EDULJI ALLBLESS BAUG,MUMBAI vs. CIT(EXEMPTION) MUMBAI, MUMBAI

INCOME TAX APPELLATE TRIBUNAL, MUMBAI BENCHES, MUMBAI BENCH: E

BEFORE HON’BLE SHRI AMIT SHUKLA, JUDICIAL MEMBER AND HON’BLE SHRI GIRISH AGRAWAL, ACCOUNTANT MEMBER ITA 3021/MUM/2026 िनधा�रण वष�/Assmt. Year: 2026-27 Permanent Account Number: PAN: AAATE0039M EDULJI ALLBLESS BAUG ALLBLESS BAUG 300-A RAJARAM CIT(EXEMPTION) MUMBAI MOHAN RAI MARG CHARNI ROAD Vs. MUMBAI - 400004 (��थ� Respondent) (अपीलाथ� Appellant)

िनधा�रती �ारा/Assessee represented Shri Vijay Shah, CA by: राज� व �ारा/Revenue represented Shri Hemanshu Joshi, Sr. DR by:

सुनवाई की तारीख / Date of conclusion of hearing: 08.06.2026 घोषणा की तारीख / Date of pronouncement: 08.06.2026 आदेश / ORDER PER GIRISH AGRAWAL, ACCOUNTANT MEMBER: This appeal is filed by the assessee against the order passed by the CIT(E), Mumbai vide DIN: ITBA/EXM/F/EXM45/2025- 26/1085311214(1) dated 29.01.2026 for the Assessment Year 2026-27 u/s. 12A r.w.s. 12AB of the Income-tax Act, 1961 (hereinafter referred to as the Act) .

