TMI Blog2015 (1) TMI 1368X X X X Extracts X X X X X X X X Extracts X X X X ..... efore us that the Bombay Public Trusts Act, 1950 mandates for incorporation of mandatory clause of dissolution of any irrevocable trust. Therefore, in our opinion, the decision of the DIT (E) rejecting the registration u/s 12A is required to be reversed. Accordingly, grounds raised by the assessee are allowed. - I.T.A. No.3566/M/2013 Assessment Year: 2013-2014 - - - Dated:- 2-1-2015 - SHRI VIJAY PAL RAO, AND D. KARUNAKARA RAO For the Appellant by: Dr. K. Shivaram, Rahul Sarda For the Respondent by: Smt. S. Padmaja-CIT, DR 02-01-2015 ORDER PER D. KARUNAKARA RAO, AM: This appeal filed by the assessee against the order of the DIT (E), Mumbai u/s 12AA(1)(b)(ii) read with section 12A of the Act, dated 23.4.2013 for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 138 ITD 179 Ag Facts are different. While aim was to provide education to destitute, the only activity was spending Huge amounts only on advertisements. 4. DIT (E) failed to note that as held in Swargiya JJ Shiksan Santha 141 ITD 543 Nagpur, at the stage of granting registration to a charitable trust, Director of Income Tax is only to examine genuineness of objects of the trust and not application of the income for charitable purpose which can be examined when trust filed its return of income. 5. DIT (E) failed to note that the charity Commissioner appointed by the Government of Maharashtra has registered the application as a Charitable Trust which satisfies the conditions of charity. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on to page of the paper book and submitted that Charity Commissioner of the State Government has granted the registration vide his order dated 17.9.2012. Further, on the issue of absence of charitable activities of the Trust, Ld Counsel submitted that the trust is registered recently and the same is yet to commence its charitable activities. Therefore it is a pre-mature to come to the conclusion that the assessee could not be given a registration u/s 12A of the Act for the proposition that application of the income of the trust is not a mandatory requirement and only thing to be examined is the genuineness of the activities of the Trust. For this he relied on the judgment of the Hon‟ble Karnataka High Court in the case of Sanjee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e facts of the said trust generating the income and not undertaking any charitable work. Thus, the same is distinguishable. In the present case, assessee is yet to commence its activities and therefore, the assessee cannot be described as undertaking the activities for generating income only. Regarding the dissolution clause noting is brought on record even before us that the Bombay Public Trusts Act, 1950 mandates for incorporation of mandatory clause of dissolution of any irrevocable trust. Therefore, in our opinion, the decision of the DIT (E) rejecting the registration u/s 12A is required to be reversed. Accordingly, grounds raised by the assessee are allowed. 6. In the result, appeal of the assessee is allowed. Order pronou ..... X X X X Extracts X X X X X X X X Extracts X X X X
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