SHREE SRIYADEVI MATHESHWARI CHARITABLE TRUST,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTION), MUMBAI

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ITA 2887/MUM/2026Status: DisposedITAT Mumbai24 September 2026AY 2026-275 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that registration under Section 12AB cannot be denied solely on the ground of absence of an explicit irrevocability clause, referencing a Bombay High Court judgment. The matter was restored to the CIT for fresh adjudication.

What were the facts?

The assessee trust applied for registration under Section 12AB, but the CIT (Exemptions) rejected the application. The grounds for rejection included alleged absence of an irrevocability clause and failure to furnish required documents.

What were the issues?

Whether the application for registration under Section 12AB can be rejected for the alleged absence of an irrevocability clause and for non-submission of certain documents.

Which sections of the Income-tax Act were involved?

Section 12AB,Section 12AA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES, MUMBAI

Before: SHRI SANDEEP GOSAIN & SHRI JAGADISH

Pronounced: 24.09.2026

PER SHRI SANDEEP GOSAIN, JUDICIAL MEMBER:

This appeal is filed by the Assessee against the order of Ld. CIT (Exemptions), MUMBAI vide DIN: ITBA/EXM/F/EXM45/2025- 26/1085260911(1) dated 28-Jan-2026 for the Assessment Year 2026-27. The Assessee has raised the following grounds of appeal:

1.

The learned CIT (Exemptions) erred in rejecting the application for registration under Section 12AB of the Income-tax Act, 1961 on the grounds that the applicant's Trust Deed

ITA 2887/MUM/2026 SHREE SRIYADEVI MATHESHWARI CHARITABLE TRUST

did not contain an irrevocability clause, despite the fact that the irrevocability clause is duly included in Page 6 of the Trust Deed.

2.

The learned CIT (Exemptions) erred in rejecting the application for registration under Section 12AB by relying on the failure to furnish a copy of prior registration under Section 12AA, even though the Trust had applied for registration under Section 12AB and had provided all relevant documents as required under the new regime.

3.

The learned CIT (Exemptions) erred in holding that the applicant failed to furnish necessary documentary evidence confirming the necessary steps for prior registration. under Section 12AA, when such documents were not requested or made clear during the application process.

4.

The learned CIT (Exemptions) erred in not considering the fact that the applicant had duly filed Form 10AB on 24.12.2021, which contained all the information required by law, including the irrevocability clause, and that any discrepancies were due to inadvertent errors in Form 10AB, which have now been clarified with the correct documents.

5.

The learned CIT (Exemptions) erred in rejecting the application without giving the appellant an opportunity to correct the minor discrepancies and clarify the presence of the irrevocability clause in the Trust Deed, which was clearly present on Page 6.

6.

The learned CIT (Exemptions) erred in rejecting the application under Section 12AB based on the alleged absence of a dissolution clause, when such a clause has been included in the Trust Deed or can be amended in accordance with the requirements of the Income- tax Act.

7.

The learned CIT (Exemptions) erred in invoking the provisions of Explanation (g) to Section 12AB(4) concerning false or incorrect information, without considering the full context and the fact that the discrepancies in the Trust Deed were clerical or inadvertent and were rectified promptly.

2.

We have heard the counsels for both the parties, perused the material placed on record, the judgments cited before us, and the order passed by the Revenue Authorities. From the records we noticed that the assessee had not filed the requisite documents before the Ld. CIT (E). Consequently, the

ITA 2887/MUM/2026 SHREE SRIYADEVI MATHESHWARI CHARITABLE TRUST application filed by the assessee was rejected on the ground of non- submission of the required documents.

3.

It was submitted by the Ld. AR that the assessee was in possession of all the requisite documents; however, due to a communication gap, the same could not be furnished before the Revenue authorities. In the absence of the requisite documents, the application filed by the assessee seeking registration was rejected.

4.

After hearing the Ld. representatives of both the parties and perusing the record, we find that the Ld. CIT (E) had rejected the application filed by the assessee seeking registration on, inter alia, the following grounds:

a. Alleged absence of an irrevocability clause in the Trust Deed; and

b. Alleged incorrect grant of registration for a period of five years by CPC, Bengaluru, instead of provisional registration for a period of three years under the amended provisions.

5.

In this regard, we find that the issue relating to the absence of an irrevocability clause now stands covered by the judgment of the Hon'ble Bombay High Court in Writ Petition No. 7587 of 2026, wherein the Hon'ble Court has held that registration under Section 12AB cannot be denied merely on the ground that the Trust Deed does not contain an explicit irrevocability and/or dissolution clause.

6.

Further, the assessee has sought to place on record certain documents which could not be furnished before the Ld. CIT (E). Be that as it may, without expressing any opinion on the merits of the grounds raised by the assessee, we are of the considered view that the matter requires 3

ITA 2887/MUM/2026 SHREE SRIYADEVI MATHESHWARI CHARITABLE TRUST reconsideration by the Ld. CIT (E), particularly in view of the judgment of the Hon'ble Bombay High Court in Writ Petition No. 7587 of 2026 (supra) and the additional documents which the assessee now seeks to furnish in support of its claim.

7.

Accordingly, the impugned order passed by the Ld. CIT (E) is set aside, and the matter is restored to the file of the Ld. CIT (E) for fresh adjudication in accordance with law and in the light of the observations made hereinabove.

8.

The Ld. CIT (E) shall provide a reasonable opportunity of being heard to the assessee and shall allow the assessee to place on record all requisite documents in support of its claim.

9.

Before parting, we make it clear that our decision to restore the matter to the file of the Ld. CIT (E) shall in no manner be construed as an expression of any opinion on the merits of the dispute. The Ld. CIT (E) shall adjudicate the matter independently and in accordance with law, after considering the submissions and documents furnished by the assessee.

10.

In the result, appeal filed by the assessee stands allowed for statistical purposes.

Order pronounced in the open court on 24.09.2026.

Sd/- Sd/- JAGADISH SANDEEP GOSAIN ACCOUNTANT MEMBER JUDICIAL MEMBER

ITA 2887/MUM/2026 SHREE SRIYADEVI MATHESHWARI CHARITABLE TRUST

Mumbai Dated: 24.09.2026 RY-SrPS

Copy to: SHREE SRIYADEVI MATHESHWARI CHARITABLE TRUST, 1ST FLOOR OFFICE NO 4 LEHRI 1 BUILDING 5TH KHETWADI LANE, MUMBAI-400004, MAHARASHTRA COMMISSIONER OF INCOME TAX (EXEMPTION), 2 EXEM. WARD 2(3) MUMBAI AAYKAR BHVAN MUMBAI, MUMBAI-400020, MAHARASHTRA 3 THE PCIT / CIT, 4 THE D.R., ITAT, MUMBAI BENCH 5 GUARD FILE

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