SHRI SUKH LAL RATHI CHARITABLE TRUST, JAIPUR V. COMMISSIONER OF INCOME TAX (EXEMPTION), JAIPUR

ITA 504/JPR/2018

• Counselvise Citation: [2019] 117 COUNSELVISE.COM (IT) 3686 (ITAT-JAIPUR)
• Duration Of Justice: 1 year(s) 17 day(s)
• Appeal Type: Income Tax (International Taxation) Appeal
• Pronouncement Date: 29-04-2019
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 12-04-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VARINDER MEHTA JCIT DHK
• Keywords: Charitable institution; Set aside
• Section: 12A; 12AA; 12; 11

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHES A, JAIPUR JH JES'K LH 'KEKZ] YS[KK LNL; ,OA JH FOT; IKY JKO] U;KF;D LNL; DS LE{K BEFORE: SHRI RAMESH C SHARMA, AM & SHRI VIJAY PAL RAO , JM VK;DJ VIHY LA-@ ITA NO. 504/JP/2018 FU/KZKJ.K O'KZ@ ASSESSMENT YEAR : ............. SHRI SUKH LAL RATHI CHARITABLE TRUST, RATHI DHARAMSHALA, NEAR DHULA HOUSE, BAPU BAZAAR, JAIPUR. CUKE VS. C.I.T. (EXEMPTIONS), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN/GIR NO.: AAATS 3416 N VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI P.C. PARWAL (CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI VARINDER MEHTA (JCIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 19/02/2019 MN?KKS'K.KK DH RKJH[K @ DATE OF PRONOUNCEMENT : 06/03/2019 VKNS'K@ ORDER PER: VIJAY PAL RAO, J.M. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER DATED 12/3/2018 OF LD. CIT(EXEMPTIONS), JAIPUR, WHEREBY THE APPLICATION OF THE ASSESSEE IN FORM NO. 10A FOR SEEKING REGISTRATION U /S 12A OF THE INCOME TAX ACT, 1961 (IN SHORT THE ACT) WAS REJECTED. THE ASS ESSEE HAS RAISED FOLLOWING GROUNDS: 1. THE LD. CIT(A) HAS ERRED ON FACTS AND IN LAW IN REJECTING THE APPLICATION OF ASSESSEE FOR GRANT OF REGISTRATION U /S 12AA OF INCOME TAX ACT, 1961. 2. THE ASSESSEE CRAVES TO AMEND, ALTER AND MODIFY A NY OF THE GROUNDS OF APPEAL. ITA 504/JP/2018_ SHRI SUKH LAL RATHI CHARITABLE TRUST VS. CIT(E) 2 3. NECESSARY COST BE ALLOWED TO THE ASSESSEE. 2. THE LD AR OF THE ASSESSEE HAS SUBMITTED THAT THE ASSESSEE IS A RELIGIOUS PUBLIC TRUST CONSTITUTED ON 23/10/1933 BY SHRI SUKH LAL RATHI, SURAJ MAL, CHAND MAL AND KESAR MAL. THE ASSESSEE TRU ST WAS GRANTED REGISTRATION U/S 12A OF THE ACT ON 14/10/1974. HOWEV ER, THE REGISTRATION CERTIFICATE DATED 14/10/1974 WAS GOT MISPLACED AND T HEREFORE, THE ASSESSEE REQUESTED THE DEPARTMENT TO PROVIDE A CERT IFIED COPY OF THE SAID CERTIFICATE. THE DEPARTMENT HAS EXPRESSED ITS INABIL ITY TO PROVIDE THE CERTIFIED COPY BY CITING THE REASONS THAT THE OFFIC E OF THE CIT(E) WAS NOT IN A POSITION TO PROVIDE THE SAME, AS