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TMI Blog2012 (9) TMI 760X X X X Extracts X X X X X X X X Extracts X X X X ..... acts are that the appellant a trust had filed application for registration u/s 12A(1)(a) of the Act on 28.04.2008 before the Ld. CIT. Several queries were issued time to time by the office of the Ld.CIT and keeping in view the objections raised by Ld. CIT the trust deed were amended. The Ld. CIT was not satisfied with the explanation of the appellant and has rejected the application for registration mainly on the basis that the object of the trust was not charitable and secondly the original trust deed cannot be supplemented. 3. The Ld. AR contended that appellant is an educational trust and imparting of education is its object. The original trust deed was amended twice removing the objections raised by the Ld. CIT. The amended trust deed was also got registered. The Ld. CIT however, did not accept the amended trust deed on the basis that supplementary trust deed is not acceptable. The Ld. AR referred the contents of original trust deed and amended trust deed copies whereof have been made available at page no. 4 to 25, page 42 to 60 and page 61 to 79 of the paper book. The Ld. AR also referred the contents of different paragraphs of the trust deeds which have been adversely inferr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e argued that the change or amendment made in the original trust deed was not as per the provisions of Para no. 17 of the trust deed, hence Ld. CIT has rightly refused to entertain the amended trust deed. 7. Considering the above submissions and having gone through the decisions relied upon we are of the considered view that as per the several decisions of different forums the Ld. CIT at the stage of granting registration u/s 12 A of the Act is to verify as to whether the objects of the applicant are charitable in nature. In the case of Reliable Educational Alliance Society Vs. CIT (Supra) the Delhi Bench of the Tribunal has held that the Ld. CIT was only required to satisfy himself about the objects of the trust and the genuineness of its activities while granting registration u/s 12 A to a charitable trust. In the case of Director of IT Vs. Garden City Educational Trust (Supra) the Hon'ble Karnataka High Court has been pleased to hold that imparting of education being the main object of the assessee trust, it has to be accepted that assessee exist for a charitable purpose and therefore, it is entitled to registration u/s 12 A. It has been further held that manner of appli ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucation in various disciplines, but primarily for Technical Education, Medical Education, Dental Education, Para-medical Colleges / Diploma / undergraduate / Post graduate courses on various fields such as Ayurvedic, Homoeopathy, Naturopathy, Pharmacy, Nursing, Laboratory, Radio diagnosis, Occupational therapy, Dietician, Acupuncture / Acupressure therapy, Management courses and all other such disciplines and prescribed courses by the state govt. and central govt. and central govt., public limited companies and foreign Universities / Institutions from time to time to help the Industrial and economical development of the country. (ii) To establish, manage, control, superintendent, run, lease out and grant in aid as cash or kind to other societies, trusts, firms etc. including Medical, Dental, Technical, Ayurvedic, Naturopathy, Homeopathy, Pharmacy and all other such colleges and hospitals and specialized studies and research Institutions to provide standard and high class education for MBBS, MD, BDS, MDS, MBA, MCA, BE / B.Tech. M.E / M.Tech, B.Pharma / M.Pharma, Computer courses, various Medical and Technical Diploma Courses, Under Graduate, post Graduate & Doctorate Courses of var ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .9.2008 and 22.9.2008 are not in accordance with the provisions of Indian Trust Act 1882 and judicial decision. The contention of the Ld. AR remained that the Ld. CIT has not pointed out any provision of the Indian Trust Act 1882 or any judicial decision which shows as to how the supplementary trust deeds dated 5.9.2008 and 22.9.2008 are not in accordance with law. The Ld. CIT in Para no. 12 of the order impugned has observed further that the appellant made frequent alteration in the original trust deed dated 1.4.2008. They have made alteration therein on 5.9.2008 and 22.9.2008 which itself shows that the aims/objectives of the appellant trust were admittedly repugnant to the provisions of the IT Act 1961. The Ld. CIT has placed reliance on some decisions and has held that there exists no legal provision to amend and re-amend the trust deed and such supplementary trust deeds cannot be given any credence. The Ld. CIT has cited following decisions in support : (i) Sakti Charities Vs. CIT (1994) 149 ITR 624 (Mad). (ii) Thanthi Trust Vs. ITO 91 ITR 261 (Mad).Shri Agasthyar Trust Vs. CIT (1999) 236 ITR 23 (SC). 10. The contention of the Ld. AR remained that the above cited decision ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation deed was not valid since trustees had no power to revoke or modify any of the objects of the trust originally constituted. It was further held that even the founder is not competent to delete any object though some other charitable object can be added without detriment to the original objects. The Hon'ble Madras High Court has approved the decision of the Tribunal. In the present case the appellant was not having any noncharitable objects in the original trust deed and alteration/modification were introduced only to make the objects of the trust more clear. Thus facts of the cited decision are different. 11. Likewise in the case of Shri Agasthyar Trust Vs. CIT (Supra) Trust was established under a partnership deed. Trustee made amendment of object clause. In a suit filed by one of the partner, the Hon'ble High Court held the trust to be irrevocable. All objects of the trust as originally established were of charitable nature. It was held that neither the trustee nor the founder could change the objects as set out in the partnership deed when the founders of the trustee have no power to alter or vary the terms of a trust, a trustee appointed to manage the properties of the tr ..... X X X X Extracts X X X X X X X X Extracts X X X X
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