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2012 (12) TMI 283 - AT - Income TaxRenewal of approval under section 80G(5) of the Act - power of amendment or deletion or addition to the object clause - Third member decision - Held that:- From the judgment of Hon'ble Supreme Court in Sri Agastyar Trust Versus Commissioner of Income-Tax [1998 (2) TMI 7 - SUPREME COURT], it is clear that when the founders of the trust have no power to alter or vary the terms of the trust, a trustee appointed to manage the properties of the trust for securing its object, can under no circumstances be regarded as having such a power especially when the original trust deed does not bestow such power on him. In the instant case, founders or trustees had altered the object clause, without any power available to them to alter the same as per the original trust deed. - such amendment carried out by the trustees or founders is non est and invalid. For the sake of argument if it is accepted that the trustees or settlers had power to amend or alter the original Trust Deed even then on the strength of Corrigendum and supplementary deed mentioned hereinabove, the trust is not eligible for renewal of approval u/s 80G of the Act. The immovable property, as comprised in the 1st Schedule to the said Trust Deed remains untouched. The income from the said Trust property is to be applied first, in the maintenance and repair of temple property, as also to be spent for the worship of the said Deity and in the defraying of the usual expenses of holding festivals of the said deity, remains intact. Similarly, the construction of the temple and worship of the said Deity and adoration of the said Deity is still an integral part of unauthorisidely amended Trust Deed. Further, holding of periodical festivals of the Deity and offering daily worship, are still the organic part of the said Deed. These objects are purely religious in nature, inextricably linked to the Hindu religious community and its Deity 'Laxmi Narayan'. Even the unauthorized amended Trust Deed/so called supplementary Trust Deed contravenes the provisions of section 80G(5)(iii) read with Explanation 3 of the Act, being expressed to be for the benefit of a particular religious community i.e. Hindu. Trust is not entitled to renewal of approval u/s 80G(5) of the Act. - Decided against the assessee.
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