Bombay High Court
The Commissioner Of Income Tax ... vs Sankalp Siddhi Seva Trust on 15 January, 2019
Bench: Akil Kureshi, M.S. Sanklecha
10. os itxa 1050-16.doc
R.M. AMBERKAR
(Private Secretary)
IN THE HIGH COURT OF JUDICATURE AT BOMBAY
O.O.C.J.
INCOME TAX APPEAL NO. 1050 OF 2016
The Commissioner of Income Tax (Exemption) .. Appellant
Versus
Sankalp Siddhi Seva Trust .. Respondent
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Mr. Tejveer Singh for the Appellant
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CORAM : AKIL KURESHI &
M.S. SANKLECHA, JJ.
DATE : JANUARY 15, 2019.
P.C.:
1. Revenue is in the appeal against the Judgment of the Income Tax Appellate Tribunal ("the Tribunal" for short) dated 16.9.2015 raising following substantial question for our consideration:-
" Whether on the facts and in the circumstances of the case and in law, the Tribunal is holding the assessee trust is entitled to registration under Section 12A in the absence of "Dissolution Clause"
in the Trust Deed?"
2. Revenue's objection is to the registration of the respondent - Trust on the ground that the Trust Deed did not contain a dissolution clause. We note that this Court in the case of CIT (Exemptions) Vs. Tara Educational & 1 of 2 ::: Uploaded on - 16/01/2019 ::: Downloaded on - 17/01/2019 23:19:49 :::
10. os itxa 1050-16.doc Charitable Trust (Income Tax Appeal No. 247 of 2015 decided on 31.7.2017) considered such a question in following manner:-
"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 Trust Deed would be in no manner an impediment in the 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.
6. No substantial question of law arises. The appeal, as such, is dismissed. No costs."
3. In the result, the appeal is dismissed. [ M.S. SANKLECHA, J. ] [ AKIL KURESHI, J ] 2 of 2 ::: Uploaded on - 16/01/2019 ::: Downloaded on - 17/01/2019 23:19:49 :::