TaxTMI 
TaxTMI 
2014 (12) TMI 1334
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....ritable trust" and that the application for registration is liable to be rejected on this ground alone. II. That the learned Honorable DIT(Exemptions), Mumbai has erred in concluding that as there is no winding up clause and that on winding up the net assets could be distributed to its members. This is not legal and factually incorrect and based on presumption and assumption as clause 12 of the Trust Deed clearly indicates that the trust may be amalgamated with another trust having similar objects therefore no funds can be given to or distributed to the members of the trust and as the Trust is registered with the charity Commissioner provisions of section 55 of the B.P.T. Act are applicable and with it the principle of CY PRES wherein app....
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....rescribed form no.10A on 31st July 2012. The assessee was asked to furnish certain details/documents. The authorized representative on 05/11/2012, attended the proceedings and submitted the relevant documents for verification as is evident from page 1 of the impugned order. The ld. DIT(E) observed that there was no dissolution clause in the trust deed. The assessee vide letter dated 14/01/2013 explained that it is being an irrevocable trust, the winding up, if any, has to be as per the Act/provision of section 55 of the BPT Act. However, the ld. DIT(E) rejected the application for registration, filed by the assessee. The aggrieved assessee is in appeal before this Tribunal. 2.2. Under the facts stated hereinabove, we are expected to analyz....
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....(185 ITR 635) (All.) and DIT vs Foundation of Opthalamic Optometry Research Education Centre 254 CTR 133 (Del.) 2.3. Even otherwise, if the funds/contribution are used by the assessee trust for non charitable purposes, there is a provision in the Act to take action accordingly. While, considering the application u/s 12A of the Act, all that the ld. Commissioner/DIT(E) is expected to examine whether the application is made in accordance with the requirement of the section read with Rule 17A, whether form 10A has been properly filled up and also whether the objects of the trust are charitable or not. So long, the trust has the objects of charitable nature, in our view, the registration should not be denied. So far as, application of funds an....