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(iii) Receipts and Payments Account, Income & Expenditure Account and Balance Sheet as at 31.3.2008 and 31.3.2009.

(iv) Details of assessment particulars of the trustees as well as break-up details of trustees' contributions together with sources thereof.

3. When nobody appeared to answer the above queries, notices were sent repeatedly and finally on 14.8.2009, Shri V.S. Venkat Pati, CA, appeared and the case was discussed with him. It was noticed by the ld. CIT from para 8 at page 9 of the trust deed that the delegation of all or any of the powers, authorities and directions vested in the trustees generally, has been incorporated, which he found to be vague and against the spirit of execution of such public charitable trust deed. It was also noted that clause (p) of the trust deed speaks about addition/deletion or amendment of any of the powers of the trustees which he found to be not permissible. Likewise, clause(q) permitted the addition of any other object(s) provided wholly educational and charitable in nature. From this clause, the ld. CIT inferred that this provision may be used to the very purpose of formation of such charitable trust. The objects of the trust mentioned in the deed were, however, found to be charitable in nature. But the powers given in the manner stated above, to amend the trust deed arbitrarily at the whims and fancies of the trustees according to the ld. CIT, would render the object clauses simply vague and is not permission in view of the decision of the Hon'ble Jurisdictional High Court rendered in the case of CIT vs P. Bhandari, 147 ITR 500. With these observations, which remained unreplied, the ld. CIT refused to grant registration sought for by the assessee-trust. Now the assessee-trust is aggrieved and has raised following grounds in its appeal:

"1. The order of The Commissioner of Income Tax, Salem dated 28.8.2009 in C.No.9755(146)/SLM/2008-09 in refusing registration in terms of Section 12 AA of Income Tax Act, 1961 is contrary to law, facts, and in the circumstances of the case.

2. The CIT erred in rejecting the application filed for registration u/s 12 AA of the Act without assigning proper reasons and justification.

3. The CIT failed to appreciate that the objects of the Trust were charitable within the scope of Section 2(15) of the Act and having not disputed the nature of such objects, the rejection of the prayer for registration u/s 12AA of the Act was wrong, incorrect, unjustified, erroneous and not sustainable both on facts and in law.