COMMUNICATED VID E LETTER DATED 11/04/2013. THEREFORE, THE ASSESSEE WAS LEFT WITH NO O PTION BUT TO APPLY FOR REGISTRATION BY FILING THE APPLICATION DATED 19 /09/2017 BEFORE THE LD. CIT(E). THE LD AR HAS POINTED OUT THAT SINCE BEGINNIN G THE ASSESSEE WAS GRANTED BENEFIT OF SECTIONS 11 AND 12 OF THE ACT AN D EVEN FOR THE A.Y. 1977-78, THE MATTER WAS TAKEN UP TO THIS TRIBUNAL AND VIDE ORDER DATED 26/8/1981, THE TRIBUNAL HELD THAT THE ASSESSEE IS A PUBLIC RELIGIOUS TRUST ENTITLED FOR EXEMPTION U/S 11 OF THE ACT. THUS, THE ASSESSEE WAS CONSIDERED TO BE A PUBLIC RELIGIOUS TRUST AND ELIGI BLE FOR BENEFIT OF SECTIONS 11 AND 12 OF THE ACT. THE LD AR HAS POINTED OUT THAT THE LD. CIT(E) HAS REFUSED TO GRANT OF REGISTRATION U/S 12A OF THE ACT ON FOUR POINTS COMPRISING NON-FURNISHING OF THE ORIGINAL DO CUMENT OF CREATION OF ITA 504/JP/2018_ SHRI SUKH LAL RATHI CHARITABLE TRUST VS. CIT(E) 3 THE ASSESSEE TRUST, ABSENCE OF DISSOLUTION CLAUSE IN THE TRUST DOCUMENT, THE DIFFERENCE OF NAME IN FORM NO. 10A AND PAN DETA ILS OF THE ASSESSEE TRUST AND NON-SUBMITTING OF THE FINANCIAL ACCOUNTS F OR THE F.Y. 2016-17. THE LD AR HAS SUBMITTED THAT AS FAR AS THE ORIGINAL DOCUMENT IS CONCERNED, THE ASSESSEE IS HAVING THE ORIGINAL DOCUMENT AND RE ADY TO PRODUCE BEFORE THE BENCH FOR VERIFICATION, THOUGH A COPY OF THE SA ID DOCUMENT WAS ALREADY PRODUCED BEFORE THE LD. CIT(E). IT IS A REGISTERED D OCUMENT AND THEREFORE, THERE IS NO SCOPE TO DOUBT THE GENUINENESS OF THE D OCUMENT WHEN THE ASSESSEE WAS ALREADY GRANTED REGISTRATION U/S 12A OF THE ACT VIDE ORDER DATED 14/10/1974. THE LD AR HAS PRODUCED THE ORIGIN AL TRUST DEED BEFORE THE BENCH AND A TRANSLATED COPY ALONGWITH COPY OF TH E ORIGINAL DEED IN THE PAPER BOOK. AS REGARDS THE SECOND OBJECTION OF THE LD. CIT(E) REGARDING ABSENCE OF DISSOLUTION CLAUSE IN THE TRUST DEED, THE LD AR HAS SUBMITTED THAT AT THE TIME OF REGISTRATION WHAT IS REQUIRED TO BE CONSIDERED BY THE LD. CIT(E) IS THE OBJECTIVE OF THE TRUST AND GENUINENESS OF THE ACTIVITY. ONCE THE GENUINENESS OF THE ACTIVITIES ARE NOT IN DOUBT THEN MERELY BECAUSE THERE IS NO SPECIFIC DISSOLUTION CLAUSE, THE REGIST RATION CANNOT BE REFUSED. IN SUPPORT OF HIS CONTENTION, HE HAS RELIED UPON TH E DECISION OF HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. TAPAGACHHA SANGH MOTA 232 TAXMAN 715 AND SUBMITTED THAT THE HONBLE HIGH COURT HAS CATEGORICALLY HELD THAT EVEN IN ABSENCE OF ANY PROVISIONS IN THE TRUST WITH RESPECT TO THE ITA 504/JP/2018_ SHRI SUKH LAL RATHI CHARITABLE TRUST VS. CIT(E) 4 DISSOLUTION CLAUSE IF ON FACTS, THE TRUST IS FOUND T O BE GENUINE OR A