HAJRAT BABA LODHISHAH BAHUDDESHIYA SHIKSHAN SANSTHA,NAGPUR vs. COMMISSIONER OF INCOME TAX ( EXEMPTION ), PUNE

This is an appeal filed by the assessee against the order of ld.CIT(E), Pune under section 12AA of the Income Tax Act, 1961 dated 28.09.2017. Hajrat Baba Lodhishah Bahuddeshiya Shikshan Sanstha [A]

At the outset of hearing, no one appeared on behalf of the assessee.

Thus, the ld.CIT(E) himself stated in the order that prima- facie objects of the assessee are charitable in nature. The Commissioner has never doubted about the genuineness of the activities in the order. He rejected it only on one ground i.e. absence of “Dissolution Clause” in the Trust Deed. In the facts statement filed by the assessee along with appeal memo, it is Hajrat Baba Lodhishah Bahuddeshiya Shikshan Sanstha [A] submitted by assessee that they have aggreed to add “Dissolution Clause” and assured the same to the Commissioner during the hearing. It is also mentioned in the facts of the case that Trust fulfilled all the conditions laid down under section 12AA of the Act.

The Hon'ble Gujarat High Court in the case of CIT Vs. Tapagachha Sangh Mota [2015] 59 taxmann.com 204 (Gujarat) has held as under : “In a given case even in absence of any provision in the trust with respect to "dissolution clause" if on facts the trust is found to be genuine and/or genuineness of the trust is established, the trust may be entitled to registration under Section 12 AA of the Act, however subject to fulfillment of conditions under Section 12 AA of the Act i.e. when the Commissioner is satisfied about the genuineness of the activities of the trust or the institution.”

Thus, the Hon'ble Gujarat High Court has held that if Trust fulfilled all other conditions, then the Trust will be eligible for registration even in the absence of Dissolution Clause in the Trust Deed. We have already mentioned that in this case, the ld.Commissioner was satisfied about the charitable nature of the objects. The ld.Departmental Representative for the Revenue has not brought to our notice any contrary decision of Jurisdictional High Court. In these facts and circumstances of the case, we direct the ld.CIT(E) to grant registration under Hajrat Baba Lodhishah Bahuddeshiya Shikshan Sanstha [A] section 12AA of the Act, accordingly grounds of appeal raised by the assessee are allowed.