TaxTMI 
TaxTMI 
2026 (8) TMI 128
X X X X Extracts X X X X
X X X X Extracts X X X X
...., are that the assessee trust had applied for registration under section 12AB of the Act. The learned CIT (Exemption), vide order dated 28.03.2026, rejected the application primarily on the ground that the trust deed did not contain any specific clause declaring the trust to be irrevocable or providing that the trust property stood irrevocably dedicated for charitable purposes. According to the learned CIT (Exemption), in the absence of an express irrevocability clause, the assessee did not satisfy the statutory requirements contemplated under section 332(2)(v) of the Income Tax Act, 2025, and consequently the application for registration was liable to be rejected. Aggrieved by the aforesaid order, the assessee preferred the present appeal ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....other stakeholders were being informed that the registration and consequential benefits flowing therefrom would remain subject to the ultimate outcome of the proceedings before the Hon'ble Supreme Court. It is against these observations and caveats incorporated in the subsequent registration order that the assessee has preferred the present appeal. 5. Before us, the learned counsel submitted that once the jurisdictional High Court had conclusively settled the issue and the learned CIT (Exemption) had acted upon such binding directions by granting registration, no qualification or conditional rider could have been attached to the grant itself. It was submitted that the observations made by the learned CIT (Exemption) create an atmosph....
X X X X Extracts X X X X
X X X X Extracts X X X X
....haracter of such a judgment do not depend upon whether one of the parties proposes to challenge it before a superior forum. A contemplated appeal, a proposed Special Leave Petition or even a pending challenge before a higher court does not dilute the binding force of the judgment unless its operation is stayed, modified or reversed by a competent judicial authority. Therefore, once the learned CIT (Exemption) accepted the binding nature of the judgment of the Hon'ble Bombay High Court and proceeded to grant registration on that basis, it was not open to simultaneously dilute the effect of such grant by incorporating observations founded merely upon a possible future contingency. 8. We further find that the observations incorporated b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tions pursuant to which the registration has been granted. 10. We also note that an identical issue had come up before the Coordinate Bench in the case of IAA Rajesh Foundation vs. CIT (Exemption), vide order dated 15.05.2026, wherein the Tribunal observed that once registration has been granted pursuant to the binding judgment of the jurisdictional High Court, the authority cannot append qualifying observations based merely upon a proposed challenge before the Hon'ble Supreme Court. The Tribunal accordingly directed deletion of such caveats. The principle emerging from the said decision fully supports the assessee's grievance before us. 11. Having regard to the entirety of the facts and circumstances of the case, we are of th....