GENUINENESS OF THE TRUST IS ESTABLISHED, THE TRUST IS ENTITLED FOR REGISTRATION U/S 12AA OF THE ACT SUBJECT TO FULFILL MENT OF THE OTHER CONDITIONS U/S 12AA OF THE ACT. HE HAS ALSO RELIED UPON THE DECISION OF THE COORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF SIDH A STHAN SHRI KAPALESHWAR MAHADEV SANYAS ASHRAM TRUST VS. CIT(E) 19 1 TTJ 131 AND SUBMITTED THAT THE TRIBUNAL HAS ALSO CONSIDERED AN IDENTICAL ISSUE AND HELD THAT THE REFUSAL OF REGISTRATION ON THE GROUND OF A BSENCE OF DISSOLUTION CLAUSE IS NOT JUSTIFIED AND THE LD. AR HAS SUBMITTE D THAT EVEN IF THERE IS NO SPECIAL CLAUSE IN THE TRUST DEED THERE ARE OTHER CLA USES TAKING CARE OF THE SITUATION AND PROVIDING SUFFICIENT SAFEGUARD AGAINS T THE MISUSE OF THE PROPERTY OF THE TRUST. HE HAS REFERRED VARIOUS CLAUS ES OF THE TRUST DEED AND SUBMITTED THAT AS PER CLAUSE (KHA) OF THE TRUS T DEED, THERE IS A RESTRICTION OF SALE, MORTGAGED OR DONATION OF ANY P ROPERTY OF THE TRUST BY THE TRUSTEES OR ANY OTHER PERSON. FURTHER AS PER CLA USE (THA), THE TRUSTEE CANNOT USE ANY PROPERTY OF THE TRUST FOR THEI R OWN PURPOSE OR CAN TAKE ANY ECONOMIC PROFIT FROM THE TRUST EVEN FOR THE SERVICES RENDERED. IN CASE OF CLOSURE OF THE ACTIVITY OF THE TRUST OR TRUST EES ARE NOT INTERESTED TO CARRY OUT THE ACTIVITIES OF THE TRUST, THE PROVISION S OF INDIAN TRUST ACT AS WELL AS RAJASTHAN PUBLIC TRUST ACT, 1959 TAKE CARE OF THE SITUATION. THUS, ITA 504/JP/2018_ SHRI SUKH LAL RATHI CHARITABLE TRUST VS. CIT(E) 5 THE LD AR HAS SUBMITTED THAT ABSENCE OF SPECIFIC DI SSOLUTION CLAUSE IN THE TRUST DEED CANNOT BE A GROUND FOR REJECTION OF REGIS TRATION. 2.1 THE NEXT OBJECTION OF THE LD. CIT(E) IS REGARDING DISCREPANCY IN THE NAME OF THE TRUST AS APPEARING IN THE FORM NO. 10A A ND THE PAN DETAILS, IN THIS REGARD, THE LD AR HAS SUBMITTED THAT THE AS SESSEE HAS SUBSEQUENTLY GOT THE PAN DETAILS RECTIFIED AND NOW THE NAME OF TH E ASSESSEE TRUST IN THE PAN IS IN ACCORDANCE WITH THE NAME OF THE ASSESS EE TRUST IN THE REGISTRATION CERTIFICATE ISSUED BY THE DEVSTHAN VIB HAG, JAIPUR. THE LD AR HAS POINTED OUT IN THE PAN PREFIXED SHRI WAS NOT B EFORE THE NAME OF THE TRUST WHICH IS SUBSEQUENTLY CORRECTED AND A COPY OF T HE NEW RECTIFIED PAN DETAILS HAS BEEN FILED. THEREFORE, WHEN THE ASSESSEE IS IN EXISTENCE SINCE 1933 AND ALSO GRANTED REGISTRATION IN THE YEAR 1974 THEN SUCH A MINOR MISTAKE OF NOT PREFIXING SHRI IN THE NAME OF THE ASSESSEE TRUST IN THE PAN CARD CANNOT BE TAKEN AS A SERIOUS LAPSE. AS REGARDS THE NON-PRODUCTION OF FINAL ACCOUNTS FOR THE F.Y. 2016-17, THE LD AR HAS REFERRED TO THE LETTER DATED 12/3/2018 AND