Appeal dismissed, remand for exemption cert under section 80G(5). Court refrains from definitive opinion on trust deed dissolution clause.

The High Court dismissed the appeal and upheld the decision to remand the matter for further consideration regarding the exemption certificate under section 80G(5) of the Income Tax Act. The Court refrained from expressing a definitive opinion on the requirement of a dissolution clause in the trust deed, leaving the question open for future determination.

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Issues:
1. Interpretation of the clause in the trust deed regarding amalgamation and the power of trustees under the Bombay Public Trust Act.
2. Requirement of a dissolution clause in a trust deed for a public charitable trust to obtain an exemption certificate under section 80G(5) of the Income Tax Act.

Analysis:
1. The High Court considered the appeal challenging the order of the Income Tax Appellate Tribunal (ITAT) regarding the approval of a clause in the trust deed related to amalgamation. The appellant contended that the ITAT erred in approving the clause as trustees did not have the power as per the Bombay Public Trust Act. However, the Court did not delve into this issue as the matter was remanded back to the first authority for further consideration. The Court refrained from expressing any opinion on the requirement of a dissolution clause in the trust deed for obtaining an exemption certificate under section 80G(5) of the Income Tax Act.

2. The Court noted that the trust deed previously granted an exemption certificate under section 80G(5) of the Income Tax Act, valid from 2001 to 2004. Subsequently, when the trust applied for a new exemption certificate, it was rejected by the first authority due to the absence of a dissolution clause in the trust deed. The ITAT overturned this decision, stating that a dissolution clause was not necessary for the exemption certificate. The Court upheld the ITAT's decision to remand the matter to the first authority for fresh consideration. While dismissing the appeal, the Court refrained from deciding conclusively on the necessity of a dissolution clause for obtaining the exemption certificate.

In conclusion, the High Court dismissed the appeal, maintaining the decision to remand the matter for further consideration regarding the exemption certificate under section 80G(5) of the Income Tax Act. The Court refrained from expressing a definitive opinion on the requirement of a dissolution clause in the trust deed, leaving the question open for future determination.

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