Irrevocability of Public Trusts - absence of an express clause does not bar 12AB registration; compelled form entry not false.

Whether absence of an express irrevocability or dissolution clause precludes registration under section 12AB was addressed by applying the statutory definition of revocable transfer and the Maharashtra Public Trusts Act cy-pres provisions to hold that silence in the deed does not render a public charitable trust revocable; outcome: lack of an explicit clause alone is not a valid ground to refuse registration or renewal. Whether an affirmative Row 6 entry in Form 10AB made under compulsion of a departmental utility constitutes furnishing false information was rejected on the basis that administrative compulsion cannot convert a compelled declaration into a specified violation under the Explanation to section 12AB(4).

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Issues: Whether the absence of an explicit irrevocability or dissolution clause in the trust deed/instrument is a valid ground for rejecting an application for registration or renewal under section 12AB of the Income-tax Act, 1961, and whether answering "Yes" to Row 6 of Form 10AB (regarding an irrevocability clause) in the absence of such an explicit clause can be treated as furnishing false or incorrect information constituting a specified violation under the Explanation below section 12AB(4).

Analysis: Section 12AB requires the Commissioner to be satisfied about the objects, genuineness of activities and compliance with other material laws; it does not expressly require an irrevocability clause in the instrument. The definition of "revocable transfer" in section 63(a) of the Income-tax Act, 1961, creates a statutory fiction and requires a positive provision for re-transfer or a specific right to re-assume power for a transfer to be revocable. Silence in the deed does not itself create a revocable transfer. The Maharashtra Public Trusts Act, 1950 (sections 22(3A), 22(3B) and 55) and the cy-pres mechanism prevent assets of a public charitable trust from reverting to the settlor on revocation or dissolution, and thus reinforce that public charitable trusts under the MPT Act are not revocable merely because the deed lacks an explicit irrevocability clause. Established judicial precedent and the Ministry of Finance's interpretation confirm that absence of a dissolution or irrevocability clause is not a ground for denying registration. The departmental online utility that forces a "Yes" response in Row 6 or prevents filing on "No" creates a procedural compulsion and cannot be used to treat a subsequently filed "Yes" as false information for the purposes of clause (g) of the Explanation below section 12AB(4). The Commissioner is required to examine the trust deed and form a satisfaction under section 12AB(1)(b); administrative convenience does not permit reading into the statute a condition that is absent.

Conclusion: The absence of an explicit irrevocability or dissolution clause in a trust deed is not a valid ground to reject registration or renewal under section 12AB of the Income-tax Act, 1961; a public charitable trust is deemed irrevocable by operation of law unless the instrument expressly reserves a power of revocation. Further, an applicant's affirmative response to Row 6 of Form 10AB, given under compulsion of the departmental utility in the absence of an explicit clause, shall not be treated as furnishing false or incorrect information constituting a specified violation under the Explanation below section 12AB(4), and shall not be used as a ground to deny registration.

Ratio Decidendi: A trust is not rendered revocable by the mere absence of an express irrevocability clause; for a transfer to be revocable under sections 60-63 of the Income-tax Act, 1961 the instrument must contain a positive provision enabling re-transfer or re-assumption of power, and administrative utilities forcing incorrect declarations cannot be used to penalise applicants under section 12AB.

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