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TMI Blog2015 (5) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to registration under Section 12 AA of the Act, however subject to fulfillment of conditions under Section 12 AA of the Act i.e. when the Commissioner is satisfied about the genuineness of the activities of the trust or the institution. As observed herein above, both the Commissioner as well as learned Tribunal have not addressed themselves on the aforesaid relevant aspect, we are of the opinion that matters are required to be remitted back to the file of the Commissioner and remanded to the learned Commissioner to consider the issue /grant of registration certificate under Section 12 AA afresh in accordance with law and on merits and to consider the genuineness of the trust / institution / genuineness of the activities of the trust after giving an opportunity to the trust to make submissions and / or produce on record any material in respect of their case that there is no reason to doubt the genuineness of the activities of the trust. - Decided in favour of assessee for statistical purposes. - Tax Appeal No. 915 of 2014, Tax Appeal No. 916 of 2014, Tax Appeal No. 917 of 2014 - - - Dated:- 25-3-2015 - M. R. Shah And S. H. Vora,JJ. For the Appellant : Mr Pranav G Desai, A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and has directed the Commissioner of Income Tax, Jamnagar to grant registration under Section 12AA of the Act to the assessee trust, the Revenue has preferred present Tax Appeal raising the aforesaid substantial question of law. 4.0. That the respective assessee trust registered under the Bombay Public Trust Act submitted the application for registration under Section 12 AA of the Act on 25.3.2013. 4.1. That on verification of the respective trust deed, it was observed by the Commissioner of Income Tax, Jamnagar that in the trust deed there is no dissolution clause and the respective trust did not explained anything related to provision in the events of its dissolution which should have reflected in trust deed, the Commissioner of Income Tax, Jamnagar doubted the genuineness of the trust and rejected the registration sought by the respective trust under Section 12AA of the Act. 4.2. Feeling aggrieved and dissatisfied with the respective orders passed by the CIT(A), Jamnagar refusing to grant registration under Section 12 AA of the Act to the respective trust, the respective trust - assessee trust preferred appeals before the learned Tribunal being ITA No. 440/ RJT/2013 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... will devolve on closure / dissolution of the trust and consequently when the Commissioner doubted the genuineness and bona fide of the trust, Commissioner rightly refused to grant registration under Section 12 AA of the Act to the respective assessee trust. It is further submitted by Shri Desai, learned counsel for the Revenue that the learned Tribunal has materially erred in simply relying upon the decision of the Coordinate Bench in the case of Chargam Dasha Porwad Mahamandal (supra). Number of submissions have been made by Shri Desai, learned counsel for the Revenue in support of the case on behalf of the Revenue that either in absence of any dissolution clause in the trust deed and / or in absence of any provision in the trust deed in the event of closure and /or dissolution of trust, the authority is justified in refusing to grant registration under Section 12 AA of the Act. However, for the reasons stated herein below, this Court proposes to remand the matter to the First Authority to consider the applications afresh, this Court is not further considering the larger issue in detail. 6.0. Shri B.S. Soparkar, learned Advocate for the respective assessee trust has vehementl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er on producing the relevant material to the aforesaid extent, before it. Therefore, it is requested to remand the matter to the first authority to consider the application of the respective assessee trusts afresh and in accordance with law and on merits and to consider the genuineness and /or credibility of the trust claiming registration under Section 12 AA of the Act. 8. To the aforesaid, Shri Soparkar, learned counsel for the assessee trust has stated that he will not have any objection if the matters are remanded to the first authority / Commissioner to consider the applications afresh and to consider the genuineness and / or credibility of the trust considering the fact that the respective assessee trust are carrying on their activity since many years; they they are filing their return of income every year and claiming the exemption and that same have been considered by the concerned AO and that the concerned AO have never doubted the genuineness and / or credibility of the assessee trust. It is submitted that a liberty may also be reserved in favour of respective assessee trust to produce the additional evidence / material to prove the genuineness / credibility of the tru ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, it is the case on behalf of assessee trusts that the Trust are in existence / prior to 1965 and in fact was regularly filing his return of income since, many year even claiming exemption under Section 12 AA of the Act and same has been considered by the AO and at no point of time they have doubted genuineness and / or bona fide of the assessee trust. Therefore, it is the case on behalf of the asseessee trust that they are entitled to registration certificate under Section 12 AA of the Act. 12. From the orders passed by the Commissioner refusing to grant registration certificate under Section 12 AA of the Act and even from the order passed by the learned Tribunal, it appears that none of the authorities belows have considered the above material and relevant aspect with respect to the satisfaction of the Commissioner with respect to genuineness of the trust. In a given case even in absence of any provision in the trust with respect to dissolution clause if on facts the trust is found to be genuine and / or genuineness of the trust is established, the trust may be entitled to registration under Section 12 AA of the Act, however subject to fulfillment of conditions under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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