TMI Blog2019 (6) TMI 231X X X X Extracts X X X X X X X X Extracts X X X X ..... jection (a) put by the CIT, had noticed that as per clause 14 of the Trust Deed, the mandate of the said clause was to transfer the remaining assets and liabilities of the assessee to a similar trust at the time of dissolution. There was no intention of giving benefit to a specific person out of whatever remains in the hands of the assessee Regarding objection (b), the Tribunal had recorded that even if a trust was run by only one family, there was no bar on such trust to be registered under Section 12AA of the Act. The CIT had only to see that the objects of the trust were charitable in nature and the activities of the same were genuine at the time of granting registration. Regarding the fact that the benefit directly or indirectly dive ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... AJAY KUMAR MITTAL AND MRS MANJARI NEHRU KAUL, JJ. For The Appellant : Mr. Denesh Goyal, Senior Standing Counsel For The Respondent : Mr. Brij Mohan Monga, Advocate and Mr. Rohit Kaura, Advocate ORDER AJAY KUMAR MITTAL, J. 1. Delay of 117 days in filing the appeal is condoned. 2. This appeal has been filed by the revenue under Section 260A of the Income Tax Act, 1961 (in short the Act ) against the order dated 23.5.2016 (Annexure A-2) passed by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh (hereinafter referred to as the Tribunal ) in ITA No. 841/Chd/2014, for the assessment year 2011-12, claiming the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated, the facts necessary for adjudication of the instant appeal as narrated therein may be noticed. The assessee moved an application in Form 10A seeking registration under Section 12AA of the Act in the office of Commissioner of Income Tax, Panchkula (for brevity the CIT ) on 27.3.2014. The CIT rejected the application of the assessee for grant of approval under Section 12AA of the Act vide order dated 11.8.2014 (Annexure A-1), with the following objections:- a) That the trust deed had not provided for dissolution clause for use of net assets of the trust for its objects in case of dissolution and bar on reversion of net assets to founder, members, directors etc.; b) That the School is run by one fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Act. The CIT had only to see that the objects of the trust were charitable in nature and the activities of the same were genuine at the time of granting registration. Regarding the fact that the benefit directly or indirectly diverted to one family, can be taken care of by the Assessing Officer at the time of making the assessment and granting exemption under Section 11 of the Act. While dealing with objection (c), the Tribunal had observed that the assessee is a trust formed under the Indian Trust Act, 1882 and had been duly registered with the Sub Registrar, Bilaspur. There was no bar under the Act to give registration under Section 12AA of the Act to a trust and that no provision provided that only societies can be registered under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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