ITAT Mumbai Dismisses Appeals as Infructuous After Grant of Section 12AB Registration and Section 80G Approval:

ITAT Mumbai Dismisses Appeals as Infructuous After Grant of Section 12AB Registration and Section 80G Approval The Income Tax Appellate Tribunal (ITAT) Mumbai has dismissed the appeals filed by the assessee as the Commissioner of Income Tax (Exemptions) granted registration under Section 12AB and approval under Section 80G, so the appeals filed against the rejection order could not be adjudicated anymore. The assessee is Bhaichand Mehta Charitable Trust and has filed Form No. 10AB and sought renewal of registration under Section 12AB of the Income Tax Act, 1961, along with the approval under Section 80G(5)(vi). During the scrutiny, the Commissioner of Income Tax (Exemptions) noticed that the trust deed did not contain an express clause relating to irrevocability and dissolution of the trust. The authority further observed that in Form 10AB the question regarding the existence of an irrevocability clause was answered as affirmative; no such clause was found in the trust deed. The CIT(E) considered that as furnishing of incorrect information and invoked Explanation (g) to Section 12AB(4), while rejecting the application for renewal of registration under Section 12AB by order dated 31 January 2026. Eventually, the application for approval under Section 80G(5)(vi) was also rejected on the ground that the benefit under Sections 11 and 12 was unavailable. Aggrieved by these orders, the assessee preferred appeals before the tribunal. Before the Tribunal, the assessee submitted that the applications under Section 12AB and Section 80G could not be rejected merely because the trust deed lacked an express irrevocability clause after referring to the decision of the Bombay High Court in The Chamber of Tax Consultants & Ors. v. CIT(E). According to the said judgement, the CIT(E) passed fresh orders on 18 April 2026 and granted registration under Section 12AB and approval under Section 80G to the assessee's trust. The Tribunal noted that once registration and approval have already been granted, the relief sought in the appeals gets satisfied, and the basis of the rejection orders no longer survives. Accordingly, ITA No. 3003/Mum/2026 and ITA No. 3004/Mum/2026 were dismissed as infructuous.