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TMI Blog2015 (2) TMI 667X X X X Extracts X X X X X X X X Extracts X X X X ..... nt which was yet to take place and the defect pointed out by the Director General was cured prior thereto. Moreover, there was no allegation of utilization of funds in violation of the trust deed of the petitioner. In such a situation, declining approval/exemption to the petitioner under section 10(23C)(vi) of the Act was unjustified. - Decided in favour of assessee. - CWP No.510 of 2014 - - - Dated:- 24-3-2014 - MR. AJAY KUMAR MITTAL AND MS. ANITA CHAUDHRY, JJ. For the Appellant : Mr.Pankaj Jain, Sr. Advocate with Mr. Divya Suri, Advocate For the Respondent : Mr. Rajesh Katoch, Advocate JUDGMENT Ajay Kumar Mittal J.- 1. Challenge in this petition filed under articles 226/227 of the Constitution of India is to th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that the rules of the society did not provide for the method of application of funds in the case of dissolution of the society at the time of filing of the application. Hence, the present petition. 3. We have heard learned counsel for the parties and perused the record. 4. Learned counsel for the petitioner submitted that the Director General of Income-tax (Inv.) had declined the request of the petitioner for exemption/approval under section 10(23C)(vi) of the Act for the assessment year 2012-13 on the ground that in the trust deed, nothing had been provided regarding the utilization of the funds in the event of dissolution or winding up of the society. It was further urged that it was a curable defect and after curing it, the peti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It was not shown by the respondent that any money had ever been diverted to any other trust and it did not carry on any activity for which the society had been constituted. The defect, as pointed out by the Director General of Income-tax, was curable as the utilisation of the funds in the event of dissolution or winding up of the society was an event which was yet to take place and the defect pointed out by the Director General was cured prior thereto. Moreover, there was no allegation of utilization of funds in violation of the trust deed of the petitioner. In such a situation, declining approval/exemption to the petitioner under section 10(23C)(vi) of the Act was unjustified. 7. In view of the above, the writ petition is allowed. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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