Trust deed amendment does not by itself cancel registration; exemption under sections 11 and 12 remains available.

Amendment of a trust deed did not, by itself, justify denial of exemption under sections 11 and 12 where the Commissioner (Exemptions) had taken the amended deed on record, the section 12A registration was stated to remain valid, and exemption had been allowed in a later assessment year. On that basis, the earlier registration could not be treated as cancelled merely because the objects were amended, and the exemption claim remained available. A separate issue concerning the indigent fund and its utilisation had not been properly examined in assessment, so it required fresh adjudication after giving adequate opportunity to the assessee.

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Issues: (i) Whether the assessee was entitled to exemption under sections 11 and 12 despite amendment of the trust deed and the alleged non-renewal of registration under section 12A; (ii) whether the issue relating to the indigent fund and its utilisation required fresh adjudication.

Issue (i): Whether the assessee was entitled to exemption under sections 11 and 12 despite amendment of the trust deed and the alleged non-renewal of registration under section 12A.

Analysis: The amended trust deed had been taken on record by the Commissioner of Income-tax (Exemptions), and the registration certificate under section 12A was stated to continue to be valid. The record also showed that the Revenue had allowed exemption under sections 11 and 12 in the subsequent assessment year. In these circumstances, the earlier registration could not be treated as cancelled merely because the objects had been amended.

Conclusion: The assessee was entitled to exemption under sections 11 and 12, and the denial of such exemption was not sustainable.

Issue (ii): Whether the issue relating to the indigent fund and its utilisation required fresh adjudication.

Analysis: The issue had not been examined during the assessment proceedings, and the factual basis for the enhancement had not been properly considered at the earlier stages. A fresh decision after granting adequate opportunity was necessary.

Conclusion: The issue was remanded to the Assessing Officer for fresh adjudication.

Final Conclusion: The assessee succeeded on the principal exemption issue, while the ancillary indigent fund issue was sent back for reconsideration.

Ratio Decidendi: Where registration under section 12A is stated to continue and the Revenue itself accepts exemption in a later year, exemption under sections 11 and 12 cannot be denied merely on the basis of amendment in the trust deed; issues not examined earlier may be remanded for fresh adjudication in accordance with natural justice.

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