Retina Forum, New Delhi V. CIT (Exemptions), New Delhi

ITA 4540/DEL/2016

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 1259 (ITAT-DELHI)
• Duration Of Justice: 2 year(s) 9 month(s) 8 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 04-06-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: F
• Assessment Year: misc
• Appeal Filed On: 26-08-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SURENDER PAL
• Keywords: Charitable institution
• Section: 80G; 12AA

Judgement Text

IN THE INCOME-TAX APPELLATE TRIBUNAL, DELHI BENCH F, NEW DELHI BEFORE : SHRI H.S. SIDHU, JUDICIAL MEMBER AND SHRI B.R.R. KUMAR, ACCOUNTANT MEMBER ITA NO. 4540 & 4541/DEL/2016 RETINA FORUM, A - 9, KAILASH COLONY, NEW DELHI. PAN- AACTR6064P. (APPELLANT) VS. CIT (EXEMPTION), NEW DELHI (RESPONDENT) APPELLANT BY SH. SANJAY JAIN, C.A. RESPONDENT BY SH. SURENDER PAL, SR. DR ORDER PER B.R.R. KUMAR, A.M.: THE LEARNED CIT(EXEMPTION) HAS REJECTED THE APPLIC ATION FILED VIDE FORM NO 10A DATED 08.12.2015 SEEKING GRANT OF REGIS TRATION U/S. 12AA ON TWO GROUNDS, TO BE PRECISE, THE ASSESSEE FAILED TO MENT ION THE AREA OF OPERATION AND THE IRREVOCABILITY CLAUSE IN THE DEED OF APPLIC ANT TRUST. CONSEQUENT UPON REJECTION OF REGISTRATION APPLICATION, THE APPLICAT ION OF ASSESSEE, SEEKING APPROVAL U/S. 80G WAS ALSO REJECTED BY LD. CIT (EXE MPTION). 2. DURING THE ARGUMENTS BEFORE US, IT WAS BROUGHT T O OUR NOTICE THAT THE AREA OF OPERATION OF THE TRUST WILL BE WITHIN INDI A VIDE RESOLUTION DATED 08.08.2016. THE LD. AR HAS ALSO BROUGHT TO OUR NOTI CE THAT THE IRREVOCABILITY CLAUSE HAS BEEN DULY MENTIONED AT PARA 16 OF THE TR UST DEED, WHICH DEALS WITH DATE OF HEARING 04.06.2019 DATE OF PRONOUNCEMENT 04 .06.2019 ITA NO. 4540/DEL/2016 2 DISSOLUTION OF THE TRUST AND IN THE EVENT OF DISSOL UTION, ANY SURPLUS FUND WILL NOT BE DISTRIBUTED TO THE TRUSTEES OR ANY OTHER PER SON. THE TRUST DEED MENTIONS THAT SUCH SURPLUS SHALL BE HANDED OVER TO ANY CHARITABLE INSTITUTION HAVING SIMILAR OBJECTS. 3. THE LD. DR, ON THE OTHER HAND, ARGUED THAT THE R EGISTRATION U/S. 12AA HAS BEEN GRANTED BY THE LD. CIT (EXEMPTION) VIDE ORDER DATED 25.09.2017 AND AS FAR AS THE APPLICATION DATED 08.12.2015 IS CONCERNE D, THE ASSESSEE HAS NOT MET THE STIPULATED CONDITIONS. SINCE THE ASSESSEE HAS B ROUGHT TO OUR NOTICE REGARDING THE AREA OF OPERATION AS WELL AS IRREVOCA BILITY CLAUSE/DISSOLUTION CLAUSE BEFORE US, WE FIND IT FIT TO REMAND THE MATT ER TO THE FILE OF LD. CIT (EXEMPTION) TO ADJUDICATE THE MATTER AFRESH BY WAY A SPEAKING ORDER, KEEPING IN VIEW THE FACTS AVAILABLE ON RECORD. 4. AS A RESULT, BOTH THE APPEALS ARE ALLOWED FOR ST ATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 04/06/2019. SD/- SD/- (H.S. SIDHU) (B.R.R. KUMAR) JUDICIAL MEMBER ACCOUNTANT MEMBER DATED: 04 JUNE, 2019 *AKS* COPY OF ORDER FORWARDED TO: (1) THE APPELLANT (2) THE RESPONDENT (3) COMMISSIONER (4) CIT(A) (5) DEPARTMENTAL REPRESENTATIVE (6) GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES, NEW DELHI