TMI Blog2015 (7) TMI 143X X X X Extracts X X X X X X X X Extracts X X X X ..... trust, in the event of failure of the trust the net assets/income would obviously be taken over by the Charity Commissioner and the rejection of registration on this ground was held not on a sound footing and the orders of the DIT(Exemptions) were reversed. We find that the case of the assessee is on more sound footing since it has already applied to the Charity Commissioner for amendment of the trust-deed vide application submitted on 26/02/2013, whereby inserting the dissolution clause providing that the trust shall be irrevocable and in the most unlikely situation, if trust practically stops functioning, it can only be merged/amalgamated with other one or more public charitable trusts or bodies having similar objects subject to the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nce there was no such clause in the deed, DIT(E) denied the registration under section 12AA of the Act. Aggrieved by the order of DIT(E), the Assessee is now in appeal before us. 4. Before us, at the outset, the ld. A.R. submitted that the trust deed indeed contained a clause wherein it was stated that on closure of the trust, the property of the trust be handed over to other institution having similar objects by passing necessary resolution. He pointed out to para 3 of the DIT(E) order, where the relevant clause of Assessee was reproduced. He further submitted and placed reliance on the decision in the case of Shri Chargam Dasha Porwad Mahamandal ITA No. 337 338/Ahd/2013. He further submitted that since the facts of the case of the As ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, in the event of failure of the trust the net assets/income would obviously be taken over by the Charity Commissioner and the rejection of registration on this ground was held not on a sound footing and the orders of the DIT(Exemptions) were reversed. We find that the case of the assessee is on more sound footing since it has already applied to the Charity Commissioner for amendment of the trust-deed vide application submitted on 26/02/2013, whereby inserting the dissolution clause providing that the trust shall be irrevocable and in the most unlikely situation, if trust practically stops functioning, it can only be merged/amalgamated with other one or more public charitable trusts or bodies having similar objects subject to the approval ..... X X X X Extracts X X X X X X X X Extracts X X X X
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