Appeals Granted: Trust wins registration and approval under IT Act; CIT(E) directed to provide

The Tribunal allowed the appeals of the assessee trust, overturning the CIT(E)'s refusal to grant registration under section 12AA and approval under section 80G of the IT Act. The Tribunal found the grounds for denial, including the lack of specific provisions in the trust deed, to be unjustified. Consequently, the refusal of approval under section 80G was also set aside, and the CIT(E) was directed to grant the approval. The orders were pronounced in favor of the assessee trust on 11/12/2017.

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Issues:
Appeal against refusal to grant registration u/s.12AA and approval u/s.80G of the IT Act to the assessee trust.

Analysis:
1. The primary grievance in the appeals is the refusal by the CIT(E) to grant registration u/s.12AA and approval u/s.80G of the IT Act to the assessee trust.

2. The CIT(E) refused registration u/s.12AA citing two main grounds. Firstly, the amendment clause in the trust deed lacked a specific provision for prior approval before amendments, which was deemed unjustified. The Tribunal referenced a prior case to establish that such a requirement is not mandated by law for registration purposes.

3. Secondly, the CIT(E) objected to the absence of an investment clause in the trust deed, indicating a lack of intention to invest funds as per specified provisions. However, the Tribunal clarified that the Income Tax Act prohibits investments violating specific sections and the trust deed's silence on investment clauses does not justify refusal of registration.

4. Regarding the denial of approval u/s.80G, it was based on the earlier refusal of registration u/s.12AA. As the Tribunal overturned the registration denial, the refusal of approval u/s.80G was also set aside, directing the CIT(E) to grant the approval.

5. Ultimately, the Tribunal allowed both appeals of the assessee, emphasizing the incorrectness of the grounds on which the registration and approval were denied by the CIT(E). The orders were pronounced in favor of the assessee trust on 11/12/2017.

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