2026 (5) TMI 682

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....n filed by the assessee seeking registration u/s 12AB of the Income Tax Act, 1961 ("the Act"). 2. The solitary grievance of the assessee is against the rejection of its application for regularisation of registration u/s 12AB of the Act on account of the absence of an irrevocability clause in the trust deed. 3. We have considered the submissions of both sides and perused the material available on record. The assessee filed an application in Form 10AB u/s 12A(i)(ac)(iii) of the Act on 30.06.2025 seeking registration u/s 12AB of the Act. Upon perusal of the application filed by the assessee, the learned CIT(E) noticed that in response to the question in Para No.6 of the application, i.e., whether the assessee trust deed contains a clause....

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....plication for renewal of registration u/s 12AB of the Act due to the absence of the irrevocability clause in the trust deed. Since, similar to the present case, in the Writ Petitions before the Hon'ble High Court, the question in Para No.6 of the application was replied as 'Yes', the said reply was treated as furnishing 'false or incorrect information', considering the same to be "Specified Violation" in terms of Explanation (g) to Section 12AB(4) of the Act. Vide its judgment dated 09.03.2026, the Hon'ble Jurisdictional High Court, in the aforesaid case, allowed all the Writ Petitions and passed the following directions: - "46. In the result, the Writ Petition is allowed. Due to the peculiar facts, as presented by the Petitioners,....

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....hat once registration under section 12AB is denied, registration under section 80G also cannot be granted, are also hereby quashed and set aside. This would, of course, apply only to a case where registration under section 12AB has been rejected on the grounds discussed above. The above order that we pass is to avoid any multiplicity of litigation so as to not require the trusts to challenge the orders passed by Respondent No. 1 denying registration under section 12AB and 80G of the Act on the grounds as discussed in this order. (viii) Respondent No.1 shall decide the applications of the Petitioners and all other similarly situated trusts, whose orders are hereby quashed, afresh and in accordance with the law and the ratio laid dow....