TMI Blog2016 (12) TMI 678X X X X Extracts X X X X X X X X Extracts X X X X ..... incorporated the necessary amendment in the said irrevocability clause regarding distribution of property on dissolution to satisfy the requirement as per the provisions of the Income Tax Act. In the facts and circumstances of the case, we set aside the impugned order passed under Section 12AA(1)(b)(ii) of the Income Tax Act and remand the matter to the record of the CIT (EXEMPTIONS) for deciding the matter afresh after considering the amendment carried out by the assessee vide Supplementary Deed dt.10.3.2016 as well as after giving an opportunity of hearing to the assessee. Entitlement to exemption under Section 80G(5) - Held that:- As the application for Registration under Section 80G(5) ws rejected by the CIT (EXEMPTIONS) based on the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... accounts for the period from the date of commencement of the foundation from 13.12.2014 till 31st October 2015. 3. The learned Commissioner of Income Tax had rejected the application for Registration U/s. 12AA only on the grounds that as per clause in the Trust Deed, it is mentioned as the assets of the foundation, on dissolution, shall be transferred to Sri Ramakrishna Ashrama (Bailur Math) or to Sri Sharada Math, Dakshineshwar, West Bengal, which enjoys recognition u/s.80G of Income Tax Act, This matter was not communicated to the Appellant by the learned Commissioner of Income Tax (E), even while suggesting certain changes to be made in the Trust Deed vide communication from Income Tax Dept. on 22.07.2015 and 16.10.2015. 4. Furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ppellant prays that the appeal be allowed. 3. The assessee filed an application for Registration under Section 12AA on 5.5.2015. The CIT (EXEMPTIONS) vide letter dt.16.10.2015 pointed out some discrepancy and called for certain details/clarifications. In response the assessee furnished the details on 4.11.2015. On verification of the details on record, it was found that one of the clauses of the Trust Deed states that in the case of Dissolution of the Trust, the property of the Trust should go to Sri Ramakrishna Ashrama however as per the provisions of the Income Tax Act in case the Dissolution the properties go to any other Trust which has similar objectives. Since the status of Sri Ramakrishna Ashrama regarding Regn. Under Section 12A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... opportunity to the assessee to rectify the defect if any in the trust deed therefore the ld. AR has pleaded that the matter maybe remanded to the CIT (EXEMPTIONS) for fresh consideration in the light of the amendment vide Supplementary Deed. 5. On the other hand, the ld. DR has relied upon the impugned order of the CIT (EXEMPTIONS) and submitted that despite the discrepancy pointed out by the CIT (EXEMPTIONS) the assessee failed to furnish the relevant details and to satisfy that the objects of the assessee-trust are charitable and activities are genuine. 6. Having considered the rival submissions as well as relevant material on record, we note that vide letter dt.16.10.2015, the CIT (EXEMPTIONS) called certain details/clarifications ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ka High Court in the case of Ganjam Nagappa and Son Trust Vs. DIT(E) reported in 269 ITR 59 have held that Grant of exemption or renewal is not automatic in character. b) The Hon'ble ITAT, Bangalore in the case of DBA Institution vide its order in ITA No.667(BNG)/08 dt.27.01.2009, has held that the DIT(E) was within his jurisdiction to reject the application of the assessee-trust for grant of registration under Section 12AA since the applicant trust could not substantiate its claim by bringing out the carrying on of charitable activity proceeded to uphold the order of the DIT(E) in rejecting the application u/s.12A. c) Hon'ble Kerala High Court in the case of Self Employers Institution Vs. CIT reported in 247 ITR 18 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... submitted that no independent decision was taken by the CIT (EXEMPTIONS) but the application for recognition under Section 80G was rejected in view of the order dt.6.11.2015. The ld. AR has further submitted that this order stated to have been passed on 28.9.2015 whereas it is based on the order dt.6.11.2015 which is a subsequent date order therefore this order is not sustainable. The ld. DR has submitted that it is only a typographical error as regards the date of order however, the CIT (EXEMPTIONS) cannot take a different view while considering the application for approval under Section 80G(5) when the application under Section 12AA(1)(b)(ii) is rejected. 9. Having considered the rival submissions as well the relevant material on r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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