2015 (1) TMI 1368

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....der passed by the Ld Director of Income Tax (Exemption) u/s 12AA(e)(iv) r.w.s 12A rejecting registration to appellant Trust is bad in law. 2. The Ld Director of Income Tax erred in rejecting registration on the ground that  (i) the Trust deed does not contain a dissolution clause and  (ii) the Trust has not carried out any activities so far. The Ld DIT (E) failed to appreciate that there are no legal requirements for the above & that trust is entitled to registration once it satisfies the prescribed conditions reg. its objects. 3. The case laws relied on by the DIT (E) to deny registration are not relevant as shown below. i 291 ITR 419 Bom It is in assessee‟s ....

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.... the relevant details / documents.  On perusal of the Trust Deed of the assessee, DIT (E) found the absence of „dissolution clause‟.  Not satisfied with the explanation of the assessee that the „dissolution clause‟ is not applicable to the assessee since the trust is irrevocable, DIT (E) came to the conclusion that assessee‟s trust failed to comply with the mandatory requirement s prescribed u/s 12AA read with Rule 17A of the Act and therefore, rejected the grant of registration.  Aggrieved with the decision of the DIT (E), assessee filed the present appeal before the Tribunal by raising the above mentioned grounds. 3. During the proceedings before us, Ld Counsel for the assessee submitted tha....

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....of absence of dissolution clause in the Trust Deed, Ld Counsel for the assessee relied on the decision of the ITAT, Amrutsar Bench in the case of Dream Land Educational Trust vs. CIT [2007] 109 TTJ 850 (Amr.) (Trib) as well as the decision of the ITAT, Indore Bench in the case of Dawoodi Bohra Jamat vs. CIT [2010] 123 ITD 452 (Ind.) (Trib).  Further, bringing our attention to the copy of the Trust Deed clause-2, which reads that "The Trust hereby declared shall be irrevocable".  This, the trust is irrevocable and perpetuity therefore the clause, if any, on the dissolution is not mandatory in the Trust Deed.   4. On the other hand, Ld DR relied on the judgment of the Hon‟ble Kerala High Court in the case of Self ....