Petitioner permitted to amend Trust Deed under Clause 5, subject to Commissioner's approval

The court allowed the petitioner to correct mistakes in the Trust Deed as per Clause 5, directing them to follow the prescribed procedure for seeking approval from the Commissioner of Income Tax. The Commissioner was granted authority to decide based on the amended application in accordance with the law.

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Issues:
Challenge to Ext.P5 issued by Principal Commissioner of Income Tax regarding Trust Deed correction.

Analysis:
The petitioner sought to challenge Ext.P5 issued by the Principal Commissioner of Income Tax, directing the petitioner to correct mistakes in the Trust Deed by preparing a fresh Deed. The petitioner argued that the Trust Deed itself contained provisions in Clause 5 allowing for amendments without the necessity of preparing a fresh deed. The petitioner was concerned that submitting a fresh deed might affect the benefits accruing from the original application submitted earlier. The court considered the arguments presented by both parties.

The Standing Counsel for the respondents stated that the original deed had defects, and the errors could only be rectified by amending the original deed. Ext.P5 was issued to correct the mistake by preparing a fresh deed, as the original deed was deemed invalid. The Standing Counsel emphasized that any benefits would only accrue from the amended date, not the original submission date.

The court analyzed the Trust Deed's Clause 5, which empowered the trustees to alter, vary, or amend any provisions of the deed with the employer's approval. The court noted that there was no necessity to prepare a fresh deed as indicated in Ext.P5. The petitioner was advised to amend the Trust Deed in accordance with the provisions of Clause 5 and seek approval from the Commissioner of Income Tax. The court highlighted that the petitioner had not followed the correct procedure for amending the Trust Deed, as evidenced by the incomplete amendments in Ext.P4. The court clarified that a fresh deed was not required, and the petitioner was directed to submit the necessary amendments for approval.

In the final disposition, the court allowed the petitioner to correct the mistakes in the Trust Deed as per Clause 5 and instructed the petitioner to follow the prescribed procedure for seeking approval from the Commissioner of Income Tax. The Commissioner was granted the authority to make a decision based on the amended application in accordance with the law.

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