IN HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.247 OF 2015 CIT (EXEMPTIONS) )...APPELLANT V/s. TARA EDUCATIONAL & CHARITABLE TRUST)...RESPONDENT Mr.Ashok Kotangle a/w. Ms.Padma Divakar, Advocate for Appellant. Mr.Sanjiv Shah a/w. Ms.Reshmarani Nathani i/b. Khaitan and Co., Advocate for Respondent. CORAM : S.V.GANGAPURWALA & A. M. BADAR, JJ. DATE : 31st JULY 2017 P.C. : 1 order passed by Tribunal directing registration of respondent trust under Section 12A of Act is assailed. 2 Mr.Kotangle, learned counsel submits that registration of trust was not granted by authority CIT (Exemptions) to respondent on ground that Trust Deed avk 1/3 ::: Uploaded on - 02/08/2017 ::: Downloaded on - 03/08/2017 09:54:09 ::: 46-ITXA-247-2015.doc did not provide for clause regarding dissolution of trust. In absence of clause for dissolution of Trust, Trust could not have been registered. said order has been rightly passed by authority. No valid reason has been given for not incorporating dissolution clause in Trust Deed. In case objects and activities of Trust cannot be carried out, it has to be dissolved. Its corpus and properties remaining on date of dissolution have to be transferred to another Trust having similar objects. As no such clause is found in Trust Deed, Director of Income Tax (Exemption) has rightly rejected application for dissolution of Trust. 3 Mr.Sanjiv Shah, learned counsel for respondent, supports order. 4 registration of Trust has to be done on compliance of provisions of Section 12AA of Act. authority is required to consider genuineness of activities of Trust and section does not lay down that unless and avk 2/3 ::: Uploaded on - 02/08/2017 ::: Downloaded on - 03/08/2017 09:54:09 ::: 46-ITXA-247-2015.doc until clause of dissolution of Trust is incorporated in Trust Deed, Trust cannot be registered. 5 statute takes care of apprehension as is shown by Director of Income Tax (Exemptions). authority has observed that in case objects / activities of Trust cannot be carried out and it has to be dissolved, corpus and properties remain on date of dissolution transferred. absence of clause of dissolution in Trust Deed would be in no manner impediment in operation of statute. Section 55 of Maharashtra Public Trust Act takes care of such contingency. Tribunal in its order has considered scope of Section 12A of Act and has rightly passed order. 6 No substantial question of law arises. appeal, as such, is dismissed. No costs. (A. M. BADAR, J.) (S.V.GANGAPURWALA), J.) avk 3/3 ::: Uploaded on - 02/08/2017 ::: Downloaded on - 03/08/2017 09:54:09 ::: CIT (Exemptions) v. Tara Educational & Charitable Trust