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TMI Blog2021 (2) TMI 727X X X X Extracts X X X X X X X X Extracts X X X X ..... f appeal: "1. The ld.CIT erred in law and on facts in rejecting the registration u/s 12AA(1)(b)(ii) to the appellant Trust without giving any opportunity of being heard. 2. The ld.CIT erred in law and on facts in holding that genuineness of activities is not established." 3. The assessee, a trust registered under the Bombay Public Trust Act, 1950, established on 10-03-2016 bearing no. F-18232/JALGAON, filed an online application for registration under section 12AA(1)(b)(ii) of the Act on 12-02-2019 with the ld. CIT (Exemptions). The ld. CIT (Exemptions) issued a letter to the assessee calling for certain queries regarding its application for registration under section 12AA of the Act vide letter dated 06-03-2019 which was not complied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he back side of page 11 of the paper book where clause 18 of the trust was exhibiting the beneficiaries. However, the learned AR at the time of hearing fairly agreed that the assessee in the letter dated 03.04.2019 to the ld. CIT (Exemptions) has wrongly mentioned clause 2 of the Memorandum of Association showing the beneficiaries. As such, beneficiaries are appearing in clause 18 of the trust deed wherein it was clearly mentioned that the funds and the properties of the trust shall be used towards the fulfillment of the objects of the trust. As per the learned AR it was the typographical error which should have been ignored and the entire trust deed should have been considered by the ld. CIT (Exemptions) while seeing the application for re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble Bombay High Court in the case of CIT (Exemptions) Vs. Setco Foundation in Income Tax Appeal No. 926 of 2016 dated 21.01.2019. 9. The learned AR further brought to our notice that the necessary changes as suggested by the ld. CIT (Exemptions), though not required, have been made in the trust deed and accordingly, filed the changed memorandum which are placed on pages 48 to 89 of the paper book. 10. On the other hand, the learned DR submitted that the assessee in its letter dated 03.04.2019 to the ld. CIT (Exemptions) has mentioned that that the assessee is the educational and charitable trust and running primary, high school and college whereas the assessee in the submission to the tribunal vide letter dated 12.02.2020 has submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Moving further, we note that the ld.CIT (Exemptions) has rejected the application under section 12AA of the Act due to two reasons. Firstly, there was no clause in the trust deed / memorandum of association that the beneficiaries are the class / section of public and not the specific individuals. Secondly, there was no specific clause in the trust deed /memorandum of association that the properties of the trust shall be transferred to another trust having similar objectives in the event of winding up of its activities. 15. Regarding the specific clause of the beneficiaries in the trust deed / memorandum of association, we find important to refer the objects of the trust as mentioned in clause 18 which reads as under: "18. Fund Property ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pired that necessary clauses are very much appearing in the memorandum of association as highlighted by the ld. CIT (Exemptions) in his order. Thus, it can be inferred that all the compliances as required by the ld. CIT (Exemptions) have been duly complied by the assessee. 19. A question/aspect also arises whether the ld. CIT (Exemptions) has verified the clauses as discussed above. From the finding of the ld. CIT (Exemptions), it is transpired that he has not verified the above clauses. However, we find that the assessee has made the reply to the queries referred by the ld. CIT (Exemptions) vide letter dated 03.04.2019 which is placed on record. It is also important to note that the ld. CIT (Exemptions) in his order has also made referen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eference to Section 55 of the Bombay Public Trust Act 1950 which provides for the contingency of absence of dissolution clause in the trust deed. 5. Mr. Kotangale, the learned counsel for the Revenue very fairly states that the identical issue had arisen before this Court in Income Tax Appeal No. 247 of 2015 (CIT 2 of 3 8. os itxa 926-16.doc [Exemptions]) Vs. Tara Educational 8GBP Charitable Trust. The said appeal was dismissed as not giving rise to any substantial question of law. 6. In the above view, for the reasons indicated in our order in Tara Educational & Charitable Trust (supra), the proposed question does not give rise to any substantial question of law. Thus, not entertained. The appeal is dismissed." 22. In view of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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