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2019 (2) TMI 44 - AT - Income TaxCharitable activity - registration u/s 12AA - activities in accordance to its objects specified in the trust deed and for charitable purposes - complete inactivity till the sale of land and the associated gains from the sale are clear pointers that the activities (rather zero activities) are not in sync with the stated objects - amendment of trust deed on 27.03.2014 incorporating dissolution clause and at the same time introduction of new trustees - registration of Supplementary Trust Deed dated 27-03-2014 Held that:- It is trite to say that at the time of registration u/s 12AA, the Ld. CIT(E) has to consider the twin requirement (i) objects of the assessee society (ii) genuineness of its activity. Nowhere in the order, the Ld. CIT(E) has neither pointed out any defect in the objects of the society and/or activities of the applicant society nor doubted the genuineness of the activities specifically, therefore we are of the considered view that the Appellant is carrying its activities in accordance to its objects specified in the trust deed and for charitable purposes. As clearly demonstrated by the Appellant that before to establishing the 'Bhawan' the Appellant has not carried out any activity due to paucity of funds, which in our considered view seems to be logical reason for not carrying out any activity previously, hence this ground of rejection can not sustain. in the instant case new trustees have been appointed in place of erstwhile trustees who have died, by the board of trustees and therefore situation clearly seems to be covered by sub clause (a) of section 73 of the Indian Trusts Act and in our opinion there is no embargo and impediment in appointment of new trustees, except as specified in section 73 of the Act, which otherwise is not applicable to the instant case, hence we are of the considered view that new trustees have been appointed in accordance of law. It is seen that a supplementary trust deed has been submitted to the sub-registrar, Ludhiana. Whether the same has been registered and whether the Sub-Registrar is competent to do the same in the case of Public Charitable Trust has not been evidenced. The components of the trust deed (till the amendments are accepted by the competent Court) are held to be restrictive and to that extent not enduring to the benefit of the general public, seems to be general remarks without considering the intricacies of the law and therefore the reasons are illogical, hence, we are not inclined to accept this ground of rejection also. We are inclined to grant the registration to the Appellant trust and hence direct the Ld. CIT(E) to grant the registration u/s 12AA of the Act, however, it is clarified that the Ld. CIT(E) while granting the registration, shall be at liberty to endorse the condition, if any, he find to be reasonable in accordance with law. - Decided in favour of assessee
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