AMRUT BAUG CHARITY TRUST,AMRUT BAUG, BAJAJ ROAD vs. CIT (EXEMPTIONS), MUMBAI, CUMBALLA HILL MTNL TE BUILDING

ITA 7710/MUM/2026Status: DisposedITAT Mumbai08 October 2026AY 2026-276 pages
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What were the facts?

The assessee, Amrut Baug Charity Trust, filed an appeal against an order dated 06/04/2026 passed by the Commissioner of Income Tax (Exemptions), Mumbai (Ld. CIT(E)). The Ld. CIT(E) granted registration under Section 12AB(1)(b) of the Income-tax Act, 1961, for Assessment Years 2027-28 to 2036-37. However, the registration was made subject to certain conditions stipulated in an Annexure. The primary dispute concerns Condition No. 15, which made the registration and consequential tax benefits conditional on the outcome of a Special Leave Petition (SLP) proposed by the Revenue before the Hon'ble Supreme Court against a judgment of the Hon'ble Bombay High Court in the case of The Chamber of Tax Consultants & Ors. v. CIT(E). The assessee contended that once registration was granted in compliance with the High Court's binding judgment, it could not be made conditional on a proposed future appeal.

What did the Tribunal hold?

The Tribunal held that the condition imposed by the Ld. CIT(E), making the registration and consequential tax benefits subject to the outcome of the proposed Special Leave Petition/decision of the Hon'ble Supreme Court, cannot be sustained. The Tribunal reasoned that the Ld. CIT(E) was aware of the binding judgment of the Hon'ble Bombay High Court and granted registration in "respectful compliance" with it. Once a judgment is rendered by the jurisdictional High Court, it binds authorities within its jurisdiction unless stayed or reversed. The mere proposal by the Revenue to challenge the judgment does not dilute its binding character. The Tribunal found that by accepting the binding nature of the High Court's judgment and granting registration, the Ld. CIT(E) could not simultaneously make the registration's efficacy contingent on a proposed SLP, as this introduces uncertainty. The Tribunal directed the Ld. CIT(E) to expunge the conditional stipulation from the registration order. The registration granted under Section 12AB(1)(b) shall otherwise continue to operate in accordance with law and subject to statutory conditions. The direction is confined to expunging the impugned condition making the registration and benefits contingent on the proposed Supreme Court proceedings.

What were the issues?

1. Whether the Ld. CIT(E) erred in granting registration subject to the outcome of a Special Leave Petition to be filed by the Revenue before the Hon'ble Supreme Court against the judgment of the Hon'ble Bombay High Court in The Chamber of Tax Consultants & Ors. v. CIT(E)? (Question of law and fact, turning on Section 12AB(1)(b) of the Income-tax Act, 1961). Assessee's contention: The Ld. AR argued that once the Ld. CIT(E) granted registration following the binding judgment of the Hon'ble jurisdictional High Court, it could not impose a condition based on the outcome of a proposed SLP. The judgment of the Hon'ble jurisdictional High Court remains binding unless stayed or reversed by the Hon'ble Supreme Court. Therefore, the condition making the registration and benefits subject to the proposed proceedings should be expunged. Revenue's contention: The Ld. DR relied upon the order passed by the Ld. CIT(E).

Which sections of the Income-tax Act were involved?

Section 12AB(1)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, MUMBAI BENCHES, MUMBAI

Before: SMT. BEENA PILLAI, HON’BLE & SHRI JAGADISH, HON’BLE

Pronounced: 08/10/2026

PER SMT. BEENA PILLAI, JUDICIAL MEMBER:

Present appeal is filed by the assessee against the order dated 06/04/2026 passed by the Ld. Commissioner of Income Tax (Exemptions), Mumbai [“Ld. CIT(E)”] in Form No. 10AD, whereby registration has been granted to the as

The order continues below.

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