TaxTMI 
TaxTMI 
2026 (9) TMI 1784
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....Act'). 2. The sole grievance of the assessee in these appeals relates to condition imposed by learned CIT(E) while granting registration under Section 12AB and approval under Section 80G of the Act. 3. We have heard the parties and perused the materials on record. 4. Briefly stated, the assessee, being a Charitable Trust, applied for registration under Section 12AB of the Act and approval under Section 80G of the Act. After receiving the application, learned CIT(E) called for various details. Upon verifying the details, learned CIT(E) being satisfied with the charitable objects of the assessee, granted registration under Section 12AB of the Act. However, while doing so, imposed the following condition in paragraph 15 of the order: ....
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....e 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." Even, while granting approval under Section 80G of the Act, learned CIT(E) imposed identical condition. 5. Before us, learned counsel for the assessee has submitted that learned CIT(E) is wholly without jurisdiction in granting registration and approval with such a condition. In support of such contention, he relied upon the following decisions: i. Chandraprabhu Digamber Jain Madir Vs. CIT (Exemption) ITA No. 4394/Mum/2026. ii. ILLA Raj....
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....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....
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....ion 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/recalled by the CIT only when there was express power vested in him under the Act to do so." 12. The Coordinate Bench in Chamber of Indian Charitable Trusts thereafter held that the Commissioner can exercise only those powers which are specifically conferred by the statute and cannot impose conditions which are not contemplated by the statutory provisions governing registration under section 12AB. 13. The Co-ordinate Bench inILLA Rajesh Foundation also relied upon th....
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....oordinate 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 therefrom must follow in accordance with the provisions of the Act. Similarly, if at any future point of time circumstances arise warranting cancellation or withdrawal of registration, the same can be done only in accordance with the statutory provisions governing such action. The statute does not envisage an intermediate category whereby registration is granted but its efficacy is kept contingent upon the outcome of future litigation. 17. In t....