SUBMITTED THAT THE ASSESSEE PRO DUCED THE FINAL ACCOUNTS, HOWEVER, ON THE SAME DATE, THE LD. CIT(E) P ASSED THE IMPUGNED ORDER AND THEREFORE, THESE ACCOUNTS WERE NOT CONSIDE RED. HENCE, THE LD AR HAS SUBMITTED THAT THE IMPUGNED ORDER IS NOT SUSTAI NABLE WHEN NONE OF THE OBJECTIONS RAISED BY THE LD. CIT(E) IS NOT RELEV ANT OR SO SIGNIFICANT TO REFUSE THE REGISTRATION. ITA 504/JP/2018_ SHRI SUKH LAL RATHI CHARITABLE TRUST VS. CIT(E) 6 3. ON THE OTHER HAND, THE LD CIT-DR HAS SUBMITTED T HAT THERE ARE DISCREPANCIES IN THE NAME APPEARING IN THE PAN IN C OMPARISON TO THE NAME OF THE ASSESSEE IN THE REGISTRATION CERTIFICAT E ISSUED BY DEVSTHAN VIBHAG, JAIPUR. FURTHER DESPITE SPECIFIC REQUEST MA DE BY THE LD. CIT(E), THE ASSESSEE FAILED TO PRODUCE ORIGINAL DEED, FINAL ACC OUNTS FOR THE F.Y. 2016- 17 AS WELL AS A PROPER CLARIFICATION REGARDING THE D ISCREPANCY IN THE NAME OF THE ASSESSEE TRUST. THEREFORE, THE ASSESSEE HAS NO T MADE THE REQUISITE DOCUMENTS AVAILABLE BEFORE THE LD. CIT(E) TO ARRIVE AT THE DECISION THAT THE OBJECTS OF THE ASSESSEE TRUST ARE CHARITABLE IN NATU RE AND THE ACTIVITY OF THE ASSESSEE TRUST ARE GENUINE. HE HAS RELIED UPON T HE IMPUGNED ORDER OF THE LD. CIT(E), 4. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AS WELL AS THE RELEVANT MATERIAL ON RECORD. THE REVENUE HAS NOT DISPUTED THA T THE ASSESSEE WAS EARLIER GRANTED REGISTRATION U/S 12A OF THE ACT IN THE YEAR 1974 AND FURTHER THE ASSESSEE WAS ALSO AVAILING THE BENEFIT OF SECTIO NS 11 AND 12 OF THE ACT. THE ASSESSEE HAS PRODUCED CERTAIN ASSESSMENT OR DERS AS WELL AS THE ORDER OF THIS TRIBUNAL FOR THE A.Y. 1977-78 WHEREIN T HE TRIBUNAL HAS HELD THAT THE ASSESSEE IS A PUBLIC RELIGIOUS TRUST AND EL IGIBLE FOR EXEMPTION U/S 11 AND 12 OF THE ACT. THEREFORE, IT IS CLEAR THAT TH E ASSESSEES STATUS WAS ACCEPTED AS A PUBLIC RELIGIOUS TRUST AS WELL AS ELIGI BLE FOR THE BENEFIT OF SECTIONS 11 AND 12 OF THE ACT. HOWEVER, SINCE THE AS SESSEE COULD NOT ITA 504/JP/2018_ SHRI SUKH LAL RATHI CHARITABLE TRUST VS. CIT(E) 7 PRODUCE THE CERTIFICATE OF REGISTRATION CLAIMED TO HAVE BEEN GRANTED ON 14/10/1974, HENCE, THE ASSESSEE APPLIED FOR FRESH R EGISTRATION VIDE APPLICATION DATED 19/9/2017. THE LD. CIT(E) VIDE LETT ER DATED 01/7/2018 HAS ASKED THE ASSESSEE TO PRODUCE VARIOUS DOCUMENTS AND THEREAFTER IT WAS OBSERVED BY THE LD. CIT(E) THAT THE ASSESSEE HAS FAILED TO SUBMIT THE ORIGINAL DOCUMENT AND ALSO TO CLARIFY THE DISCREPAN CY IN THE NAME OF THE ASSESSEE. THE RELEVANT PART OF THE LD. CIT(E)S ORDER IN PARAS 4 TO 6 IS AS UNDER: 4. UNDER SUCH POWERS VESTED IN CIT (E), THE APPLIC ANT