MATUSHRI VIMLABEN LAXMICHAND DEDHIA CHARITABLE TRUST, MUMBAI V. DIT (E), MUMBAI

ITA 4602/MUM/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 92243 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 09-04-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Next Hearing Date: 09-04-2015
• Assessment Year: 2013-2014
• Appeal Filed On: 12-06-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Assessee Lawyers: DINESH R 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.4602/MUM/2013 ASSESSMENT YEAR: 2013-14 MATUSHRI VIMLABEN LAXMICHAND DEDHIA CHARITABLE TRUST, 1501, RITE GALAXY BORIVALI, SAI DARSHAN C.H.S. LTD. SODAWALA LANE, BORIWALI (WEST) MUMBAI-400092 / VS. DIRECTOR OF INCOME TAX (EXEMPTIONS), 6 TH FLOOR, PIRAMAL CHAMBERS, PAREL, MUMBAI-400012 ( '#$% & /ASSESSEE) ( / REVENUE) P.A. NO. AADTM2069E '#$% & / ASSESSEE BY SHRI DINESH R. SHAH / REVENUE BY MS. VIDISHA KALRA CIT-DR ' '( ) & * / DATE OF HEARING 09/04/2015 ) & * / DATE OF ORDER: 09/04/2015 / O R D E R PER JOGINDER SINGH (JUDICIAL MEMBER) THE ASSESSEE IS AGGRIEVED BY THE IMPUGNED ORDER DA TED 24/05/2013 OF THE LD. DIRECTOR OF INCOME TAX (EXEMP TION), MATUSHRI VIMLABEN LAXMICHAND DEDHIA CHARITABLE TRUST 2 MUMBAI, BROADLY ON THE GROUND THAT THE LD. DIT (E) ERRED IN 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 R. SHAH, ADVANCED HIS ARGUMEN TS WHICH ARE IDENTICAL TO THE GROUND RAISED. OUR ATTE NTION 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 23/05/2012 WHICH WAS REGISTERED ON 14/09/2012 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 06/11 /2012. MATUSHRI VIMLABEN LAXMICHAND DEDHIA CHARITABLE TRUST 3 NOTICE DATED 11/02/2013 WAS SENT TO THE ASSESSEE RE QUIRING TO PRODUCE AND TO GET THE ORIGINAL DOCUMENTS FOR VERIFICATION. THE MANAGING TRUSTEE OF THE ASSESSEE TRUST WAS ASKED TO ATTEND THE OFFICE OF THE LD. DIT(E) ON 05/ 03/2013. IN RESPONSE TO WHICH, SHRI BIPIN L. DEDHIA, THE T RUSTEE, ALONGWITH AUTHORIZED REPRESENTATIVE, ATTENDED AND SUBMITTED THE DOCUMENTS FOR VERIFICATION. WE FIND THAT BROADLY, THE LD. DIT(E) WAS NOT AGREEING WITH THE D ISSOLUTION CLAUSE (CLAUSE-16) IN THE TRUST DEED. WE HAVE PERU SED THE CLAUSE AND SATISFIED WITH THE LANGUAGE EMPLOYED THE REIN. HOWEVER, WITHOUT GOING INTO MUCH DELIBERATION, WE A RE OF THE VIEW, AS SOUGHT BY THE ASSESSEE THROUGH GROUND NO.4, PROPER OPPORTUNITY SHOULD BE GIVEN TO THE ASSESSEE TO SUBSTANTIATE ITS CLAIM. THE ASSESSEE BE GIVEN OPPO RTUNITY OF BEING HEARD AND FURTHER TO FURNISH EVIDENCE, IF ANY , REQUIRED BY THE LD. DIT(E). THE APPEAL OF THE ASSESSEE IS T HUS ALLOWED FOR STATISTICAL PURPOSES 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 09/04/2015. SD/- SD/- ( D.KARUNAKARA RAO ) (JOGINDER SINGH) '# / ACCOUNTANT MEMBER $# / JUDICIAL MEMBER ' ( MUMBAI; +' DATED : 09/04/2015 F{X~{T? P.S/. '. . MATUSHRI VIMLABEN LAXMICHAND DEDHIA CHARITABLE TRUST 4 %$&'()(*& / 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