MANJULAL HEMENDRA VIRA CHARITABLE TRUST, MUMBAI V. ITO (E), MUMBAI

ITA 4584/MUM/2013

• Counselvise Citation: [2015] 121 COUNSELVISE.COM (IT) 0949 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 08-04-2015
• Assessment Year: 2013-2014
• Appeal Filed On: 11-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DINESH SHAH
• Keywords: Charitable institution; Opportunity of being heard
• Section: 12A

Judgement Text

, , , IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES B, MUMBAI , . , , BEFORE SHRI JOGINDER SINGH, JUDICIAL MEMBER, AND SHRI D. KARUNAKARA RAO, ACCOUNTANT MEMBER ITA NO.4584/MUM/2013 ASSESSMENT YEAR: 2013-14 SMT. MANJULA HEMENDRA VIRA CHARITABLE TRUST, 1201, KAILASH PALACE, UPASHRAY LANE, GHATKOPAR(E), MUMBAI-400012 / VS. DIRECTOR OF INCOME TAX (EXEMPTION), 6 TH FLOOR, PIRAMAL CHAMBERS, PAREL, MUMBAI-400012 ( '#$% & /ASSESSEE) ( / REVENUE) P.A. NO. AA LTS5206A '#$% & / ASSESSEE BY SHRI DINESH SHAH / REVENUE BY MS. VIDISHA KALRA CIT-DR ' '( ) & * / DATE OF HEARING 08/04/2015 ) & * / DATE OF ORDER: 08/04/2015 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DA TED 23/04/2013 OF THE LD. DIRECTOR OF INCOME TAX (EXEMP TION), MUMBAI, BROADLY ON THE GROUND THAT THE LD. DIT (E) ERRED IN SMT. MANJULA HEMENDRA VIRA CHARITABLE TRUST 2 INTERPRETING CLAUSE 16 OF THE TRUST DEED SPECIFICAL LY WHEN THE DISTRIBUTION OF ASSET ON DISSOLUTION OF THE TRUST I S GOVERNED BY THE PROVISION OF MAHARASHTRA PUBLIC TRUST ACT, 1 950 UNDER THE SUPERVISION OF THE COURT AND FURTHER PROP ER OPPORTUNITY OF BEING HEARD WAS NOT PROVIDED TO THE ASSESSEE TO POINT OUT THE POINTS WHICH HE INTEND TO SPECIFY FOR GRANT OF REGISTRATION U/S 12A/12AA OF THE ACT. 2. AT THE TIME OF HEARING, THE LD. COUNSEL FOR THE ASSESSEE, SHRI DINESH SHAH, ADVANCED HIS ARGUMENTS WHICH ARE IDENTICAL TO THE GROUND RAISED. OUR ATTENTION WAS INVITED TO CLAUSE-16 OF THE TRUST DEED WHICH CONTAI NS THE BINDING UP PROCESS OF THE TRUST. ON THE OTHER HAND , MS. VIDISHA KALRA, LD. CIT-DR, DEFENDED THE CONCLUSION ARRIVED AT IN THE IMPUGNED ORDER BY ASSERTING THAT A WELL R EASONED ORDER HAS BEEN FRAMED BY THE LD. DIT(E) AND THE TRU ST DEED DOES NOT CONTAIN A SPECIFIC AND CLEAR PROVISION FOR BINDING UP AND THE DISPOSAL/DISTRIBUTION OF THE PROPERTY OF THE TRUST. IT WAS SUBMITTED THAT UNBRIDLED POWERS HAVE BEEN GIVEN TO THE TRUSTIES. 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 A TR UST DEED ON 25/11/2011 WHICH WAS REGISTERED ON 03/07/2012 WI TH THE CHARITY COMMISSIONER, FILED APPLICATION FOR G RANT OF REGISTRATION U/S 12A OF THE ACT ON THE PRESCRIBED F ORM NO.10A BEFORE THE OFFICE OF THE LD. DIT(E) ON 19/10 /2012. NOTICE DATED 11/01/2013 WAS SENT TO THE ASSESSEE RE QUIRING SMT. MANJULA HEMENDRA VIRA CHARITABLE TRUST 3 TO FURNISH CERTAIN DETAILS/DOCUMENTS LIKE PAN CARDS OF SETTLER/TRUSTIES COPY OF THE BANK ACCOUNTS, NOC IN RESPECT OF OFFICE PREMISES, REGISTRATION CERTIFICATE, ISSUE D BY THE CHARITY COMMISSIONER, ACTIVITIES UNDERTAKEN BY THE ASSESSEE SUBSTANTIATED WITH THE DOCUMENTARY EVIDENC E AND THE COPIES OF ACCOUNTS, ETC. THE MANAGING TRUSTEE O F THE ASSESSEE TRUST WAS ASKED TO ATTEND THE OFFICE OF TH E LD. DIT(E) ON 08/02/2013. THE TRUSTEE, SHRI HEMENDRA R . VIRA, ATTENDED AND SUBMITTED THE DOCUMENTS FOR VERI FICATION. WE FIND THAT BROADLY, THE LD. DIT(E) WAS NOT AGREEI NG WITH THE DISSOLUTION CLAUSE (CLAUSE-16) IN THE TRUST DEE D. WE HAVE PERUSED THE CLAUSE AND SATISFIED WITH THE LANG UAGE EMPLOYED THEREIN. HOWEVER, WITHOUT GOING INTO MUCH DELIBERATION, WE ARE OF THE VIEW, AS SOUGHT BY THE ASSESSEE THROUGH GROUND NO.4, PROPER OPPORTUNITY SHOULD BE G IVEN TO THE ASSESSEE TO SUBSTANTIATE ITS CLAIM. THE ASSESS EE BE GIVEN OPPORTUNITY OF BEING HEARD AND FURTHER TO FUR NISH EVIDENCE, IF ANY, REQUIRED BY THE LD. DIT(E). THE APPEAL OF THE ASSESSEE IS THUS ALLOWED FOR STATISTICAL PURPOS ES ONLY. FINALLY, 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 08/04/2015. SD/- SD/- ( D.KARUNAKARA RAO ) (JOGINDER SINGH) '# / ACCOUNTANT MEMBER $# / JUDICIAL MEMBER ' ( MUMBAI; +' DATED : 08/04/2015 SMT. MANJULA HEMENDRA VIRA CHARITABLE TRUST 4 F{X~{T? P.S/. '. . %$&'()(*& / COPY OF THE ORDER FORWARDED TO : 1. ,-./ / THE APPELLANT 2. 01./ / THE RESPONDENT. 3. 2 2 ' 3& ( ,- ) / THE CIT, MUMBAI. P4. 2 2 ' 3& / CIT(A)- , MUMBAI 5. 56 0&'# , 2 ,-* ,# , ' ( / DR, ITAT, MUMBAI 6. $ 7( / GUARD FILE. / BY ORDER, 15-& 0& //TRUE COPY// / (DY./ASSTT. REGISTRAR) , ' ( / ITAT, MUMBAI