WAS ASKED TO FILE DETAILS/ INFORMATION/DOCUMENTS ETC VIDE LETTER NO. 4527, DATED 28/29.09.2017. IN RESPONSE TO SHRI JAGDISH SOMANI, CA/AR FILED WRITTEN REPLY. HOWEVER, NO COMPLETE COMPLIANCE WAS MADE BY THE APPLICANT. KEEPING IN VIEW OF NATURE JUSTICE ONE MORE OPPORTUN ITY WAS PROVIDED VIDE THIS OFFICE LETTER NO. 8018, DATED 01/07.02.2018. T HE APPLICANT TRUST WAS REQUESTED TO PRODUCE/ FILE THE FOLLOWING:- PRODUCE ORIGINAL PAN/RC/TRUST DEED FOR VERIFICATION . FILE CLARIFICATIONS REGARDING DIFFERENCE IN NAME OF TRUST BETWEEN PAN CARD AND APPLICATION FORM 10A/RC/DEED OF THE TR UST. PRODUCE FINAL ACCOUNT FOR F. Y. 2016-17. FILE ID PROOF OF THE SETTLER/MEMBERS. ON PERUSAL OF THE MO A OF TRUST, IT IS NOTICED THAT NO DISSOLUTION CLAUSE IS PROVIDED. THEREFORE, YOU ARE REQUESTED TO EXPLAIN WHY THE APPLICATION FILED BY YOU SHOULD NOT BE REJECTED. ITA 504/JP/2018_ SHRI SUKH LAL RATHI CHARITABLE TRUST VS. CIT(E) 8 5. BUT NO SUCH DETAILS/DOCUMENTS AS REQUIRED WERE P RODUCE/FILED BY THE APPLICANT. AS SUCH IT IS A LIMITATION MATTER THEREF ORE THE MATTER IS DECIDED ON MERITS AND ON THE BASIS OF DETAILS/MATERIAL AVAI LABLE ON RECORD. ON GOING THROUGH THE MATERIAL AVAILABLE ON RECORD, FOL LOWING DISCREPANCIES WERE NOTICED:- * THE APPLICANT DID NOT SUBMIT ORIGINAL DOCUMENTS R EGARDING ESTABLISHMENT OF THE TRUST/SOCIETY AS WELL AS EVIDE NCES IN SUPPORT OF HIS CLAIM. UNDER RULE 17A OF INCOME TAX RULES, 1962 THE APPLICANT IS REQUIRED TO PRODUCE ORIGINAL DOCUMENT REGARDING EST ABLISHING OF THE TRUST/SOCIETY FOR VERIFICATION BUT THE SAME HAS NET LE DONE BY THE APPLICANT. * ON PERUSAL OF VIDHAN OF THE APPLICANT TRUST/SOCIE TY, IT IS NOTICED THAT NO DISSOLUTION CLAUSE IS PROVIDED. IT IS NOT CLEAR THAT ON DISSOLUTION HOW THE PROPERTY OF THE TRUST/SOCIETY WILL BE PROTE CTED AND USED FOR THE CHARITABLE PURPOSES. THERE HAS TO BE CHECK THAT THE BALANCE FUNDS ON DISSOLUTION DO NOT GO TO THE OFFICE BEARERS OF T HE TRUST/SOCIETY. * NAME OF TRUST AS MENTIONED ON FORM NO. 10A AND RE GISTRATION CERTIFICATE ISSUED BY THE DEVSTHAN VIBHAG, JAIPUR D IVISION, JAIPUR DID NOT MATCH WITH THE NAME MENTIONED ON PAN. * APPLICANT HAS NOT PRODUCED THE FINAL ACCOUNTS FO R FINANCIAL YEAR 2016-17 AS REQUIRED BY THIS OFFICE. IT NEEDS SPECIA L ATTENTION THAT ONE OF THE BASIC CONDITIONS STIPULATED IN SECTION 12AA IS THE GENUINENESS OF THE ACTIVITIES. IN THE PRESENT CASE THE APPLICAN T FAILED TO PROVIDE THE COMPLETE DETAILS AS REQUIRED WHICH IN TURN CAUS ES DOUBT ABOUT PROPER MAINTENANCE OF ACCOUNTS AND GENUINENESS OF T HE ACTIVITIES. THE ONUS LIES ON THE APPLICANT TO FILE COMPLETE DET AILS BUT IT FAILED TO DISCHARGE THE SAME. RULE 17A SPECIFICALLY REQUIRES SUBMISSION OF ITA 504/JP/2018_ SHRI SUKH LAL RATHI CHARITABLE TRUST VS. CIT(E) 9 ACCOUNTS. IN THE ABSENCE OF BOOKS OF ACCOUNT & VOUC HERS, ENTRIES IN THE ACCOUNTS ITSELF ARE NOT VERIFIABLE. 