HARI DHAN TRUST, MUMBAI V. DIT (E), MUMBAI

ITA 2285/MUM/2013

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9271 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-03-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: H
• Next Hearing Date: 11-03-2015
• Assessment Year: 2013-2014
• Appeal Filed On: 22-03-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: NEENA SINGH
• Assessee Lawyers: DINESH SANGHVI TRUSTEE
• Section: 12A

Judgement Text

, , H , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES H, MUMBAI , , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI SAN JAY ARORA, ACCOUNTANT MEMBER ITA NO. 2285 /MUM/201 3 ASSESSMENT YEAR: 20 13 - 14 HARI DHAN TRUST 4, VAKHARIA HOUSE, N.S. ROAD NO.9 J.V.P.D.SCHEME MUMBAI - 400 0 49 . / VS. D IRECTOR OF I NCOME T AX (EXEMP.) 616, 6 TH FLOOR PIRAMAL CHAMBERS PAREL, MUMBAI - 4000 1 2 . ( / APPELLANT) ( / R ESPONDENT) P.A. NO. AABTH 0749 Q / ASSESSEE BY ) : SHRI DINESH SANGHVI - TRUSTEE / REVENUE BY : MS. NEENA S INGH PANDEY - CIT DR / DATE OF HEARING : 1 1 /03/2015 / DATE OF PRONOUNCEMENT : 11 /03/2015 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) : THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DATED 25.2.2013 OF THE LD. DIT(E), MUMBAI DENYING REGISTRATION U/S. 12A OF THE INCOME T AX ACT, 1961(HEREINAFTER THE ACT) TO THE ASSESSEE TRUST. 2 ITA NO. 7690 /MUM/20 11 2. DURING HEARING OF THIS APPEAL SHRI DINESH SANGHVI, TRUSTEE OF THE ASSESSEE TRUST, APPEARED IN PERSON AND ADVANCED HIS ARGUMENT WHICH IS IDENTICAL TO THE GROUND RAISED. ON THE OTHER HAND , MS. NEENA SINGH PANDEY, LD. CIT - DR DEFENDED THE CONCLUSION ARRIVED AT IN THE IMPUGNED ORDER BY SUBMITTING THAT THERE WAS NO DISSOLUTION CLAUSE IN THE TRUST DEED AND THE TRUSTEES ARE HAVING UNBRIDLED POWERS FOR DISTRIBUTING THE PROPERTY OF THE TRUST IN CASE IF THE T RUST IS DISSOLVED. 2.1 WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. THE FACTS IN BRIEF ARE THAT THE ASSESSEE TRUST WAS CONSTITUTED BY AN INDENTURE OF A TRUST DEED DATED 27.12.2011 AND WAS DULY REGISTERED WITH THE CHARITY COMMISSIONER. THE ASSESSEE APPLIED FOR GRANT OF REGISTRATION U/S. 12A OF THE ACT ON 30.8.2012 ALONG WITH NECESSARY DOCUMENTS /DETAILS. THE LD. DIT(E) EXAMINED THE APPLICATION OF THE ASSESSEE AND FOUND THAT THE TRUST DEED NOWHERE PROHIBITS THE TRUST EES TO DISTRIBUTE THE PROPERTY OF THE TRUST IN CASE OF WINDING UP/DISSOLUTION OF THE TRUST. WE FIND MERIT IN THIS OBSERVATION OF THE LD. DIT(E) IN DENYING REGISTRATION TO THE ASSESSEE . HOWEVER, IT IS NOWHERE DISPUTED THE CHARITABLE CHARACTER OF THE ASSESS EE TRUST. WE HAVE ALSO PERUSED THE TRUST DEED WHEREIN IT WAS ESTABLISHED FOR EDUCATION, RELIEF TO THE POOR, MEDICAL RELIEF AND ADVANCEMENT OF ANY OTHER CHARITABLE ACTIVITIES OF GENERAL PUBLIC UTILITY NOT INVOLVING OR CARRYING OUT ANY ACTIVITY PURELY FOR TH E SAKE OF EARNING PROFIT. AT THE SAME TIME THE DISSOLUTION CLAUSE NO.13 IS LOOSELY WORDED , PROVIDING DISCRETIONARY POWERS TO THE TRUSTEES. THEREFORE, THE ASSESSEE TRUST IS DIRECTED TO SUITABL Y AMEND THE DISSOLUTION CLAUSE WITHIN THE FRAMEWORK OF THE ACT AN D ALSO ANY OTHER CLAUSE, IF ANY, FOUND TO BE CONTRARY TO THE 3 ITA NO. 7690 /MUM/20 11 OBJECTS OF THE ASSESSEE TRUST AND THE APPROACH THE OFFICE OF THE LD. DIT(E) FOR HIS SATISFACTION AND NECESSARY ACTION. IT IS CLARIFIED THAT IF THE NECESSARY AMENDMENT IS NOT MADE BY THE ASSESSEE TRUST, THE LD. DIT(E) IS FREE TO DECIDE IN ACCORDANCE WITH LAW. THUS, THE APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSES ONLY. THIS ORDER WAS PRONOUNCED IN THE OPEN COURT IN THE PRESENCE OF LD . REPRESENTATIVES FROM BOTH SIDES AT THE CONCLUSION OF THE HEARING ON 11 /03/2015. 11 / 0 3 / 2015 ( SANJAY ARORA ) ( JOGINDER SINGH ) / ACCOUNTANT MEMBER / JUDICIAL MEMBER MUMBAI; DATED : 11 /03/2015 JV, SR. P.S./ . . . / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT. 3. ( ) / THE CIT, MUMBAI. 4. / CIT(A) - , MUMBAI 5. , , / DR, ITAT, MUMBAI 6. / GUA RD FILE. / BY ORDER, //TRUE COPY// / (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI .