Shri Ayodhya Tatha Shri Ratanpuri Jain Swetamber Tirath Trust, Delhi V. CIT(E), New Delhi

ITA 380/DEL/2021

• Counselvise Citation: [2022] 104 COUNSELVISE.COM (IT) 9563 (ITAT-DELHI)
• Duration Of Justice: 1 year(s) 5 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-09-2022
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: misc
• Appeal Filed On: 04-04-2021
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: J.K. JAIN
• Section: 12A

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES “G” : DELHI BEFORE SHRI CHANDRA MOHAN GARG, JUDICIAL MEMBER AND SHRI PRADIP KUMAR KEDIA, ACCOUNTANT MEMBER ITA.No.380/Del./2021 Under Section 12A of I.T. Act, 1961. Shri Ayodhya Tatha Shri Ratanpuri Jain Swetamber Tirath Trust, Flat No.B- 9/13, Vallabh Vihar, Sector-13, Plot No.14, Rohini, New Delhi-110085 PAN AAMTS2236A [vs. The Commissioner of Income Tax (Exemptions), 25 th Floor, E-2 Block, Civic Centre, New Delhi. PIN 110 002 (Appellant) (Respondent) For Assessee : Shri J.K. Jain, C.A. For Revenue : Ms. Rakhi Vimal, CIT-DR Date of Hearing : 29.09.2022 Date of Pronouncement : 30.09.2022 ORDER PER CHANDRA MOHAN GARG, J.M. This appeal by Assessee-Trust has been directed against the Order of the Ld. CIT(E), New Delhi, dated 29.01.2021. 2 ITA.No.380/Del./2021 Shri Ayodhya Tatha Shri Ratanpuri Jain Swetamber Tirath Trust, Delhi. 2. During the course of hearing, the Learned Counsel for the Assessee submitted that the Ld. CIT(E) has dismissed the application of assessee for grant of registration under section 12A of the I.T. Act, 1961 by observing that in absence of irrevocable and dissolution clauses, the objects of the Trust cannot be amended at any time as well as the beneficiaries which may after purpose for which the Trust was incorporated in absence of irrevocable and dissolution clauses. The Learned Counsel for the Assessee drawing attention towards paras 4 and 5 of the impugned order of the Ld. CIT(E) submitted that the appellant was not allowed due opportunity by the Ld. CIT(E) and he passed the impugned order in a hasty manner without allowing the assessee to include irrevocable and dissolution clauses in the Trust Deed. He further explained that the appellant-trust by way of amendment registered on 27.10.2021 has included dissolution and irrevocable clauses to the Trust Deed and, therefore, the defect pointed out by the Ld. CIT(E) has been cured and thus, the assessee 3 ITA.No.380/Del./2021 Shri Ayodhya Tatha Shri Ratanpuri Jain Swetamber Tirath Trust, Delhi. is entitled for registration under section 12A of the I.T. Act, 1961. 3. Replying to the above, the Ld. D.R. submitted that the Ld. CIT(E) has passed the impugned order on 29.01.2021 whereas the appellant by way of addition to the Original Trust Deed vide amendment registered on 27.10.2021 has included the irrevocable and dissolution clauses and, therefore, the Ld. CIT(E) cannot be alleged as not considering the relevant facts and circumstances of the case and not allowing due opportunity of hearing to the assessee. 4. Placing rejoinder to the above, the Learned Counsel for the Assessee submitted that the factum of inclusion/amendment to the original Trust Deed dated 05.08.1948 can be verified from the original as well as copies of the original and inclusion documents which was properly registered on 28.10.2021, therefore, the assessee is very well entitled for registration under section 12A of the I.T. Act, 1961. 4 ITA.No.380/Del./2021 Shri Ayodhya Tatha Shri Ratanpuri Jain Swetamber Tirath Trust, Delhi. 5. On careful consideration of the above submissions, first of all, we may point out that the Ld. CIT(E) rejected the application of assessee for grant of registration under section 12A of the I.T. Act, 1961 by observing that Trust Deed does not contain the irrevocable and dissolution clauses, therefore, in absence of irrevocable clauses, the object as well as beneficiaries can be modified any time. Further the Trust Deed does not satisfies that in the event of dissolution how the Trust fund would be utilized. The Ld. D.R. has not disputed the very relevant factum that after dismissal of application for grant of registration under section 12A of the I.T. Act, 1961 by the Ld. CIT(E) vide order dated 29.01.2021 the appellant has amended original Trust Deed dated 05.08.1948 by way of registered addendum dated 27.10.2021 which was not in existence at the time of passing the impugned order by the Ld. CIT(A). Therefore, in our considered opinion, the Ld. CIT(E) should be granted an opportunity to examine the registered addendum dated 27.10.2021 to the original Trust Deed dated 05.08.1948 and to reconsider the application of 5 ITA.No.380/Del./2021 Shri Ayodhya Tatha Shri Ratanpuri Jain Swetamber Tirath Trust, Delhi. the appellant dated 19.02.2020 filed in Form No.10A seeking registration under section 12A of the I.T. Act, 1961. In view of our foregoing observations, we restore the matter to the file of Ld. CIT(E) for fresh adjudication of application of assessee dated 19.02.2020 for grant of registration under section 12A of the I.T. Act, 1961. Needless to say that the assessee shall be allowed due opportunity of hearing during the re-adjudication process. Accordingly, appeal of the assessee is allowed for statistical purposes. 6. In the result, appeal of the Assessee is allowed for statistical purposes. Order pronounced in the open Court on 30.09.2022. Sd/- Sd/- [PRADIP KUMAR KEDIA] [CHANDRA MOHAN GARG] ACCOUNTANT MEMBER JUDICIAL MEMBER Delhi, Dated 30 th September, 2022 VBP/- Copy to 1. The appellant 2. The respondent 3. Ld. CIT(A) concerned 4. CIT concerned 5. DR ITAT “G” Bench, Delhi 6. Guard File //By Order// Assistant Registrar, ITAT, Delhi Benches, Delhi.