November 2018

Sections 12A and 12AA(3) Charitable purpose Registration of trust Cancellation of registration Grounds for Difference between objects of trust and management of trust No change in objects of trust Amendment in respect of appointment of chief trustee and manner of managing the trust Not ground for cancelling registration of trust

K. B. BHUJLE
Advocate

12. CIT(Exemption) vs. Sadguru Narendra Maharaj Sansthan; 407 ITR 12 (Bom):

Date of order: 28th February, 2018

 

Sections 12A and 12AA(3) Charitable purpose Registration of trust Cancellation of registration Grounds for Difference between objects of trust and management of trust No change in objects of trust Amendment in respect of appointment of chief trustee and manner of managing the trust Not ground for cancelling registration of trust

 

The assessee-trust amended its trust deed. The Commissioner recorded that the amendment to the trust deed devised a system by which the chief trustee would alone define his heir for the post of the chief trustee and adhishtata and that the heir could not take part in the management of the trust during the lifetime of the chief trustee. The Commissioner exercised his power u/s. 12AA(3) of the Income tax Act, 1961 (hereinafter for the sake of brevity referred to as the "Act") and cancelled the registration of the assessee on the ground that the amendment violated the provisions of section 13(1)(c).

 

The Tribunal held that the Commissioner had not appreciated the difference between the objects of the trust and the powers/management of the trust; the amendment of t

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