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2. The assessee craves to amend, alter and modify any of the grounds of appeal.

2 ITA 504/JP/2018_ Shri Sukh Lal Rathi Charitable Trust Vs. CIT(E)

3. Necessary cost be allowed to the assessee."

2. The ld AR of the assessee has submitted that the assessee is a Religious Public Trust constituted on 23/10/1933 by Shri Sukh Lal Rathi, Suraj Mal, Chand Mal and Kesar Mal. The assessee Trust was granted registration U/s 12A of the Act on 14/10/1974. However, the registration certificate dated 14/10/1974 was got misplaced and therefore, the assessee requested the department to provide a certified copy of the said certificate. The department has expressed its inability to provide the certified copy by citing the reasons that the office of the CIT(E) was not in a position to provide the same, as communicated vide letter dated 11/04/2013. Therefore, the assessee was left with no option but to apply for registration by filing the application dated 19/09/2017 before the ld. CIT(E). The ld AR has pointed out that since beginning the assessee was granted benefit of Sections 11 and 12 of the Act and even for the A.Y. 1977-78, the matter was taken up to this Tribunal and vide order dated 26/8/1981, the Tribunal held that the assessee is a Public Religious Trust entitled for exemption U/s 11 of the Act. Thus, the assessee was considered to be a Public Religious Trust and eligible for benefit of Sections 11 and 12 of the Act. The ld AR has pointed out that the ld. CIT(E) has refused to grant of registration U/s 12A of the Act on four points comprising non-furnishing of the original document of creation of 3 ITA 504/JP/2018_ Shri Sukh Lal Rathi Charitable Trust Vs. CIT(E) the assessee Trust, absence of dissolution clause in the Trust document, the difference of name in Form No. 10A and PAN details of the assessee Trust and non-submitting of the financial accounts for the F.Y. 2016-17. The ld AR has submitted that as far as the original document is concerned, the assessee is having the original document and ready to produce before the Bench for verification, though a copy of the said document was already produced before the ld. CIT(E). It is a registered document and therefore, there is no scope to doubt the genuineness of the document when the assessee was already granted registration U/s 12A of the Act vide order dated 14/10/1974. The ld AR has produced the original Trust Deed before the Bench and a translated copy alongwith copy of the original deed in the paper book. As regards the second objection of the ld. CIT(E) regarding absence of dissolution clause in the Trust Deed, the ld AR has submitted that at the time of registration what is required to be considered by the ld. CIT(E) is the objective of the Trust and genuineness of the activity. Once the genuineness of the activities are not in doubt then merely because there is no specific dissolution clause, the registration cannot be refused. In support of his contention, he has relied upon the decision of Hon'ble Gujarat High Court in the case of CIT Vs. Tapagachha Sangh Mota 232 Taxman 715 and submitted that the Hon'ble High Court has categorically held that even in absence of any provisions in the Trust with respect to the 4 ITA 504/JP/2018_ Shri Sukh Lal Rathi Charitable Trust Vs. CIT(E) dissolution clause if on facts, the Trust is found to be genuine or a genuineness of the Trust is established, the Trust is entitled for registration U/s 12AA of the Act subject to fulfillment of the other conditions U/s 12AA of the Act. He has also relied upon the decision of the Coordinate Bench of the Tribunal in the case of Sidha Sthan Shri Kapaleshwar Mahadev Sanyas Ashram Trust Vs. CIT(E) 191 TTJ 131 and submitted that the Tribunal has also considered an identical issue and held that the refusal of registration on the ground of absence of dissolution clause is not justified and the ld. AR has submitted that even if there is no special clause in the Trust Deed there are other clauses taking care of the situation and providing sufficient safeguard against the misuse of the property of the Trust. He has referred various clauses of the Trust Deed and submitted that as per clause '(Kha)' of the Trust Deed, there is a restriction of sale, mortgaged or donation of any property of the Trust by the Trustees or any other person. Further as per clause '(Tha)', the Trustee cannot use any property of the Trust for their own purpose or can take any economic profit from the Trust even for the services rendered. In case of closure of the activity of the Trust or Trustees are not interested to carry out the activities of the Trust, the provisions of Indian Trust Act as well as Rajasthan Public Trust Act, 1959 take care of the situation. Thus, 5 ITA 504/JP/2018_ Shri Sukh Lal Rathi Charitable Trust Vs. CIT(E) the ld AR has submitted that absence of specific dissolution clause in the Trust Deed cannot be a ground for rejection of registration. 2.1 The next objection of the ld. CIT(E) is regarding discrepancy in the name of the Trust as appearing in the Form No. 10A and the PAN details, in this regard, the ld AR has submitted that the assessee has subsequently got the PAN details rectified and now the name of the assessee Trust in the PAN is in accordance with the name of the assessee Trust in the registration certificate issued by the Devsthan Vibhag, Jaipur. The ld AR has pointed out in the PAN prefixed 'Shri' was not before the name of the Trust which is subsequently corrected and a copy of the new rectified PAN details has been filed. Therefore, when the assessee is in existence since 1933 and also granted registration in the year 1974 then such a minor mistake of not prefixing 'Shri' in the name of the assessee Trust in the PAN card cannot be taken as a serious lapse. As regards the non-production of final accounts for the F.Y. 2016-17, the ld AR has referred to the letter dated 12/3/2018 and submitted that the assessee produced the final accounts, however, on the same date, the ld. CIT(E) passed the impugned order and therefore, these accounts were not considered. Hence, the ld AR has submitted that the impugned order is not sustainable when none of the objections raised by the ld. CIT(E) is not relevant or so significant to refuse the registration.