6. SUFFICIENT OPPORTUNITY WAS PROVIDED TO THE TRUST /SOCIETY TO PRODUCE DETAILS AND DOCUMENTS IN SUPPORT OF HIS CLAIM FOR REGISTRAT ION U/S 12AA OF THE I.T. ACT, 1961 BUT TRUST/SOCIETY HAD FAILED TO DO SO. IN THE LIGHT OF THE ABOVE FACTS, IT APPEARS THAT THE APPLICANT TRUST/SOCIETY IS NOT INTERESTED IN GETTING ITSELF REGISTERED U/S 12AA OF THE I.T. ACT. THE APPLICATION SEEKING REGISTRATION U/S 12AA IS HEREBY REJECTED AND FILED. THEREFORE, THE REGISTRATION WAS REFUSED ON FOUR REASO NS WHICH WILL DISCUSS ONE BY ONE AS UNDER: (I) THE FIRST GROUND CITED BY THE LD. CIT(E) IS NON- PRODUCTION OF THE ORIGINAL TRUST DEED, WE FIND THAT THE ASSESSEE PR ODUCED COPY OF THE TRUST DEED BEFORE THE LD. CIT(E) ALONGWITH THE CERTIFI CATE ISSUED BY DEVSTHAN VIBHAG, JAIPUR DATED 09/5/2017. AS PER THE SAID CERTIFICATE, THE ASSESSEE CHARITABLE TRUST WAS STATED TO HAVE BEEN REG ISTERED AS A PUBLIC CHARITABLE TRUST IN THE YEAR 1988. THE LD AR OF THE A SSESSEE HAS PRODUCED THE ORIGINAL TRUST DEED BEFORE US FOR VERIFICATION A ND WE FIND THAT THE ORIGINAL TRUST DEED WAS DULY REGISTERED WITH DEVSTHAN VIBHAG, JAIPUR AND COPY OF THE SAID REGISTERED DEED HAS BEEN FILED BY THE ASSESSEE. ONCE THE ASSESSEE HAS FILED THE COPY OF THE REGISTERED TRUST DEED THEN THERE WAS NO SCOPE OF DOUBT ON THE GENUINENESS OF THE TRUST DEED. THE ASSESSEE ALSO PRODUCED TRANSLATED COPY IN HINDI OF THE TRUST DEED. EVEN OTHERWISE THE LD. CIT(E) HAS ALSO DISCUSSED THE OBJECTS AND CLAUSE S OF THE TRUST DEED, ITA 504/JP/2018_ SHRI SUKH LAL RATHI CHARITABLE TRUST VS. CIT(E) 10 THEREFORE, IT WAS NOT THE CASE THAT THE LD. CIT(E) HA S NOT GONE THROUGH THE TRUST DEED BUT ONLY A TECHNICAL OBJECTION WAS RAISED BY THE LD. CIT(E) FOR NON-PRODUCTION OF ORIGINAL TRUST DEED. AFTER GOING T HROUGH THE DOCUMENTS PRODUCED BY THE ASSESSEE AS WELL AS ORIGINAL TRUST DE ED BY THE LD. AR BEFORE US, WE FIND THAT THE ASSESSEE HAS FILED A TR UE COPY OF THE TRUST DEED. THEREFORE, THE FIRST OBJECTION OF THE LD. CIT(E ) HAS BEEN SATISFIED BY THE ASSESSEE BY PRODUCING THE ORIGINAL TRUST DEED BE FORE US. (II) THE SECOND OBJECTION OF THE LD. CIT(E) IS REGAR DING ABSENCE OF DISSOLUTION CLAUSE IN THE TRUST DEED. THOUGH, THE LD. CIT(E) HAS NOT RAISED ANY DOUBT ABOUT THE CHARITABLE NATURE OF OBJECTS BU T DUE TO NON- PRODUCTION OF THE ORIGINAL DOCUMENT AND THE ABSENCE OF