TaxTMI 
TaxTMI 
2026 (7) TMI 1566
X X X X Extracts X X X X
X X X X Extracts X X X X
....onditional registration u/sec. 12A and u/sec. 80G of the Act respectively. Further, ITA No.4491 and 4488/Mum/2026 are related to the rejections of applications of registration u/sec 12A and u/sec 80G of the Act respectively. ITA No.4489 & 4490/Mum/2026 (conditional registration u/sec 12A & 80G) 3. The brief facts of the case are that the assessee is a charitable trust which had filed an application in Form No. 10AB under section 12A(1)(ac)(ii) of the Act seeking renewal of registration under section 12AB of the Act. During the course of proceedings, the Ld. CIT(E) observed that the documents accompanying the application for registration were incomplete. Accordingly, a notice under Rule 17A(2) of the Income Tax Rules, 1962 was issued calling upon the assessee to furnish the requisite documents. Upon verification of the trust deed and related documents, the Ld. CIT(E) noticed that the clause relating to "Irrevocable Trust" was absent in the trust deed. Admittedly, the said clause was not incorporated in the trust deed during the course of hearing before the Ld. CIT(E). Considering the aforesaid deficiency, the Ld. CIT(E), vide order dated 28.02.2026, rejected/cancelled the regi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....to the binding judicial directions of Hon'ble Bombay High Court. However, the applicant Trust, doner entities and other stakeholders are hereby informed, by way of abundant caution, that the applicability and consequential tax-benefits of this registration/approval w.e.f. 01.04.2026 onwards, remain subject to outcome of the decision of Hon'ble Supreme Court." 4. Further, related to ITA No.4490/Mum/2026 for approval of registration u/sec. 80G the Ld. CIT(E) had noted the observations in the impugned order in paragraph 5 which is reproduced as below: "5. contain In this case, the instrument of trust does not contain any explicit clause affirming that the transfer of property under trust is an irrevocable transfer for all times. Section 332(2)(b) of the Income Tax Act, 2025 inter-alia lays down that a public trust is eligible for registration, only if the trust properties are held for the benefit of the general public under an irrevocable trust. The date of commencement of Income Tax Act, 2025 is 1st April 2026 i.e the same date from which renewal of registration/approval has been sought by the applicant. Therefore, the eligibility conditions prescribed in the Stat....
X X X X Extracts X X X X
X X X X Extracts X X X X
....t that, the Commissioner of Income-tax is a quasi-judicial authority and can only exercise those powers which are expressly conferred upon him under the Act. Absent such explicit conferment, the Commissioner cannot be assumed to have any implied powers. In this regard, he placed reliance on the judgment of the Hon'ble Supreme Court in the case of Industrial Infrastructure Development Corporation vs. CIT (2018) (403 ITR 1), wherein the Court held that prior to the amendments made by the Finance (No. 2) Act, 2004 which conferred on the Commissioner the power to cancel registration, no such implied power could be inferred. The relevant extract of the judgment is as under- "21. In our considered opinion, the CIT had no express power of cancellation of the registration certificate once granted by him to the assessee under Section 12A till 01.10.2004. It is for the reasons that, first, there was no express provision in the Act vesting the CIT with the power to cancel the registration certificate granted under Section 12A of the Act. Second, the order passed under Section 12A by the CIT is a quasi judicial order and being quasi judicial in nature, it could be withdrawn/recall....
X X X X Extracts X X X X
X X X X Extracts X X X X
....le 17A that was placed before Parliament u/s 296 of the Act and not the Form. We note that there is no mention of conferring of power upon the Ld. CIT to stipulate conditions for granting registration in Rule 17A (already reproduced above) of the Rules. Hence, the contention of the Ld. CIT-DR, that the conditions stipulated at Sl No. 10 of Form 10AC had been placed and impliedly approved by the Parliament cannot be accepted. Even otherwise, if the said Form was indeed placed before the parliament, in view of Hon'ble Supreme Court decision in the case of Hukum Chand Vs UOI (supra), it cannot stipulate anything more than what is contained in the extant section/ provision of law as enacted by the Legislature [ie. in this case, Section 12AB of the Act]. We thus agree with the submissions of the Ld. Sr. counsel that the Ld. CIT(E) could not have been empowered to stipulate conditions while granting registration in Form 10AC, which is otherwise not expressly provided in provisions contained in Section 12AB of the Act." 6. The Ld. AR further, respectfully relied on Coordinate Bench of ITAT, Mumbai in the case of Bai Navajbai Tata Zoroastrian Girls School vs. CIT(E) reported in (202....
X X X X Extracts X X X X
X X X X Extracts X X X X
....pose precautionary or contingent conditions based upon a possible future outcome of litigation before a higher judicial forum. We respectfully follow the decision of the Coordinate Bench of ITAT, Mumbai in the case of Chamber of Indian Charitable Trust (supra) wherein it has been categorically held that neither section 12AB nor Rule 17A empowers the Ld. CIT(E) to impose conditions while granting registration. The Coordinate Bench further held that the prescribed Form No.10AC cannot enlarge or expand the scope of the substantive statutory provision enacted by the Legislature. We further find support from the decision of the Coordinate Bench in the case of Bai Navajbai Tata Zoroastrian Girls School (supra) wherein it was held that conditions imposed while granting registration, relating to future conduct of the trust or circumstances for cancellation, are merely advisory in nature and cannot be construed as legally enforceable conditions since the field is already occupied by specific statutory provisions. 9. In the present case, the registration and approval have admittedly been granted by the Ld. CIT(E). Therefore, once registration under section 12AB and approval under section ....