Therefore, if the other conditions as provided U/s 12AA of the Act are satisfied then the registration cannot be denied merely because of absence of the dissolution clause in the Trust Deed because there are adequate safeguards of the Trust property even in case of closure of the activity of the Trust as per the provisions of Indian Trust Act as well as Rajasthan Public Trust Act, 1959. Other than the dissolution clause we find that the Trust Deed provides irrevocable nature of the Trust and therefore, in the event of dissolution or closure of the activity, the provisions of the Indian Trust Act and Rajasthan Public Trust Act, 1959 will take care of the situation. The Coordinate Bench of the Tribunal in the case of Sidha Sthan Shri Kapaleshwar Mahadev Sanyas Ashram Trust Vs. CIT(E) (supra) has also considered this issue in para 12 to 14 as under:
13 ITA 504/JP/2018_ Shri Sukh Lal Rathi Charitable Trust Vs. CIT(E)
13. The limit issue raised by the Id. CIT(E) relates to absence of the dissolution clause in the trust deed dated 11.02.1998. In this regard, the Id. AR has drawn our reference to the relevant clause at page 15 of the trust deed (referred above) and submitted that neither the trust nor any member of the trust is empowered to sell any part of the property of the trust. To our mind, the event of sale of the assets or the property of the trust could be during the continuation of the trust or at the time of its dissolution. This clause therefore effectively restricts the sale of the property of the trust at all times. But can it be said that the trust which holds such property cannot be dissolved at all times to come and what are the consequences thereto. In our view, the matter relating to the dissolution and the consequences thereof has not been spelt out in the trust deed.
14. Now coming to the another contention of the Id AR that it is a public charitable trust registered with Devsthan Vibhag and in the event of dissolution of the trust, all the assets and properties of the trust shall vest with the Charitable Commissioner Devsthan Vibhag, Government of Rajasthan in accordance with the relevant provisions of the Rajasthan Public Trust Act, 1959. Here, we refer to the decision of the Coordinate Bench in case of Sitaram Kutir Charitable Trust v. CIT (supra) wherein it was held that "in case the trust registered with the Sub-registrar as a charitable trust and the trust being an irrevocable trust, the obvious position shall be that the Charity Commissioner should take over the assets on dissolution; hence rejection of registration by the Id. Commissioner on the ground that there was no specific clause in the instrument in regard to the treatment to be given in the vent of dissolution was not on a sound footing." We have no hesitation but to concur with the view taken by the Coordinate Bench and we accordingly, find force in the above-said contention of the Id AR. At the same time, we find that there is no specific findings of the Id CIT(E) regarding whether 14 ITA 504/JP/2018_ Shri Sukh Lal Rathi Charitable Trust Vs. CIT(E) the trust is a irrevocable trust or not, and whether the assessee trust is registered with the Devsthan Vibhag and the consequences on its dissolution as contented by the Id AR. We are accordingly setting aside the matter to file of the Id. CIT(E) to examine the above said contentions of the Id AR and where the same is found to be correct, grant the necessary registration u/s 12AA of the Act."