S. Ravindra Bhat; C.J. - (1.) Income Tax Appeal No. 171/2018: 1. The question of law framed in this appeal by the Revenue is as follows:- "Whether the Income Tax Appellate Tribunal under the order dated 07.09.2015 is justified in accepting the assessee's claim for registration as per provisions of Section 12AA of the Income Tax Act, 1961 irrespective of the fact that the Constitution/Bye-laws of the Trust is not having any provision in relation to disbursement of balance funds in the eventuality of the dissolution of Trust ?"
(2.) Brief facts of the case are that the establishment of the Narsinghji Ka Mandir, Gandhiyon Ki Gali, Jalori Gate, Jodhpur applied for registration under Section 12-A of the Income Tax Act and sought exemption. The Commissioner of Income Tax sought for certain details and information and the applicant produced the copy of the Trust Deed and other relevant materials. The CIT (Exemption) denied the benefit of registration and consequently, exemption under Section 12-A on the sole ground that in the contingency of the dissolution (of the Trust), the devolution and the division of the property have not been provided for. The Commissioner was of the opinion that use of the property as Trust had to be protected, and in the event of its dissolution too, without adequate provision for that purpose, assets could be dissipated.
(3.) The applicant Trust urged that it was an old establishment and Temple was a historical one. The Trust was duly registered with the Devasthan Department in 1975 and had duly complied with all other provisions and stipulations spelt out in Section 12-A. It was emphasized that dissolution of the Trust was an uncertain future event and absence of any condition to care for it, could not be a valid ground for rejection of the application.;