SHRI MEGHJI RAVJI & HANSBAI MEGHJI RAMBHIYA PUBLIC CHARITABLE TRUST,MUMBAI vs. COMMISSIONER OF INCOME TAX (EXEMPTION), MUMBAI

In this appeal, the assessee has raised the following grounds of appeal. “1. The Learned Commissioner of Income Tax (The CIT(E)) erred in rejecting the application for granting registration U/s 12A of the Act on the Ground of Non- inclusion of irrevocability or dissolution clause in Trust Deed/ MOA and specified violation as per explanation (g) to the Section 12AB (4) of the Income Tax Act, 1961. 2. The learned CIT(E) erred in rejecting the application for Registration without giving adequate opportunity of being heard or submit required explanation and without giving any Show Cause or specific opportunity as required by law before rejection, violating the principles of natural justice and hence, it is bad in law and lacs legal infirmity. 3. The learned CIT(E) erred in rejecting the application for registration stating specified violation as per explanation (g) to the Section 12AB (4) of the Income Tax Act, ,1961in mentioning YES in the application in Form 10AB for the question Whether the trust deed contains clause that the trust is irrevocable particularly without there been any reference in Income tax Act/ Rules for application of registration u/s 12A of Income tax Act, 1961 in respect of the same and hence making it is bad in law and lacks legal infirmity.”

On perusal of the order passed by the Ld. CIT(E), it is noticed that registration to the assessee was denied on the ground that the trust deed of the assessee did not specify the irrevocable nature of the trust. It is observed that an identical issue came up for consideration before the Hon’ble Jurisdictional High Court in the case of Chamber of Tax Consultants and Others vs. CIT reported in 184 taxmann.com 374, wherein the Hon’ble Jurisdictional High Court held that registration u/s

In the result, the appeal of the assessee is allowed for statistical purposes.