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2018 (8) TMI 195

scribed Form 10A on 31.7.2017 seeking registration under the Income Tax Act as well as application in Form 10G was filed on the same date by the assessee society for approval u/s.80G of the Act. - A reading of above clause shows that the Memorandum of Association specifically provides that upon dissolution of the society, its assets will be handed over to similar registered society or to Government after clearing up all itís debts and liabilities. Therefore, in view of above clause in the MOA of the society, in our considered view, the ld CIT(Exemption) was not justified in refusing registration to the assessee society on this ground also. - The refusal to grant registration u/s.12AA of the Act to the assessee society is not proper .....

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ould not have rejected the application on the ground that, Assessee has not mentioned that, unwinding up the Society, the remaining Assets shall be transferred to an institution having registration U/S.12AA and approval U/s.80G(5) of the Act. 5. For that, the reason advanced by the learned C.I.T(Exemptions) cannot be a reason at all to deny the grant of registration as law does not require so for rejection of the application for grant of registration. 6. For that, since the Assessee has qualified for all the requisite requirements, the application for grant of registration needs to be allowed in the interest of justice. 3. Brief facts of the case are that the assessee society filed application in Form No.10A and Form No.10G on 3.1.2017 seek .....

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R. filed a copy of the order of this Tribunal in the case of Indo Swedish Rheumatology Foundation vs CIT(E) in ITA Nos.354 & 381/CT/2016 order dated 11.12.2017 and submitted that grounds (i) & (iii) mentioned by the CIT(E) are covered in favour of the assessee. As regards to dissolution clause taken in Ground No.(ii), ld A.R. submitted that there is a clause in the MOA and therefore, it was his submission that the CIT(Exemption) was not justified in not granting registration u/s.12AA of the Act and approval under section 80G of the Act as applied by the society. 5. Ld D.R. on the other hand relied on the order of the CIT(Exemption). 10. We have heard the rival submissions, perused the orders of lower authorities and materials availa .....

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ndments shall be carried out only with the prior approval of the CIT(E). ii) the investment clause has not been incorporated in the trust deed, which indicates that the there is no intention on the part of the trust to invest the funds in the modes specified under the provisions of section 13(1)(d) r.w.s.11(5) of the I.T.Act. 4. With regard to the first objection of the CIT(E) that the amendment clause in the trust deed does not specifically provide that the amendments shall be carried out only with the prior approval of the CIT(E), we find that the issue is covered in favour of the assessee by the decision of this bench of the Tribunal in the case of Balasore Law College Vs. CIT(E), ITA No.459/CTK/2015, order dated 15.02.2017, wherein it w .....

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at there was no intention on the part of the assessee trust to invest the funds in the modes specified under the provisions of section 13(1)(d) r.w.s. 11(5) of the Act and that no investment clause was incorporated in the trust deed, we are of the considered view that the Income Tax Act prohibits investment in violation of Section 13(1)(d) & 11(5) of the Act and the trust deed prohibits such an investment by the assessee trust and, therefore, refusal to grant registration to the assessee trust on this count also is an irrelevant ground. Hence, we set aside the order of CIT(E) on this ground also. We therefore, direct the CIT(E) to grant registration u/s.12AA of the Act to the assessee trust. 7. With regard to not granting approval u/s.8 .....

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