Irrevocability clause in trust deed not mandatory for 12AB registration and 80G approval, tribunal holds.

Absence of an express irrevocability clause in a public charitable trust deed is not, by itself, a valid ground to refuse registration or renewal under section 12AB or approval under section 80G, because such a trust is deemed irrevocable by operation of law unless the instrument reserves a power of revocation. The Tribunal also held that the answer given in Form 10AB could not be treated as false or incorrect merely because the utility required that declaration, so it did not amount to a specified violation. On that basis, the rejection of registration and approval was held unsustainable and was set aside.

---

---

Issues: Whether absence of an explicit irrevocability and dissolution clause in the trust deed, and the answer given in Form 10AB, could justify rejection of registration under section 12AB and approval under section 80G.

Analysis: The application for registration and renewal was rejected solely because the trust deed did not expressly state that the trust was irrevocable and did not contain a dissolution clause. The Tribunal noted that the jurisdictional High Court had already examined the same issue in detail and held that a public charitable trust is deemed irrevocable by operation of law unless the instrument expressly provides a power of revocation. On that basis, absence of an explicit irrevocability clause is not a valid ground to deny registration or renewal under section 12AB. The Tribunal also accepted that the response in Form 10AB could not be treated as false or incorrect information amounting to a specified violation when the utility itself compelled the declaration in that form.

Conclusion: The rejection of registration under section 12AB and approval under section 80G was unsustainable and was set aside in favour of the assessee.

---