DISSOLUTION CLAUSE IN THE TRUST DEED, THE REGISTRATION WAS DENIED WITHOUT EVEN HOLDING THAT THE ACTIVITY OF THE ASSESSEE TRUST ARE NOT GENUINE. THE LD AR OF THE ASSESSEE HAS RELIED UPON THE DECISIONS ON THE POINT AND WE FIND THAT THE HONBLE GUJARAT HIGH COURT IN THE CASE OF CIT VS. TAP AGACHHA SANGH MOTA (SURPA) HAVE CONSIDERED THIS ISSUE IN PARAS 9 TO 12 AS UNDER: 9. HEARD THE LEARNED ADVOCATES FOR THE RESPECTIVE PA RTIES AT LENGTH. AT THE OUTSET, IT IS REQUIRED TO BE NOTED THAT THE FIRST A UTHORITY-COMMISSIONER REFUSED THE REGISTRATION CERTIFICATE UNDER SECTION 12AA OF THE ACT SOLELY ON THE GROUND THAT IN THE TRUST DEED THERE IS NO 'D ISSOLUTION CLAUSE' AND / OR ANY PROVISION IN THE EVENT OF DISSOLUTION AND / OR CLOSURE OF THE TRUST. MEANING THEREBY, THE FIRST AUTHORITY-COMMISSIONER D OUBTED THE GENUINENESS AND/OR BONA FIDE OF THE TRUST AND THERE FORE, DENIED THE REGISTRATION CERTIFICATE UNDER SECTION 12 AA OF THE ACT. THAT ON AN APPEAL, LEARNED TRIBUNAL HAS ALLOWED THE APPEALS PREFERRED BY THE ASSESSEE AND HAS DIRECTED THE COMMISSIONER TO ISSUE THE REGISTRATION CERTIFICATE UNDER ITA 504/JP/2018_ SHRI SUKH LAL RATHI CHARITABLE TRUST VS. CIT(E) 11 SECTION 12 AA OF THE ACT TO THE ASSESSEE TRUST SOLE LY RELYING UPON THE DECISION OF THE COORDINATE BENCH IN THE CASE OF CHARGAM DASHA PORWAD MAHAMANDAL ( SUPRA ). THAT THE DECISION OF THE TRIBUNAL IN THE CASE OF CHARGAM DASHA PORWAD MAHAMANDAL ( SUPRA ), HOWEVER HAS BEEN CONFIRMED BY THE DIVISION BENCH OF THIS COURT. HOWE VER, IT IS REQUIRED TO BE NOTED THAT IN THE CASE OF CHARGAM DASHA PORWAD MAHAMANDAL ( SUPRA ) IN FACT THERE WAS A DISSOLUTION CLAUSE. THEREFORE, AS SUCH ON FACTS, LEARNED TRIBUNAL HAS MATERIALLY ERRED IN RELYING UPON THE D ECISION OF THE COORDINATE BENCH IN THE CASE OF CHARGAM DASHA PORWAD MAHAMANDAL ( SUPRA ). 10. IT IS TRUE THAT WHILE CONSIDERING THE ISSUE OF REGI STRATION CERTIFICATE UNDER SECTION 12 AA OF THE ACT, THE COMMISSIONER IS REQUI RED TO BE SATISFIED HIMSELF ABOUT THE OBJECTS OF THE TRUST OR INSTITUTI ON AND THE GENUINENESS OF ITS ACTIVITIES AND AFTER SATISFYING HIMSELF ABOUT T HE OBJECTS OF THE TRUST OR INSTITUTION AND THE GENUINENESS OF ITS ACTIVITIES M AY PASS AN ORDER IN WRITING REGISTERING THE TRUST OR INSTITUTION AND GR ANT THE REGISTRATION CERTIFICATE UNDER SECTION 12 AA OF THE ACT. 11. AS OBSERVED HEREIN ABOVE, THE COMMISSIONER HAD RE FUSED THE REGISTRATION CERTIFICATE UNDER SECTION 12 AA OF THE ACT TO THE A SSESSEE TRUST SOLELY ON THE GROUND THAT TRUST DEED DO NOT PROVIDE ANY 'DISS OLUTION CLAUSE' AND / OR ANY PROVISION FOR DISTRIBUTION OF THE PROPERTIES IN