BAI NAVAJBAI N GAMADIA SUPPLEMENTARY CHARITY TRUST,MUMBAI vs. CIT (EXEMPTIONS), MUMBAI

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ITA 3178/MUM/2026Status: DisposedITAT Mumbai19 June 2026AY 2027-283 pages

In favour of the Revenue: the assessee's appeal was dismissed. From the AI summary of this appeal.

AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeals had become infructuous due to the subsequent orders granting registration and approval. Therefore, the appeals were dismissed.

What were the facts?

The assessee trust was denied registration under Section 12AB and approval under Section 80G because the trust deed lacked an explicit clause affirming irrevocable transfer. However, the CIT(E) later granted these approvals based on a Bombay High Court ruling.

What were the issues?

Whether registration under Section 12AB and approval under Section 80G can be denied solely for the absence of an explicit irrevocable clause in the trust deed, and if subsequent approvals render appeals infructuous.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, MUMBAI

Before: SHRI CHALLA NAGENDRA PRASAD & SHRI MAKARAND VASANT MAHADEOKAR

For Respondent: Shri Vijay Kumar Soni, CIT-DR

PER CHALLA NAGENDRA PRASAD, J.M. These two appeals are filed by the assessee against separate orders of the learned Commissioner of Income Tax (Exemptions), Mumbai [“Ld. CIT(E)”], dated 14.02.2026 and 21.03.2026 in denying registration u/s 12AB and approval u/s 80G of the Act to the assessee trust.

2 ITAs No.3177 & 3178/Mum/2026

2.

In spite of issuance of notice, none appeared on behalf of the assessee, nor any adjournment was sought. Since the issue in the appeals has been considered by the Hon’ble Jurisdictional High Court in the case of Chambers of Tax Consultants and Ors. vs. CIT(E) and Ors., (2026) 184 taxmann.com 374 (Bom.), these appeals are disposed of after hearing the Ld. DR.

3.

On perusal of the record, we observed that the assessee filed appeals on 21.03.2026 in rejecting registration u/s 12AB and approval u/s 80G of the Act by the Ld. CIT(E) on the ground that the instrument of trust deed does not contain any explicit clause affirming that the transfer of property under trust is an irrevocable transfer for all times. However, it is observed that the Ld. CIT(E), subsequently, by orders dated 06.04.2026, granted registration u/s 12AB of the Act in view of the decision of the Hon’ble Bombay High Court in the case of Chambers of Tax Consultants and Ors. (supra), wherein the Hon’ble Jurisdictional High Court held that a public charitable trust is deemed irrevocable by operation of law unless the instrument of trust expressly provides a power of revocation. The Hon’ble High Court further directed the Revenue to refrain from rejecting applications for registration/renewal u/s 12AB solely on the ground of absence of an explicit irrevocable clause in the trust deed.

4.

Therefore, in view of the subsequent orders of the Ld. CIT(E) dated 06.04.2026 granting the assessee trust registration u/s 12AB and approval

3 ITAs No.3177 & 3178/Mum/2026

u/s 80G of the Act, these appeals filed by the assessee have become infructuous and are liable to be dismissed.

5.

In the result, both these appeals are dismissed as infructuous. Order pronounced in the open Court on 19/06/2026

- Sd/- Sd/- CHALLA NAGENDRA PRASAD MAKARAND VASANT MAHADEOKAR JUDICIAL MEMBER ACCOUNTANT MEMBER MUMBAI, DATED: 19/06/2026 Prabhat

Copy of the order forwarded to: (1) The Assessee; (2) The Revenue; (3) The PCIT / CIT (Judicial); (4) The DR, ITAT, Mumbai; and (5) Guard file. By Order

Assistant Registrar ITAT, Mumbai

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