Mahasha Dharam Pal Charitable Trust vs. CIT (Exemption)

Parties Involved

Facts Summary

The assessee, Mahasha Dharam Pal Charitable Trust, filed an application for registration under section 12A of the Income Tax Act, 1961. The Trust was issued a questionnaire and notices to provide certain details and remove deficiencies, specifically the absence of an irrecoverable clause in the Trust Deed. Despite opportunities, the assessee failed to remove this deficiency. Consequently, the Commissioner of Income Tax (Exemption) rejected the application for registration under section 12A. The assessee appealed this decision to the Income Tax Appellate Tribunal. The Tribunal heard the arguments and reviewed the facts, concluding that the absence of an explicit irrevocability clause is not a valid ground for rejecting the registration application.…

Legal Issues

• 1. Whether the absence of an irrecoverable clause in the Trust Deed is a valid ground for rejecting the registration application under section 12A of the Income Tax Act, 1961?
• 2. Whether the rejection of the registration application under section 12A affects the approval under section 80G?

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

Similar Judgements

• Radisson India Charitable Foundation

  Delhi Bench ‘F’ New Delhi benchAY 2022-23Allowed

• Vivekananda Bhaba Samanway Kendra

  Kolkata Bench benchAY 2025-26Allowed

• ITA Nos.2412 & 2413/Bang/2024

  A Bench, Bangalore benchAY NAAllowed

• Dhanera Diamonds Ajbani Charitable Trust vs. The Commissioner of Income Tax (Exemption)

  Ahmedabad bench

• St. Judes Church Vs. CIT(Exemptions)

  Mumbai bench

• Chander Bhan Memorial Charitable Trust vs. Commissioner of Income Tax (Exemption), Delhi

  DELHI BENCH 'A', NEW DELHI benchAY 2025-26Allowed