CIT(E) rejected the registration application under on ground that all initial trustees had taken citizenship of foreign country and thus there was violation of provisions of S 73 of Indian Trust Act, 1882. On appeal the Tribunal held that S. 73 of 1882 Act per se cannot invalidate a trust, but rather provides bar for appointment of non-resident as a trustee. S.60 of Trust Act only provides for a right of beneficiary to have proper trustees, but it does not impinge upon validity of trust. Accordingly the rejection of application is held to be not proper.
Global Academy of Emergency Medicine v. CIT (2018) 196 TTJ 273 / 171 DTR 73/ (2019) 175 ITD 96 (Delhi)(Trib.)
S. 12AA : Procedure for registration–Trust or institution- Registration cannot be refused on the ground that all initial trustees had taken citizenship of foreign country–Order of CIT(E) rejection of registration and application u/s 80G is set aside. [S. 80G , FEMA, 1999, S.6(5) Indian Trust Act 1882 , S. 10, 60, 73]