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Mahavir Kund Kund Kahan Trust

(i) Trust-deed does not contain any Investment Clause, Dissolution Clause, Amendment Clause, Utilization Clause, Beneficiary Clause.

(ii) Objects are for the benefit of a particular community and not for public at large.

(iii) The activities are meagre

(iv) Audit-Report for Financial Year 2017-18 has not been submitted.

4. Aggrieved by the aforesaid order dated 25.09.2018 of Ld. CIT(E), the assessee has filed this appeal and now before us.

5. Ld. AR submitted that all of the objections raised by Ld. CIT(E) are either factually wrong or are not in accordance with the law. Although Ld. AR made an elaborate submission, we sum up the submissions of Ld. AR precisely as under:

(i) Objection No. 1 - Trust-deed does not contain any Investment Clause, Dissolution Clause, Amendment Clause, Utilization Clause, Beneficiary Clause:

Ld. AR carried our attention to Page No. 15 of the Paper-Book and demonstrated that the Para No. 8 of the Trust-Deed contains a clause titled "Investment of trust fund" which is "Investment Clause" required of the Paper-Book to show that Para No. 15(B) of the Trust-Deed titled "Special Important Rules" contains a clause saying "This trust will be permanent, no one will have the right to abolish it." Analysing this Clause, Ld. AR submitted that the assessee is a permanent trust and it cannot be dissolved by anyone. According to Ld. AR, this clause meet the requirement of Dissolution Clause. Ld. AR also submitted that with the introduction of new section 115TD read with section 13(1)(d) in Income-tax Act, 1961, there exits adequate over-riding provisions in the Income-tax Act law to deal with the dissolution of trusts, therefore incorporation or non-incorporation of a Dissolution Clause in the Trust-Deed does not make any difference for the Mahavir Kund Kund Kahan Trust purposes of Income-tax Act, 1961. Regarding "Amendment Clause", the Ld. AR carried our attention to Page No. 21 of the Paper-Book to show that Para No. 15(H) and 15(I) of the Trust-Deed titled "Special Important Rules" contains adequate provisions for amendments. Ld. AR also submitted that section 12A of the Income-tax Act, 1961 contains a specific provision requiring re-registration of trust in the event of any amendment or modification. Therefore, according to Ld. AR, incorporation or non-incorporation of Amendment Clause in the Trust-Deed does not make any difference for the purposes of Income- tax Act, 1961. Regarding "Utilization Clause", Ld. AR carried our attention to Page No. 16 of the Paper-Book to demonstrate that the Para No. 9 of the Trust-Deed captioned as "Utilisation of the fund of the trust" deal with utilization aspect. Hence this is the "Utilisation Clause" required by Ld. CIT(E). Finally, regarding "Beneficiary Clause", the Ld. AR submitted that the trust is a Public-Trust registered under the provisions of Madhya Pradesh Public Trust Act and therefore entire public is beneficiary.