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CIT(E) Can’t Impose Extra 12AB, 80G Conditions
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Income Tax Appellate Tribunal, Mumbaitax

CIT(E) Can’t Impose Extra 12AB, 80G Conditions

October 9, 2026

ITAT Mumbai held that CIT(E) cannot impose additional conditions beyond statutory requirements for granting registration under Sections 12AB and approval under 80G.

No Extra-Statutory Conditions for 12AB and 80G Approval

ITAT Mumbai ruled that the Commissioner of Income Tax (Exemptions) [CIT(E)] cannot impose conditions beyond those specified in Sections 12AB and 80G of the Income Tax Act when granting registration or approval to trusts. The department had denied benefits based on non-compliance with internal circulars or administrative directives.

The tribunal held that only the conditions enumerated in the Act and rules are binding.

“Any requirement not statutorily prescribed cannot be a ground for denial of tax benefits”
, it observed, stressing that administrative convenience cannot override legislative intent.

This decision protects charitable trusts from arbitrary denial of exemptions. Practitioners should challenge any requirement not found in the Act or Rules, especially those arising from office memoranda or internal SOPs.

Citations

  • Section 12AB, Section 80G, Income Tax Act, 1961
Practice Areas:tax

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