TaxTMI 
TaxTMI 
2026 (7) TMI 864
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....registration u/s. 12AB and approval u/s. 80G of the Act. 2. Having heard both the sides and perusal of record, we find that Ld. CIT(E) has rejected the appellants application for registration u/s. 12AB on the ground of firstly absence of dissolution clause and secondly the benefit to interested person. The Ld. CIT(E) has stated that the appellant assessee has not furnished copy of land ownership document and that payment made to the Deepak Tak amounting to Rs. 7,01,000/- was for the purpose of another land acquisition at Sojat where Deepak Tak sold land on 08.06.2022 for Rs. 7,01,000/- to the trust at higher rate but the DLC of the land was Rs. 3,95,993/-which shows that assessee is making excess payment to the trustees. The CIT(E) furth....
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....rm basis. The AR argued that the objections so raised by the Ld. CIT(E) are not justified. The AR has also referred to the recent decision in the case of Hon'ble Bombay High Court in the Writ Petition filed by the Chamber of Tax Consultants, Writ Petition No. L(No.) 7587 of 2026 in order dated 09.03.2026, the Hon'ble Court held that absence of dissolution clause cannot be a basis to deny registration to the charitable trust. The AR further placed reliance to the judgment delivered by Hon'ble Allahabad High Court in case of CIT Vs. Red Rose School (2007) 212 CTR 394 (All.), wherein it was held that at the stage of registration, the CIT(E) has to examine objects and genuineness of activities and not the hypothetical future contingencies. The ....
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....elf indicates that at the time of dissolution of the trust, its assets would be utilized only towards the objects mentioned in the Trust Deed including educational, medical and other charitable activities for the public interest at large on a long term basis. 6. In the case of the Chamber of Tax Consultants (supra), the Hon'ble Bombay High Court has recently held that absence of dissolution clause is not a valid ground for rejection of registration by observing vide Para 45 as under: "In summary, we hold that a public charitable trust is deemed irrevocable by operation of law unless the instrument of trust expressly provides a power of revocation. The absence of an explicit irrevocability clause is not a ground for rejecting an ....
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....xemption) has made factually wrong observation regarding the payment to Mangi Lal Tak, by picking up an entry from the bank account as against the said amount of Rs. 5,00,000/- was paid to Vijay Suri Education Trust and not to Mangi Lal Tak. In our view, all these payments were made for the purpose for fulfilling the objects of the trust and the expenditure has been incurred to meet the objects of the charitable purpose of the trust. In view of that matter, it cannot be said that benefit has been given to a specified person in violation of Section 13(3) of the Act. 9. In the present case, the objects of the trust are genuinely charitable in nature and the activities which the trust proposed to carry on were genuine in the sense that they....