Summary
- The Mumbai ITAT has removed a conditional clause from the registration order of Subh Prabhat Educational Trust under Section 12AB, asserting it cannot be made uncertain due to a proposed Supreme Court appeal.
- The Tribunal emphasized that the registration, granted in compliance with a binding Bombay High Court judgment, should not be contingent on potential future litigation.
- It ruled that the Commissioner’s attempt to impose conditions based on a proposed challenge was unjustified, as the High Court's decision remains binding unless stayed or reversed.
- This ruling clarifies that tax benefits for trusts must operate under existing law without anticipatory conditions linked to ongoing appeals.
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