1.1) The Learned CIT(Exemption) Mumbai erred in not granting of renewal of registration u/s 12AB. As per CIT(E) view non inclusion of irrevocability or dissolution clause in Trust Deed /MOA and specified violation as per explanation (9) to section 12AB(4) of the Income tax Act 1961, in spite of the fact the trust is established in 1869 and there is clear direction of permanent charitable work and trust is registered under Bombay Public Trust Act, 1950 which take care of the objection raised by the learned CIT(exemption) Mumbai 1.2) The trust has been granted registration by CIT(E) upto 31/03/2026. The rule of consistency is applicable. (Radhasoumi Satsang v/s CIT(SC) 1992 193 ITR 321/60 taxman 248) The Trust Registration be allowed to be renewed. 2.1) The learned CIT(exemption) erred in not considering the provision of Maharashtra Public Trust Act, 1950, which itself provides for the procedure to be followed if any trust wants to wind up or dissolve. 2.2) The Learned CIT(E) Mumbai ought to have considering the after the amendment inserted by Finance Act, 2016 w.e.f. 01/06/2016 the relevance of dissolution clause and the apprehension of the transfer of net asset to any other entities has been taken care by the said provision of section 115TD of the IT Act, 1961 (The view supported by Radisson India Charitable Foundation U/s ITO (exemption) 2025, 171 taxmann.com 845 Delhi Tribunal 2.3) The learned CIT(exemption) has failed to appreciate the legal position that even if there is absence of dissolution clause or condition as rightly contended by the assessee is on uncertain future event further properly vested in a public charitable trust it is always open to the concerned party including the revenue to approach the civil court for a remedy under section 91 and 92 of the code of civil procedure in these circumstances, the registration to the trust under section 12AA/12AB of the Act ought not to have been denied (this view is supported by CIT(E) Jaipur V/s Shri Narsinghji Ka Mandir (2020) 119 Taxmann.com 476(Rajasthan HC) 2.4) The CIT (Exemption ought to have considered the recognition of oral trusts under rule. 17A (2) (b) further demonstrates that Insistence on express clause is not a sine quanon( is not required at all). 3.1)The learned Commissioner of Income tax (exemption) erred in not considering the provisions of section 12AA(1)(b) after satisfying himself about the objects of the trust and genuineness of its activities and compliance of such requirements of any other law for the time being in force by the trust as are material for the purpose of achieving its objects. These are only requirement for the renewals of the registration under section 12AA/12AB of IT Act, 1961. 3.2) Other object of dissolution clause etc of CIT (Exemption) is relevant while assessing the income of the trust and not at the time of grant of registration under section 12AA of the IT Act 1961. (Shri Agarwal Panchayat v/s Income Tax officer WARD 3 Pali (2017) 88 Taxmann.com 370 (Jodhpur Tribunal). 3.3) The learned CIT(exemption) Mumbai has not raised any doubt on the object of the trust and genuineness of the trust and or violation of any other laws only without properly appreciating the fact the trust is permanent and trust is governed by the provision of section 115TD and Maharashtra Public Trust Act, 1950 the assessee was under honest and bonafide belief that trust is permanent and regarding dissolution clause the Maharashtra Public Trust Act will take care and hence the observation made by CIT(E) in para 3.2,3.3,4. are not proper and be deleted The trust be granted renewals u/s 12AB of IT Act, 1961. 3.4) Without prejudice to other grounds of appeal The Appellant (Trust) has taken steps to insert the clauses as required by the learned CIT( Exemption) Mumbai namely (a) The Trust is irrevocable.(b) Dissolution clause etc. The appellant trust has submitted letter for the guidance of the office of charity commissioner as well as to the office of CIT (Exemption) Mumbai the appellant has filed an affidavits clarifying the irrevocable nature of trust etc and with help of lawyer conversant with charitable trust work to frame scheme under. Section 50A of the Maharashtra public Trust Act 1950. In view of these the trust be granted registration u/s 12AA/12AB of IT Act 1961. 4) Violation of natural Justice & Doctrine of Equity :- Without prejudice other grounds of appeal The Learned CIT (Exemption) Mumbai has not given proper and reasonable opportunity. To cure technical issued raised by him. The CIT (Exemption) ought to have accepted and an affidavit & letter written to the charity commissioner and have ought to have granted the registration to the appellant. 5) The CIT (Exemption) ought to have renewed the registration of the appellant (Charitable Trust) i.e. for Non Inclusion of dissolution clause in the trust deed. In view of following "The Ministry stated in public account Committee 27th report in para 18 (May 2013) that in Mumbai & Gujarat. Bombay public Trust act 1950 ensure that no amount can go back to any founder etc because properties are transferred with the permission of the charity commissioner only to other trust having similar objects thus inclusion of dissolution clause in the deed is neither necessary nor legal in states where specific legislation bars such reversion."

“Re: Edulji Allbless Baug Re: Pan No: AAATE 0039 M Re: ITA No.1993/M/2026 Re: date of hearing 11th May 2026 Re: withdrawal of Appeal in view of Bombay High Court Direction above Trust has been granted renewal From A.Y. 2027-28 to 2036-37 As per instruction of the above named assessee trust.

i) The assessee trust has filed physical form appeal 26th February 2026 (ITA No. allotted 1993/M/2026) ii) The Assessee trust has filed online appeal on 18/03/2026 vide (ITA No. 3021/M/2026) whose hearing is fixed on 08/06/2026 in E Bench Now the appellant has got renewal for ten years i.e. from the A.Y. 2027-28 to 2036-37 as per Bombay recent High Court decision In view of above the appellant /assessee wants to withdraw the above appeal. We file his withdrawal letter. Thanking you very much..”

Order is pronounced in the open court on 08 June, 2026

Sd/- Sd/- (Amit Shukla) (Girish Agrawal) Judicial Member Accountant Member Dated: 08 June, 2026 MP, Sr.P.S.

Copy to: 1 The Appellant 2 The Respondent 3 DR, ITAT, Mumbai 4 Guard File 5 CIT BY ORDER,

(Dy./Asstt.Registrar) ITAT, Mumbai