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2015 (5) TMI 87 - HC - Income TaxNecessity of dissolution clause in the deed of the charitable trust - Commissioner refusing to grant registration certificate under Section 12 AA as trust deed do not provide any "dissolution clause" and / or any provision for distribution of the properties in the event of closure / dissolution of the trust - it is the case on behalf of assessee trusts that the Trust are in existence / prior to 1965 and in fact was regularly filing his return of income since, many year even claiming exemption u/s 12 AA - Held that:- From the orders passed by the Commissioner refusing to grant registration certificate under Section 12 AA and even from the order passed by the learned Tribunal, it appears that none of the authorities belows have considered the material and relevant aspect with respect to the satisfaction of the Commissioner with respect to genuineness of the trust. In a given case even in absence of any provision in the trust with respect to "dissolution clause" if on facts the trust is found to be genuine and / or genuineness of the trust is established, the trust may be entitled to registration under Section 12 AA of the Act, however subject to fulfillment of conditions under Section 12 AA of the Act i.e. when the Commissioner is satisfied about the genuineness of the activities of the trust or the institution. As observed herein above, both the Commissioner as well as learned Tribunal have not addressed themselves on the aforesaid relevant aspect, we are of the opinion that matters are required to be remitted back to the file of the Commissioner and remanded to the learned Commissioner to consider the issue /grant of registration certificate under Section 12 AA afresh in accordance with law and on merits and to consider the genuineness of the trust / institution / genuineness of the activities of the trust after giving an opportunity to the trust to make submissions and / or produce on record any material in respect of their case that there is no reason to doubt the genuineness of the activities of the trust. - Decided in favour of assessee for statistical purposes.
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