble High Court of Bombay in the case of Chamber of Tax Consultants v. CIT(Exemption) [2026] 184 taxmann.com 374(Bombay), wherein it has been held as under: “Further, section 12AB did not contain any condition that trust deed must have an explicit clause stating that it was irrevocable before registration was granted - It was also noted that under MPT Act, even if a public trust was revoked, then assets/ properties of trust would never go back to settlor and would be disposed of and sale proceeds of same would be deposited in Public Trusts Administration Fund - Whether a public charitable trust was deemed irrevocable by operation of law unless instrument of trust expressly provided a power of revocation Held, yes Whether thus, absence of an explicit irrevocability clause would not be a ground for rejecting an application for registration or renewal under section 12AB Held, yes Whether thus, impugned order passed rejecting applications for registration under section 12AB was to be quashed and set aside - Held, yes”

He has further stated that a copy of registration issued in 2002 was filed, which was not considered by Ld. CIT(E) 4.2 On the other hand, the Ld. DR, strongly relied upon the order of CIT(E).

ITA No.- 3213/Del/2026 Saraswa� Vidyak Trust 5. We have heard the rival submissions and perused the material available on record. We note that the amended trust deed has been filed by the assessee incorporating the dissolution and irrevocability clause even though, there is no such requirement as held by the Hon’ble Bombay High Court in the case of Chamber of Tax Consultants vs. CIT(E) (supra). After considering the facts and circumstances, we deem it appropriate to restore the matter for fresh consideration on merits to the CIT(E), who will provide reasonable opportunity to the assessee to furnish requisite details. 6. In the result, appeal of the assessee is allowed for statistical purposes. Order pronounced in the open court on 01.07.2026.

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[VIMAL KUMAR] [RENU JAUHRI] JUDICIAL MEMBER ACCOUNTANT MEMBER Dated- 13.07.2026. Pooja. Copy forwarded to: 1. Assessee 2. Respondent 3. CIT 4. CIT(A) 5. DR

Asst. Registrar, ITAT, New Delhi,