2020 (2) TMI 1451

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... Trust, under Section 12A of the Income Tax Act. 2. Learned Counsel for the Appellant/Revenue, Mr. J. Narayanasamy, urged that in the present case, the Assessee Trust had simply not appeared before the learned Commissioner of Income Tax, who was considering it's application under Section 12A of the Income Tax Act, 1961, and after the remand by the learned Tribunal, the Commissioner of Income Tax had asked for seven informations/documents to be furnished by the Respondent/Assessee Trust. But, the Respondent/Assessee Trust simply did not appear thereafter before the Commissioner of Income Tax and therefore, it's application was dismissed for want of prosecution. 3. However, the Respondent Assessee Trust preferred an appeal befor....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ery of the Commissioner of Income Tax is also satisfied. As regards the meaning of 'Founder Trustee' in the Trust Deed is concerned, it has its natural meaning and no other meaning is required to be given to the said term. When the Trust Deed is signed by the founder trustees and later on some other trustees are inducted, then there is a clear difference between the two. It is not the case of the Revenue that the decisions are not taken by the majority and the trust is controlled by only one person. At the time of registration, until and unless something is apparent to show the irregularity and mismanagement, the existence and genuineness of the trust cannot be doubted. Since the Trust Deed is signed only by original founder members....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....levant only at the stage of assessment of income of the assessee and grant of exemption. Accordingly, we direct the Commissioner of Income Tax to grant the registration to the assessee u/s. 12A of the Income Tax Act from the date on which the application for registration was filed." 4. Learned counsel for the Appellant/Revenue has also relied on the judgment of the Supreme Court in the case of Commissioner of Income-tax (Exemptions) vs. Jagannath Gupta Family Trust (2019) 102 taxmann.com 34 (SC). 5. Mr. M.P. Senthil Kumar, learned counsel for the Respondent/Assessee Trust, however, submitted that the registration in pursuance of the order of the learned Tribunal passed in 2010 has already been granted to the Respondent/Assessee Trust ....