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TMI Blog2014 (12) TMI 1334X X X X Extracts X X X X X X X X Extracts X X X X ..... he audited accounts of the assessee and receipt of donation of ₹ 6 lakh out of which ₹ 3,50,000/- were incurred for educational activities including expenses on printing and stationary, salary, uniform expenses and welfare activities. So far as, scope of powers of the ld. Commissioner/DIT(E) for the purposes of section 12AA of the Act are concerned, the Authority have to satisfy about the genuineness of its activities of the trust or institution. The objects of the trust are available at pages 11 onwards of the paper book (internal pages 5 onwards of the trust deed). So long, the trust has the objects of charitable nature, in our view, the registration should not be denied. So far as, application of funds and as to whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one. II. That the learned Honorable DIT(Exemptions), Mumbai has erred in concluding that as there is no winding up clause and that on winding up the net assets could be distributed to its members. This is not legal and factually incorrect and based on presumption and assumption as clause 12 of the Trust Deed clearly indicates that the trust may be amalgamated with another trust having similar objects therefore no funds can be given to or distributed to the members of the trust and as the Trust is registered with the charity Commissioner provisions of section 55 of the B.P.T. Act are applicable and with it the principle of CY PRES wherein application should be made to the Charity Commissioner for distribution of the assets on winding up. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ocuments. The authorized representative on 05/11/2012, attended the proceedings and submitted the relevant documents for verification as is evident from page 1 of the impugned order. The ld. DIT(E) observed that there was no dissolution clause in the trust deed. The assessee vide letter dated 14/01/2013 explained that it is being an irrevocable trust, the winding up, if any, has to be as per the Act/provision of section 55 of the BPT Act. However, the ld. DIT(E) rejected the application for registration, filed by the assessee. The aggrieved assessee is in appeal before this Tribunal. 2.2. Under the facts stated hereinabove, we are expected to analyze authenticity of the rejection of registration by the ld. DIT(E). Admittedly, as per the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Research Education Centre 254 CTR 133 (Del.) 2.3. Even otherwise, if the funds/contribution are used by the assessee trust for non charitable purposes, there is a provision in the Act to take action accordingly. While, considering the application u/s 12A of the Act, all that the ld. Commissioner/DIT(E) is expected to examine whether the application is made in accordance with the requirement of the section read with Rule 17A, whether form 10A has been properly filled up and also whether the objects of the trust are charitable or not. So long, the trust has the objects of charitable nature, in our view, the registration should not be denied. So far as, application of funds and as to whether the assessee can claim benefit of exemption in t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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