Bombay HC Clarifies – Absence of Irrevocability Clause in the Trust Deed Cannot Justify Denial of Renewal of Charitable Trust Registration
Major Relief to Charitable Trusts for Renewal of Registrations – Bombay HC Strikes Down Extra-statutory Conditions for Section 12AB IT AcT
Charitable Trusts & Tax Practitioners – Renewal of Registrations – Section 12AB of the Income Tax Act
Bombay Chartered Accountants’ Society established in 1949
Rejection of applications of renewal of registrations mainly on two grounds that the trust deed did not contain a clause that the trust is “irrevocable and/or providing for the manner of dissolution”.
The answer to this question in online Form 10AB is treated as furnishing false or incorrect information” and specified violation under Section 12AB(4)(g) of the Act.
a plain reading of section 12AB of the Act reveals that the conditions for grant of registration are an objective satisfaction on the part of the Principal Commissioner regarding (i) the objects of the trust, (ii) the genuineness of its activities, and (iii) compliance with other material laws. The section does not contain any condition that the trust deed must have an explicit clause stating that it is irrevocable before registration is granted, and in our view, such a condition cannot be implied also.
Judgment dated 9.3.2026 of the High Court of Bombay in Writ Petition No.7587 of 2026 (OS) of The Chamber of Tax Consultants and others Vs. The Commissioner of Income Tax (Exemptions) and others
