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2015 (1) TMI 1166 - HC - Income TaxRegistration under section 10(23AAA) rejected - Held that:- It is clear that the very object of the trust is to see that the employees may not have to lend their hands before any person for money at a higher rate of interest from outsider, and for that, the trust is created. If we go through the clauses no. 7 and 10, they are in consonance with the guidelines issued by the CBDT. On close scrutiny of word "contribution", it presupposes the contribution of employee is mandatory and other contribution by the employer in any form is acceptable. The finding of Commissioner is bad in law and against the provision. In that view of the matter, in our view, the Commissioner has wrongly interpreted Rule 16(C) of the Income Tax Rules. In that view of the matter, the interpretation put forward by the Commissioner is required to be rejected. The apprehension which has been emphasized by Mr. Desai learned advocate for the respondent that the fund, on dissolution of Trust, will go to Kandla Port Trust, in our view, till the last beneficiary of the Trust remain in existence. However, only with the order Central Government, the Trust can be dissolved and the amount remained with the Trust will go back to the Statutory Authority i.e. Kandla Port Trust. Therefore, in the facts and circumstances of the case, the clauses are not objectionable. Thus petition is allowed. The Commissioner of Income-Tax, Rajkot-1, Rajkot is directed to grant approval to the petitioner-Trust on or before 31.1.2015, from the date on which they made application. - Decided in favour of assessee.
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