2013 (5) TMI 1081

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....n for grant of approval of registration u/s.12AA of the Act on the ground that dissolution clause is not properly mentioned in Memorandum of Association & Article of Association of the appellant trust. 2. Learned Commissioner of Income Tax has further erred in rejecting application for grant of approval of registration u/s.12AA of the Act on the ground that appellant trust not able to explain the use of the assets on dissolution of the trust except to make necessary arrangement. 2. We have been informed that the assessee-trust has moved an application for Registration u/s.12AA before the ld. Commissioner of Income-tax, however the same was rejected in the following manner:- "The above noted Trust has filed application f....

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....that the trust is duly registered under Bombay Public Trust and in support a Registration Certificate is placed on record. It has also been informed that the Trust is registered as per Societies Registration Act, 1860. We have also been informed that as per clause-17 of the Article of Association of the Trust, there is a clause of Dissolution in the following manner:- "(17) Unforeseen circumstances Due to unforeseen circumstances if the position to close the trust arises than after making arrangement of immovable & movable assets, trust can be dissolved". 3.1. Ld.AR has also drawn our attention on the objects of the trust; which states as under:- "OBJECTIVES OF TRUST This organization works without any....

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.... the case of Self Employers Service Society vs. CIT (2001)247 ITR 18 (Ker.). 5. We have heard both the sides. We have also perused the relevant orders. As far as the argument of ld. DR is concerned, we may like to appreciate the same that a trust-deed can incorporate a clause in respect of vesting of assets of a trust in case of dissolution, but we cannot approve any apprehension to be conceived at the initial stage of registration of a trust. The Revenue Department has other ways and mean to overcome such an apprehension now raised by the ld. DR Mr. D.K. Singh. In our humble understanding the procedure for registration as incorporated by the IT Act u/s.12AA is that a Commissioner on receipt of an application for registration of a trust ....