TMI Blog2016 (5) TMI 1496X X X X Extracts X X X X X X X X Extracts X X X X ..... ne family, can be taken care of by the AO at the time of making the assessment and granting exemption under section 11 of the Act. Section 13 of the Act provides for refusing exemption under section 11 of the Act in such cases which the Assessing Officer can examine on yearly basis in every assessment year. Trust is not registered under the new Haryana Registration Regulation of Societies Registration Act, 2012 - we find ourselves in agreement with the arguments of the learned counsel for the assessee that the provisions of Haryana Registration Regulation of Societies Registration Act, 2012 are applicable to the society only. The assessee is a trust formed under the Indian Trust 1882 and has been duly registered with Sub-Registrar, Bilaspur. There is no bar under the Income Tax Act to give registration under section 12A of the Act to a trust. There is no provision which says that only societies can be registered under section 12A of the Act. Therefore, we do not find this objection raised by the Commissioner of Income Tax being as per law. Right to Education Act 2010 is not implemented by the school - the issue is covered by the order of the I.T.A.T., Chandigarh Ben ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned CIT is not justified in rejecting the registration u/s. 12AA by holding that the trust deed does not provide for dissolution clause whereas the same is clearly mentioned in clause No. 14 of the Trust Deed. 3. That the learned CIT is not justified in rejecting the registration u/s. 12AA on the ground that School is run by one family comprising of a father and his two sons whereas, there are seven trustees, the other four come from different families. 4. That the learned CIT is not justified in rejecting the registration u/s. 12AA on the ground that the main motive is profit though more than 85% has been applied on the objects. 5. That the learned CIT is not justified in rejecting the registration u/s. 12AA on the ground that the trust is not registered under the New Haryana Registration Regulation of Societies Registration Act, 2012, ignoring that the appellant is a Trust and not a society, duly registered with the Joint/Dy. Registrar Bilaspur. 6. That the learned CIT is not justified in rejecting the registration u/s. 12AA on the ground that Right to Education Act 2010 is not implemented, despite the fact that RTE Act is not relevan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which is quite evident from the surplus generated by it in the last few years. For the proposition that when the school was running on commercial lines under the guise of charitable purpose, no registration under section 12A of the Act should be granted. Reliance was placed on a judgment of the Kerala High Court in the case of Dawn Educational charitable Trust v. CIT (2015) 60 Taxmann.com 126 (Kerala). A judgment of Hon'ble Supreme Court in the case of Indian Chamber of commerce Industry v. CIT (1975) 101 ITR 796 (SC) was also relied upon by the learned D.R. 6. We have heard the learned representatives of both the parties, perused the findings of the authorities below and considered the material available on record. From the perusal of the order of the Commissioner of Income Tax, we see that she has raised four reasons for not granting registration under section 12A of the Act to the assessee trust. First reason given by her reads as follows: a) The Trust Deed has not provided for a 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. 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... there are five different families involved and not one. However, we find no relevance of the fact that the trust is being headed by the members of only one family. Even if a trust is run by only one family, there is no bar on such trust to be registered under section 12A of the Act. At the time of granting registration what the Commissioner of Income Tax has to see is that the objects of the trust are charitable in nature and the activities of the same are genuine. The fact whether some benefit directly or indirectly is being 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. Section 13 of the Act provides for refusing exemption under section 11 of the Act in such cases which the Assessing Officer can examine on yearly basis in every assessment year. 11. Third issue raised by the Commissioner of Income Tax is as follows: c) The Trust is not registered under the new Haryana Registration Regulation of Societies Registration Act, 2012. 12. In this regard, we find ourselves in agreement with the arguments of the learned counsel for the assessee th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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