2015 (4) TMI 1221

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....licant trust.  2) The learned Director of Income Tax (exemption) erred in not considering the  provisions of Bombay Public Trust Act, 1950 which itself provides for the  procedure to be followed if any trust wants to wind up or dissolve. It is stated in  the order u/s. 1 2AA(1 )(b )(ii) itself that "If for some reason its objects cannot be  carried out by the trustees who decides to dissolve or wind up the trust than as  per the provisions of Bombay Public Trust Act, 1950 its net assets will be given  to another trust having similar objects and under no circumstances these will be  distributed among the trustees".   3) The learned director of Income Tax (exemption) erred in not consideri....

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....ted assessee to furnish certain detail/documents including the note on activities undertaken by it.He also directed the managing trustee to attend his office on 5.10.2013. After considering the submission of the assessee,the DIT-E held that in order to be eligible for registration the assessee had to be validly constituted public charitable trust, that perusal of the trust deed revealed that there was no dissolution-clause to the effect that trust was irrevocable, that the absence of dissolution clause was against the provisions of Bombay Public Trust Act,1950, that clause 13(f) of the Trust Deed declared the applicant trust to be irrevocable for all times, that the irrevocability was always qua the settler, that the said clause could not b....

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....ere was no need to provide for a separate dissolution clause in the deed, that the registration u/s. 12AA of the Act could not be disallowed on the basis of  absence of dissolution clause.The AR relied upon the case of Tara Edu -cation and Charitable Trust(ITA/1247/Mum/2013 dt.18.7.2014 AY 2013-14).He also relied upon case of Geeta Lalwani Foundation(ITA/3566/Mum/2013 AY 2013-14 dt. 2.1.2015).Departmental Representative(DR)supported the order of the DIT(E). 4.We have heard the rival submissions and perused the material before us.We find that the DIT-E had denied the registration to the assessee-trust because he was of the opinion that in absence of the dissolution-=clause trust was not entitled for registration.We find that in the cas....