Trust registration cannot be refused solely for alleged benefit to specified persons when other records are in order.

Application of trust income for the benefit of specified persons may affect exemption under sections 11 and 12 through section 13(1)(c)(ii), but it does not by itself justify denial of registration under section 12A(1)(ac)(iii). On the facts noted, payment of life insurance premium for trustees was treated as the only objection, while the assessee had otherwise shown commencement of activities and filed accounts, bank statements, returns, and statutory intimation. As no additional defect in the registration claim was shown, the section 13 allegation was held to be an insufficient ground to refuse registration, and registration was stated to be allowable.

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Issues: Whether alleged application of trust funds for the benefit of specified persons under section 13 could justify refusal of registration under section 12A(1)(ac)(iii).

Analysis: The sole ground for rejection was payment of life insurance premium on behalf of trustees, treated as a benefit to a person covered by section 13(3). Such use or application of income may affect exemption under sections 11 and 12 by attracting section 13(1)(c)(ii), but it does not by itself warrant denial of registration where the assessee has otherwise shown commencement of activities and furnished supporting records. The materials on record, including accounts, bank statements, returns, and statutory intimation, did not disclose any additional defect in the claim for registration.

Conclusion: The alleged section 13 violation was not a valid ground to refuse registration, and the assessee was entitled to registration.

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