Tribunal orders registration under Section 12AA for charitable trust despite missing dissolution clause.

The Tribunal directed the DIT(E) to grant registration under Section 12AA to the Assessee, as the case was found to be similar to a previous case where registration was allowed even in the absence of a dissolution clause in the trust deed. The Tribunal emphasized the importance of the trust being registered as a charitable trust and the willingness of the Assessee to amend the trust deed to include a dissolution clause, which ultimately led to the decision in favor of the Assessee.

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Issues: Registration of trust under Section 12A of the Act

Analysis:
The appeal was filed by the Assessee against the order of D.I.T(E), Ahmedabad regarding the registration of the trust under Section 12A of the Act. The DIT(E) denied the registration under section 12AA of the Act due to concerns regarding the dissolution clause in the trust deed and the absence of a clause for transferring assets. The Assessee argued that the trust deed did contain a clause for transferring the property to another institution with similar objects upon closure of the trust. The Assessee relied on a previous decision in a similar case to support their argument. The Tribunal noted that in a previous case, registration was allowed even in the absence of a dissolution clause in the trust deed, as long as the trust was registered with the sub-registrar as a charitable trust. The Tribunal found that the Assessee's case was on a sound footing as they had applied to the Charity Commissioner for amending the trust deed to include a dissolution clause. The Tribunal held that there was no justification for refusing registration to the Assessee and directed the DIT(E) to grant registration under Section 12AA of the Act. The appeal of the Assessee was allowed based on the similar reasons given in the previous case.

In conclusion, the Tribunal directed the DIT(E) to grant registration under Section 12AA to the Assessee, as the case was found to be similar to a previous case where registration was allowed even in the absence of a dissolution clause in the trust deed. The Tribunal emphasized the importance of the trust being registered as a charitable trust and the willingness of the Assessee to amend the trust deed to include a dissolution clause, which ultimately led to the decision in favor of the Assessee.

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