ORDER

Per Smt. Beena Pillai, JM:

The present appeal filed by the assessee arises out of the order dated 27/12/2025 passed by the Learned Commissioner of Income Tax (Exemptions) [hereinafter the “Ld.CIT(E)”].

2. Brief facts of the case are as under:-

The assessee is a public charitable trust formed on 7/07/1995 and was granted registration under section 12A of the Act, with effect from 01/04/1998. The said registration continued to remain in force. Pursuant to the amended provisions of the Act, the assessee filed an application in Form No.10AB on 29/05/2025 before the Ld.CIT(E) seeking renewal of its registration under section 12AB of the Act.

2.1. Ld.CIT(E) rejected the application on the ground that the trust deed/Memorandum of Association does not contain clause relating to irrevocability or dissolution, and treated the same as a specified violation within the meaning of Explanation (g) to section 12AB(4) of the Act. Consequently, the Ld.CIT(E) refused to grant approval and proceeded to cancel the existing registration of the assessee.

Aggrieved by the said action of the Ld.CIT(E), the assessee is in appeal before this Tribunal.

3. The Ld.AR submitted that, the assessee duly filed its application in Form No. 10AB along with all requisite documents as prescribed under Rule 17A(2) of the Income-tax Rules. Referring to the specific requirements enumerated in clauses (a) to (h), the Ld.AR submitted that the assessee substantially complied with all applicable conditions.

3.1. It was submitted that the assessee was created by way of a duly executed trust deed and, therefore, the requirement under clause (a) stood satisfied by furnishing a self-certified copy of the trust deed. Further, the assessee is a registered public charitable trust and had already placed on record the registration certificate issued by the competent authority, thereby complying with clause (c). The Ld.AR submitted that the assessee is not governed by the provisions of the Foreign Contribution (Regulation) Act, 2010, and therefore clause (d) is not applicable to the facts of the present case. With regard to clause (e), it was submitted that the assessee has been granted registration under section 12A w.e.f. 01/04/1998 and the copy of such registration order was duly furnished along with the application. It was further submitted that there is no order rejecting registration in the past and hence clause (f) has no application.

3.2. The Ld.AR submitted that, the assessee has been in existence for several years and had duly furnished self-certified copies of its audited financial statements for the relevant preceding years in compliance with clause (g). It was further submitted that the assessee do not carry on any business undertaking within the meaning of section 11(4) or section 11(4A) of the Act and, therefore, the requirements under clause (h) are not applicable.

3.3. The Ld.AR contended that the observation of the Ld.CIT(E) regarding the application to be incomplete is thus factually incorrect and contrary to the material placed on record. The Ld.AR further submitted that even assuming without admitting that any document was deficient, the same was a curable defect and the Ld. CIT (Exemption) ought to have granted a reasonable opportunity to rectify the same instead of proceeding to reject the application.

3.4. Without prejudice to the above, the Ld. AR submitted that the sole basis for rejection, i.e., absence of an explicit irrevocability or dissolution clause in the trust deed, cannot be treated as a specified violation within the meaning of Explanation (g) to section 12AB(4). It was submitted that such a ground does not go to the genuineness of the activities of the trust nor does it establish that the assessee is not carrying out charitable activities in accordance with its objects. The Ld. AR thus submitted that the rejection of the application and cancellation of registration is arbitrary, unjustified, and not in accordance with law.

3.5. The Ld.AR placed relian