Held that mere fact that the trust deed of the assessee-trust contains a covenant that enables the settlor to utilize the premises for herself or her family cannot empower the CIT to cancel the registration, as it does not lead to any conclusion that either the activities of the trust are not genuine or the activities are not being carried out in accordance with the objects of the trust. Similarly, the fact that huge Investments are made in mutual funds cannot also lead to the conclusion that the activities of the trust are not genuine-Since the settlor has died in the year 1965, the relevant clause has become infructuous and thus there is no question of violation of provisions of s. 13(3). Investments in mutual funds are only in order to meet the statutory requirements of S. 11(5). Order cancelling the registration is set aside. Followed CIT(E) v. Institute Management Committee of Industrial Training Institute (2017) 293 CTR 167 / 148 DTR 74/ 393 ITR 161 (Bom) (HC)
Mr. & Mrs. S.M. Batha Education Trust v. CIT (2024) 164 taxmann.com 266/ 228 TTJ 20 (UO) (Pune) (Trib)
S. 12AA : Procedure for registration-Trust or institution-Cancellation of registration-Trust contains a covenant that enables the settlor to utilize the premises for herself or her family-Cancellation of registration is set aside. [S. 11(5), 12A, 12AA(3), 13 (3)]
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