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2016 (5) TMI 1496 - AT - Income TaxExemption u/s 11 - grant of registration u/s 12A denied - trust deed had not provided for a dissolution clause for use of net assets of the trust for its objects in case of dissolution - HELD THAT:- Referring to clause 14 of trust deed we see that the mandate of the said clause is to transfer the remaining assets and liabilities of the assessee to a similar trust at the time of dissolution. There is no intention of giving benefit to a specific person out of whatever remains in the hands of the assessee trust. Therefore, we see no reason for doubting the said clause. School is run by one family headed by father as Settler-cum-President and two sons as trustees - we find no relevance of the fact that the trust is being headed by the members of only one family. Even if a trust is run by only one family, there is no bar on such trust to be registered u/s 12A. At the time of granting registration what the CIT has to see is that the objects of the trust are charitable in nature and the activities of the same are genuine. The fact whether some benefit directly or indirectly is being diverted to one family, can be taken care of by the AO at the time of making the assessment and granting exemption under section 11 of the Act. Section 13 of the Act provides for refusing exemption under section 11 of the Act in such cases which the Assessing Officer can examine on yearly basis in every assessment year. Trust is not registered under the new Haryana Registration & Regulation of Societies Registration Act, 2012 - we find ourselves in agreement with the arguments of the learned counsel for the assessee that the provisions of Haryana Registration & Regulation of Societies Registration Act, 2012 are applicable to the society only. The assessee is a trust formed under the Indian Trust 1882 and has been duly registered with Sub-Registrar, Bilaspur. There is no bar under the Income Tax Act to give registration under section 12A of the Act to a trust. There is no provision which says that only societies can be registered under section 12A of the Act. Therefore, we do not find this objection raised by the Commissioner of Income Tax being as per law. Right to Education Act 2010 is not implemented by the school - the issue is covered by the order of the I.T.A.T., Chandigarh Bench in the case of Kids-R-Kids International Educational & Social Welfare Trust [2016 (3) TMI 1083 - ITAT CHANDIGARH] whereby it has been very categorically held that the issue of school complying with the provisions of the RTE Act is not a relevant consideration to be taken care of by the Commissioner of Income Tax at the time of registration under section 12A of the Act. - Decided in favour of assessee.
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