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2019 (8) TMI 1497 - HC - Income TaxExemption u/s 11 - registration u/s 12AA denied - Whether Tribunal was right in overlooking the fact that in the absence of “Dissolution Clause” in the Trust Deed, the net assets of the Trust on its dissolution would be transferred to any entity / distributed among the trustees? - HELD THAT:- Impugned order allowed the respondent’s appeal by placing reliance upon the decision of its coordinate bench in the case of Geeta Lalwani Foundation Vs. Commissioner of Income Tax (Exemption) [2015 (1) TMI 1368 - ITAT MUMBAI]. Mr. Kotangle, fairly states that the Revenue being aggrieved by the above order of the Tribunal had preferred an appeal to this Court being [2018 (7) TMI 2053 - BOMBAY HIGH COURT ] wherein this Court dismissed the above Appeal on the identical question as framed herein. (b) Thus, for the reasons indicated above question no.(i) as proposed herein does not give rise to any substantial question of law. Thus, not entertained. Whether tribunal was right in law by overlooking the facts that the assessee had incurred 29% out of its gross receipt towards religious activities which substantially higher than allowable i.e. 5% as per I.T. Act for religious purpose? - HELD THAT:- We note that undisputedly 71% of the receipts of the Trust are being spent in accordance with its objects. Therefore, this itself would establish that the Trust is in existence. A partial expenditure which is not authorized by the Trust would not be itself lead to the Trust becoming nongenuine. The consequence would be that the benefit of Section 11 of the Act will not be available to that extent. At the stage of registration, this issue is premature. No substantial question of law.
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