TaxTMI 
TaxTMI 
2026 (6) TMI 1516
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.... is subject to the outcome of the Department's special leave Petition to the supreme court against the order of the Bombay high court . 2. The learned commissioner of Income Tax (Exemption) failed to appreciate that - i. The trust is around 110 years old, traditionally there was no requirement to have the clause of "Irrevocable", in the trust deed. ii. The trust is registered under section 12A (a) of I.T Act vide Registration No. TR/4115 dated 22-01-1976. iii. The trust is registered under the Public Trust Act vide Registration No A 769 dated 29th December 1952 with Public Trust Registration office Gr. Bombay Registration. iv. The trust is managing Mandir as well as a medical diagnostic Centre having facilities of various doctors for specific area and arranging free eye cataract operation etc. etc. 3. The Appellants crave leave to add, amend, alter, and delete the ground/s of appeal at or before the hearing of appeal. 3. The relevant facts, as emanating from the order passed by the learned CIT(E), are that the assessee trust made an application before the learned CIT(E), seeking registration under section 12AB of the Act.....
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....itted that the assessee is a trust of about 110 years old. It was further submitted that the assessee manages a Mandir and also runs a medical diagnostic centre by providing facilities of doctors in different specialised areas and by arranging free eye cataract operations and other charitable activities. The learned AR further submitted that the learned CIT(E), after considering the application and material on record, has granted registration under section 12AB(1)(b) of the Act. Having granted registration, the learned CIT(E) could not have imposed a condition that the registration and consequential tax benefits would remain subject to the outcome of a proposed Special Leave Petition before the Hon'ble Supreme Court against the judgment of the Hon'ble Bombay High Court in the case of Chamber of Tax Consultants v. CIT(E), [2026] 184 taxmann.com 374 (Bom.). It was submitted that unless the judgment of the Hon'ble jurisdictional High Court is stayed, reversed or modified by the Hon'ble Supreme Court, the same is binding upon all authorities within the State of Maharashtra, including the learned CIT(E). 6. The learned AR further submitted that section 12AB does not e....
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....ity of the assessee stood recorded in favour of the assessee. The grievance of the assessee is confined to paragraph 15 of the annexure to Form No.10AD whereby, while granting registration, the learned CIT(E) observed that the applicability and consequential tax benefits of the registration would remain subject to the outcome of the decision of the Hon'ble Supreme Court. According to the assessee, such a condition is beyond the scope of section 12AB and beyond the jurisdiction vested in the learned CIT(E). 10. We find that an identical issue came up for consideration before the Coordinate Bench in the case of ILLA Rajesh Foundation v. CIT(E) in ITA Nos.4488 to 4491/Mum/2026. In that case also, while granting registration under section 12AB and approval under section 80G, the learned CIT(E) imposed a condition that the applicability and consequential tax benefits of such registration/approval would remain subject to the outcome of the decision of the Hon'ble Supreme Court. The Co-ordinate Bench examined the legality of such a condition and, while adjudicating the issue, relied upon the earlier decisions of the Coordinate Benches in Chamber of Indian Charitable Trusts v. P....
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....such guidance will not have any consequence unless and beyond what is specifically envisaged by the statute." 14. The Co-ordinate Bench ultimately held that: "To this extent, and in these terms, the legal effect of these conditions, as visualized in the conditional grant of registration, stands vacated. 15. After considering the aforesaid judicial precedents, the Coordinate Bench in ILLA Rajesh Foundation held that once registration under section 12AB is granted, the learned CIT(E) cannot keep the efficacy and consequences of such registration in a suspended or contingent state by linking them to a possible future outcome of litigation before a higher judicial forum. The Bench held that such a condition is dehors the scheme of section 12AB and beyond the powers conferred upon the learned CIT(E). 16. We find ourselves in complete agreement with the aforesaid view taken by the Coordinate Bench. Section 12AB empowers the Commissioner either to grant registration or to reject the application in accordance with law. The statute does not contemplate grant of a conditional registration dependent upon a future event. Once registration is granted, the consequences flowing ....