Charitable purpose : Registration u/s.12A of Income-tax Act, 1961 : Rejection on the ground that amended deed not produced : Amended deed is not a pre-requisite condition : Matter remanded.

[CIT v. R. M. S. Trust,
326 ITR 310 (Mad.)]

The assessee, a charitable
trust, came into existence on December 1, 1995. On 10-3-2006 the assessee-trust
filed application for registration u/s.12A. The application was belated by more
than 10 years for which condonation petition was filed stating that the delay
was due to ignorance of law. The Commissioner of Income-tax noticed that the
requisite clause indicating that any amendment to the trust deed would be
carried out after obtaining approval from the Commissioner of Income-tax, has
not been incorporated, and on that ground directed the assessee-trust to file an
amended deed duly registered along with notes on the activities of the trust
with regard to various expenses debited in the income and expenditure account.
The assessee did not respond to the letter. Therefore, the Commissioner held
that the assessee-trust was not entitled to registration u/s.12AA and exemption
u/s.80G(vi) of the Act. The Tribunal allowed the assessee’s appeal.

On appeal by the Revenue,
the Madras High Court upheld the decision of the Tribunal and held as under :

“(i) The amended trust
deed is not a pre-requisite as required by the Commissioner and it is also not
a pre-requisite condition for registering the applicant as a trust as per the
provisions of the Act. The requisition made by the Commissioner is an
extra-statutory requisition.

(ii) Hence, the Tribunal,
by reason of the impugned order, had set aside the rejection made by the
Commissioner and remitted to decide the issue afresh after affording a
reasonable opportunity of being heard.

(iii) We do not find any
reason to interfere with the order of the Tribunal.”