Bombay High Court
The Commissioner Of Income Tax ... vs Sneha And Sanna Foundation on 9 January, 2019
Author: B. P. Colabawalla
Bench: Akil Kureshi, B. P. Colabawalla
3.ITXA.1051.16..doc
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
ORDINARY ORIGINAL CIVIL JURISDICTION
INCOME TAX APPEAL NO. 1051 OF 2016
The Commissioner of Income Tax(Exemption)
Mumbai ..Appellant
Vs.
Sneha and Sanna Foundation,
Mumbai ..Respondent
Mr. Tejveer Singh, for the Appellant.
CORAM:-AKIL KURESHI &
B. P. COLABAWALLA, JJ.
DATE :- JANUARY 9, 2019.
P. C.:
The Revenue has preferred the Appeal against the judgment of the Income Tax Tribunal raising following question for our consideration:-
"Whether, on the facts and in the circumstances of the case and in law, the ITAT is holding the assessee trust is entitled to registration u/s 12A in the absence of "Dissolution Clause" in the Trust Deed?"
2 The learned counsel for the Revenue candidly pointed out that such an issue has been examined by this Court in Income Tax Appeal No. 247 of 2015 in the case of CIT(Exemption) Aswale 1/2 ::: Uploaded on - 10/01/2019 ::: Downloaded on - 11/01/2019 03:05:42 :::
3.ITXA.1051.16..doc v/s Tara Educational and Charitable Trust decided on 31st July, 2017 and the Revenue Appeal is dismissed.
3 In the said judgment, the Court made following observations:-
"4.The registration of the Trust has to be done on compliance of the provisions of Section 12AA of the Act. The authority is required to consider the genuineness of the activities of the Trust and the section does not lay down that unless and until the clause of dissolution of the Trust is incorporated in the Trust Deed, the Trust cannot be registered.
5.The statute takes care of the apprehension as is shown by the Director of Income Tax (Exemptions). The authority has observed that in case the objects/activities of the Trust cannot be carried out and it has to be dissolved, the corpus and properties remain on the date of the dissolution transferred. The absence of the clause of dissolution in the T?rust Deed would be in no manner an impediment int he operation of the statute. Section 55 of the Maharashtra Public Trust Act takes care of such contingency. The Tribunal in its order has considered the scope of Section 12A of the Act and has rightly passed the order."
4 In the result, the Tax Appeal is dismissed.
( B. P. COLABAWALLA, J. ) ( AKIL KURESHI , J. ) Aswale 2/2 ::: Uploaded on - 10/01/2019 ::: Downloaded on - 11/01/2019 03:05:42 :::