Tribunal directs registration for charitable society under section 12AA, emphasizing compliance and recent legal amendments.

The tribunal directed the ld.CIT(E) to grant registration to the assessee society under section 12AA, citing the society's charitable nature, compliance with legal provisions, and approval of the scheme by the Charity Commissioner. The absence of a Dissolution clause in the trust deed was deemed inconsequential, following precedents from various High Court decisions. The appeal was allowed, emphasizing that recent amendments in the Income Tax Act addressed concerns related to trust dissolution, leading to the approval of the application for registration.

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Issues:
1. Rejection of application seeking registration under section 12AA of the Act due to lack of Dissolution clause in the trust deed.
2. Compliance with the provisions of the Maharashtra Public Trust Act in the absence of a Dissolution clause.
3. Interpretation of Section 115TD(c) of the Income Tax Act in relation to trust dissolution.
4. Applicability of previous court judgments regarding registration of trusts without a Dissolution clause.
5. Approval of the application for amendment to include the Dissolution clause in the trust deed.

Analysis:
1. The appeal was filed against the rejection of the application seeking registration under section 12AA of the Act due to the absence of a Dissolution clause in the trust deed. The ld.CIT(E) rejected the application citing technical grounds, despite acknowledging the charitable nature of the society's objects and activities carried out. The appeal argued that the Maharashtra Public Trust Act and recent amendments in the Income Tax Act address concerns related to trust dissolution, rendering the absence of a Dissolution clause inconsequential.

2. The assessee society, registered under the Charity Commissioner and the Societies Registration Act, had approached the Charity Commissioner for framing a scheme due to deficiencies in the old bye-laws. The scheme was approved, outlining educational objectives, and the society operated educational institutions for over 50 years. The society had been compliant with filing tax returns and sought exemption under section 12AA. The ld.CIT(E) was satisfied with the charitable nature of the society's objectives and activities but rejected the application based on the absence of a Dissolution clause.

3. The appeal highlighted an amendment in the Income Tax Act introducing Section 115TD(c) concerning trust dissolution. It argued that the new provisions address concerns about asset transfer upon dissolution, which the ld.CIT(E) overlooked. The appeal referenced a Bombay High Court decision emphasizing that the absence of a Dissolution clause does not hinder trust registration, as the Maharashtra Public Trust Act covers such contingencies.

4. The appeal drew upon previous court judgments, including the Hon'ble Rajasthan High Court and the Hon'ble Punjab and Haryana High Court decisions, to support its argument that the absence of a Dissolution clause should not impede the registration process. It emphasized that the society had applied for an amendment to include the Dissolution clause in its bye-laws, which was approved by the Deputy Charity Commissioner.

5. After considering the arguments and relevant legal provisions, the tribunal found no adverse findings on the society's charitable nature and genuineness of activities. It held that the society's submission to the Charity Commissioner's jurisdiction and compliance with the Bombay Public Trust Act, along with the approved scheme, justified the registration under section 12AA. Citing the precedent set by the Hon'ble Jurisdictional High Court, the tribunal directed the ld.CIT(E) to grant registration to the assessee society, thereby allowing the appeal.

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