Charitable registration and Section 80G approval may be reconsidered when a supplementary trust deed removes the original objection.

A supplementary trust deed declaring the trust irrevocable in perpetuity can affect a rejection of charitable registration where the original objection was the absence of an irrevocability clause. Because that later deed had not been examined by the original authority, the matter required fresh verification rather than final rejection on the existing record. The approval under Section 80G, being consequential to the registration issue, also had to be reconsidered once the registration question was restored. The registration and approval matters were therefore remitted for fresh adjudication after verification of the supplementary deed.

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Issues: (i) Whether rejection of registration under Section 12A(1)(ac)(iii) of the Income-tax Act, 1961, could be sustained solely on the ground that the original trust deed did not contain an irrevocable clause, when a supplementary deed incorporating such clause was subsequently produced before the Tribunal. (ii) Whether rejection of approval under Section 80G of the Income-tax Act, 1961, required independent interference once the registration issue was set aside for verification.

Issue (i): Whether rejection of registration under Section 12A(1)(ac)(iii) of the Income-tax Act, 1961, could be sustained solely on the ground that the original trust deed did not contain an irrevocable clause, when a supplementary deed incorporating such clause was subsequently produced before the Tribunal.

Analysis: The Tribunal noted that the assessee produced a supplementary trust deed executed later, by which the trust was declared to be irrevocable in perpetuity. That document was not before the Commissioner when the original rejection was made. Since the fresh deed went to the very basis of the objection, the Tribunal held that the matter required verification at the level of the Commissioner rather than final determination on the existing record. The earlier appellate reliance placed on a different case was held distinguishable because, unlike that matter, the subsequent document here had not been examined by the original authority.

Conclusion: The rejection of registration was not finally upheld; the matter was set aside to the Commissioner for fresh consideration after verification of the supplementary deed.

Issue (ii): Whether rejection of approval under Section 80G of the Income-tax Act, 1961, required independent interference once the registration issue was set aside for verification.

Analysis: The rejection of approval under Section 80G was consequential to the refusal of registration under Section 12A. As the registration issue itself was restored for fresh examination, the approval issue also could not be finally sustained on the existing order and had to follow the same course.

Conclusion: The rejection of approval under Section 80G was also set aside and restored for fresh adjudication.

Final Conclusion: Both matters were remitted to the Commissioner for fresh consideration in accordance with law after verification of the subsequently filed trust deed, with the appeals treated as allowed for statistical purposes.

Ratio Decidendi: Where a newly produced trust deed or supplementary instrument removes the basis of the original objection to charitable registration, the appellate forum may restore the matter for verification rather than finally affirming the rejection, and consequential approval issues must follow the fate of the registration issue.

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