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2017 (12) TMI 1579 - AT - Income TaxRefusing to grant registration u/s.12AA and approval u/s.80G to the assessee trust - CIT(E) has refused to grant registration u/s.12AA on the ground that amendment clause does not provide for prior approval of the CIT(E) before carrying out the amendment in the trust deed - Held that:- We find that there is no such provision in the Act for refusal to grant registration to the assessee trust. Thus, the refusal to grant registration on this ground is an irrelevant ground and, hence, not sustainable. With regard to objection regarding investment clause stating that there was no intention on the part of the assessee trust to invest the funds in the modes specified under the provisions of section 13(1)(d) r.w.s. 11(5) and that no investment clause was incorporated in the trust deed, we are of the considered view that the Income Tax Act prohibits investment in violation of Section 13(1)(d) & 11(5) of the Act and the trust deed prohibits such an investment by the assessee trust and, therefore, refusal to grant registration to the assessee trust on this count also is an irrelevant ground. Hence, we set aside the order of CIT(E) on this ground also. We therefore, direct the CIT(E) to grant registration u/s.12AA of the Act to the assessee trust. With regard to not granting approval u/s.80G we find that the reason given by the CIT(E) that he has refused to grant registration u/s.12AA of the Act, therefore, consequently he had not granted approval u/s.80G of the Act to the assessee trust. As we have granted registration u/s.12AA of the Act to the assessee trust, we set aside the order of CIT(E) on his count and also direct the CIT(E) to grant approval u/s.80G of the Act to the assessee trust and allow the appeal of the assessee.
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