Puriben Tulsidas Kaneriya Charitable Trust, RAJKOT-GUJARAT V. The Commissioner of Income Tax-III, RAJKOT-GUJARAT

ITA 387/RJT/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 85416 (ITAT-RAJKOT)
• Duration Of Justice: 1 year(s) 1 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 25-11-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 25-11-2014
• Assessment Year: misc
• Appeal Filed On: 22-10-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: M L MEENA
• Assessee Lawyers: RD LALCHANDANI
• Keywords: Charitable institution
• Section: 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL AT RAJKOT . . , , , BEFORE S/SHRI G.C. GUPTA, VICE - PRESIDENT AND ANIL CHATURVEDI, ACCOUNTANT MEMBER) ITA NO . 387 / RJT /20 1 3 PURIBEN T ULSIDAS KANERIYA CHARITABLE TRUST C/O. KANERIYA OIL INDUSTRIES SAMRAT INDUSTRIAL AREA, GONDAL ROAD OPP: GOKULDHAM SOCIETY, RAJKOT. / VS. THE CIT, RAMGE - III RAJKOT. ( / APPELLANT) ( / RESPONDENT) / ASSESSEE BY : SHRI R.D. LALCHANDANI / REVENUE BY : SHRI M.L. MEENA, DR / DATE OF HEARING : 2 5 TH NOVEMBER, 2014 / DATE OF PRONOUNCEMENT : 25 TH NOVEMBER, 2014 / O R D E R PER G.C. GUPTA, VICE - PRESIDENT : TH IS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF THE CIT - III, RAJKOT REFUSING REGISTRATION UNDER SECTION 12AA OF THE IT ACT, 1961. 2. THE GROUNDS OF THE APPEAL OF THE ASSESSEE ARE AS UNDER: 1. TH E LD.CIT ERRED IN REJECTING THE APPLICATION FOR TRUST REGISTRATION U/S.12AA OF THE ACT HOLDING THAT THE TRUST DEED IS INCOMPLETE AND THE CLAUSE OF WINDING UP IN CASE OF DISSOLUTION OF TRUST IS AB SENT. ITA NO. 387 / RJT /20 1 3 - 2 - WITHOUT PREJUDICE TO GROUND NO.1 THE REJECTION IS NOT WARRANTED TO THE FACTS OF THE CASE. 2. THE CIRCUMSTANCES AND THE FACTS OF THE CASE, THE ACTION OF LD.CIT IN REJECTING THE REGISTRATION IS BEYOND HIS POWER AND JURISDICTION. THE SAME IS REQUIRED TO BE TREATED AS NULL AND VOID AND QUASHED ACCORDING. 3. THE LEARNED COUNSEL FOR THE ASSESSEE SUBMI TTED THAT THE LD.CIT - III, RAJKOT HAS REJECTED THE APPLICATION OF THE ASSESSEE FOR THE REGISTRATION UNDER SECTION 12AA OF THE ACT ON THE GROUND THAT THERE WAS NO SPECIFIC WINDING UP CLAUSE IN THE TRUST DEED, AND THEREFORE, THE TRUST DEED OF THE ASSESSEE - TRUST WAS INCOMPLETE. HE SUBMITTED THAT IT IS WELL SETTLED THAT THE REGISTRATION COULD NOT BE REFUSED ON THE GROUND OF NO WINDING UP CLAUSE IN THE TRUST DE E D. THE LEARNED DR RELIED ON TH E ORDER OF THE CIT. 4. WE HAVE CONSIDERED RIVAL SUBMISSIONS AND PERUSED THE ORDER OF THE CIT PASSED UNDER SECTION 12AA OF THE ACT. WE FIND THAT THE REGISTRATION UNDER SECTION 12AA OF THE ACT WAS REFUSED TO THE ASSESSEE - TRUST ON THE GROUND THAT THERE WAS NO SPECIFIC WINDING UP CLAUSE IN THE TRUST DEED OF THE ASSESSEE, AND THEREFORE, THE TRUST DEED OF THE ASSESSEE - TRUST WAS INCOMPLETE , IN SOFAR AS THERE WAS NO CLAUSE REGARDING THE ASSETS AFTER MEETING OF LIABILITIES IN CASE OF DISSOLUTION WAS INCORPORATED IN THE TRUST DEED. WE FIND THAT THE ISSUE IS NOW SETTLED WITH VARIOUS DE C ISION S OF THE HON BLE COURTS AND THE TRIBUNAL THAT THE REGISTRATION UNDER SECTION 12AA COULD NOT BE REFUSED TO THE ASSESSEE TRUST ONLY ON THE G R OUND THAT THERE WAS NO WINDING UP CLA USE IN THE TRUST DEED OF THE ASSESSEE - T RUST. HOWEVER, WE FIND THAT ISSUE OF GRANTING REGISTRATION UNDER SECTION 12AA OF THE ACT TO THE ASSESSEE - TRUST HAS NOT BEEN CONSIDERED BY THE CIT ON ITS MERITS, BY EXAMINING VARIOUS OBJECTS OF THE ASSESSEE - TRUST, AN D ACCORDINGLY, WE CONSIDER IT PROPER TO RESTORE THE ORDER OF THE CIT TO HIS FILE FOR PASSING DE ITA NO. 387 / RJT /20 1 3 - 3 - NOVO ORDER UNDER SECTION 12AA OF THE ACT ON MERITS AFTER CONSIDERING VARIOUS OBJECTS OF THE TRUST DEED, AND TO RECORD A FI N DING THAT WHETHER CONDITIONS FOR GR A N T OF REGISTRATION UNDER SECTION 12AA OF THE ACT ARE SATISFIED IN THIS CASE, AFTER ALLOWING DUE OPPORTUNITY OF HEARING TO THE ASSESSEE. WE DIRECT ACCORDINGLY. 5 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED ON 25 TH NOVEMBER, 2014. SD/ - SD/ - ( / ANIL CHATURVEDI) /ACCOUNTANT MEMBER ( . . /G.C. GUPTA) /VICE - PRESIDENT C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR, ITAT. BY ORDER AR, ITAT, RAJKOT