2019 (8) TMI 1497

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..... ed, the net assets of the Trust on its dissolution would be transferred to any entity / distributed among the trustees? - HELD THAT:- Impugned order allowed the respondent s appeal by placing reliance upon the decision of its coordinate bench in the case of Geeta Lalwani Foundation Vs. Commissioner of Income Tax (Exemption) [2015 (1) TMI 1368 - ITAT MUMBAI ]. Mr. Kotangle, fairly states that the R .....

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..... is in existence. A partial expenditure which is not authorized by the Trust would not be itself lead to the Trust becoming nongenuine. The consequence would be that the benefit of Section 11 of the Act will not be available to that extent. At the stage of registration, this issue is premature. No substantial question of law.
MR M.S. SANKLECHA AND MR NITIN JAMDAR, JJ. For The Appellant : Mr. A .....

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..... he trustees thus defeating the very purpose of registration u/s 12AA of the I.T. Act, 1961? (ii) Whether on the facts and in circumstances of the case, the Tribunal was right in law by overlooking the facts that the assessee had incurred 29% out of its gross receipt towards religious activities which substantially higher than allowable i.e. 5% as per I.T. Act for religious purpose" 3. Regardi .....

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..... oes not give rise to any substantial question of law. Thus, not entertained. 4. Regarding question no.(ii) :- (a) The Director of Income Tax (Exemption) rejected the petitioner's application for registration under Section 12A of the Act on the ground that 29% of its gross receipts were expended on making donations for religious purposes. This activity of making donations for religious purpo .....

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..... the Trust are being spent in accordance with its objects. Therefore, this itself would establish that the Trust is in existence. A partial expenditure which is not authorized by the Trust would not be itself lead to the Trust becoming nongenuine. The consequence would be that the benefit of Section 11 of the Act will not be available to that extent. At the stage of registration, this issue is pr .....

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