2015 (1) TMI 1368

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ng the activities for generating income only. Regarding the dissolution clause noting is brought on record even before us that the Bombay Public Trusts Act, 1950 mandates for incorporation of mandatory clause of dissolution of any irrevocable trust. Therefore, in our opinion, the decision of the DIT (E) rejecting the registration u/s 12A is required to be reversed. Accordingly, grounds raised by the assessee are allowed.
SHRI VIJAY PAL RAO, AND D. KARUNAKARA RAO For the Appellant by: Dr. K. Shivaram, Rahul Sarda For the Respondent by: Smt. S. Padmaja-CIT, DR 02-01-2015 ORDER PER D. KARUNAKARA RAO, AM: This appeal filed by the assessee against the order of the DIT (E), Mumbai u/s 12AA(1)(b)(ii) read with section 12A of the Act, dat .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... d in Swargiya JJ Shiksan Santha 141 ITD 543 Nagpur, at the stage of granting registration to a charitable trust, Director of Income Tax is only to examine genuineness of objects of the trust and not application of the income for charitable purpose which can be examined when trust filed its return of income. 5. DIT (E) failed to note that the charity Commissioner appointed by the Government of Maharashtra has registered the application as a Charitable Trust which satisfies the conditions of charity. 2. Briefly stated relevant facts of the case are that the assessee filed an application for registration u/s 12A of the IT Act, 1961. In this regard, assessee was asked to furnish the relevant details / documents. On perusal of the Trust Deed .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ed that the trust is registered recently and the same is yet to commence its charitable activities. Therefore it is a pre-mature to come to the conclusion that the assessee could not be given a registration u/s 12A of the Act for the proposition that application of the income of the trust is not a mandatory requirement and only thing to be examined is the genuineness of the activities of the Trust. For this he relied on the judgment of the Hon‟ble Karnataka High Court in the case of Sanjeevamma Hanumanthe Gowda Charitable Trust vs. DIT (E) [2006] 285 ITR 327 (Kar.) (High Court). On the aspect of absence of dissolution clause in the Trust Deed, Ld Counsel for the assessee relied on the decision of the ITAT, Amrutsar Bench in the case o .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X