THE EVENT OF CLOSURE / DISSOLUTION OF THE TRUST AND THEREBY DOUBTING THE B ONA FIDES AND GENUINENESS OF THE TRUST. HOWEVER, IT IS THE CASE O N BEHALF OF ASSESSEE TRUSTS THAT THE TRUST ARE IN EXISTENCE / PRIOR TO 1 965 AND IN FACT WAS REGULARLY FILING HIS RETURN OF INCOME SINCE, MANY Y EAR EVEN CLAIMING EXEMPTION UNDER SECTION 12 AA OF THE ACT AND SAME H AS BEEN CONSIDERED BY THE AO AND AT NO POINT OF TIME THEY HAVE DOUBTED GENUINENESS AND / OR BONA FIDE OF THE ASSESSEE TRUST. THEREFORE, IT IS T HE CASE ON BEHALF OF THE ASSESSEE TRUST THAT THEY ARE ENTITLED TO REGISTRATI ON CERTIFICATE UNDER SECTION 12 AA OF THE ACT. 12. FROM THE ORDERS PASSED BY THE COMMISSIONER REFUSI NG TO GRANT REGISTRATION CERTIFICATE UNDER SECTION 12 AA OF THE ACT AND EVEN FROM THE ORDER PASSED BY THE LEARNED TRIBUNAL, IT APPEARS THAT NONE OF TH E AUTHORITIES BELOWS HAVE CONSIDERED THE ABOVE MATERIAL AND RELEVANT ASPECT W ITH RESPECT TO THE SATISFACTION OF THE COMMISSIONER WITH RESPECT TO GE NUINENESS OF THE TRUST. IN A GIVEN CASE EVEN IN ABSENCE OF ANY PROVISION IN THE TRUST WITH RESPECT TO 'DISSOLUTION CLAUSE' IF ON FACTS THE TRUST IS FO UND TO BE GENUINE AND/OR GENUINENESS OF THE TRUST IS ESTABLISHED, THE TRUST MAY BE ENTITLED TO REGISTRATION UNDER SECTION 12 AA OF THE ACT, HOWEVE R SUBJECT TO FULFILLMENT OF CONDITIONS UNDER SECTION 12 AA OF TH E ACT I.E. WHEN THE COMMISSIONER IS SATISFIED ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST OR THE INSTITUTION. AS OBSERVED HEREIN ABOVE, BOTH THE COMMISSIONER AS WELL AS LEARNED TRIBUNAL HAVE NOT ADDRESSED THEM SELVES ON THE AFORESAID RELEVANT ASPECT, WE ARE OF THE OPINION THAT MATTERS ARE REQUIRED TO BE REMITTED BACK TO THE FILE OF THE COMMISSIONER AND R EMANDED TO THE LEARNED COMMISSIONER TO CONSIDER THE ISSUE /GRANT OF REGIST RATION CERTIFICATE UNDER ITA 504/JP/2018_ SHRI SUKH LAL RATHI CHARITABLE TRUST VS. CIT(E) 12 SECTION 12 AA OF THE ACT AFRESH IN ACCORDANCE WITH LAW AND ON MERITS AND TO CONSIDER THE GENUINENESS OF THE TRUST / INSTITUT ION / GENUINENESS OF THE ACTIVITIES OF THE TRUST AFTER GIVING AN OPPORTUNITY TO THE TRUST TO MAKE SUBMISSIONS AND / OR PRODUCE ON RECORD ANY MATERIAL IN RESPECT OF THEIR CASE THAT THERE IS NO REASON TO DOUBT THE GENUINENE SS OF THE ACTIVITIES OF THE TRUST. THEREFORE, IF THE OTHER CONDITIONS AS PROVIDED U/S 1 2AA OF THE ACT ARE SATISFIED THEN THE REGISTRATION CANNOT BE DENIED ME RELY BECAUSE OF ABSENCE OF THE DISSOLUTION CLAUSE IN THE TRUST DEED BECAUSE THERE ARE ADEQUATE SAFEGUARDS OF THE TRUST PROPERTY EVEN IN CASE OF CLO SURE OF THE ACTIVITY OF THE TRUST AS PER THE PROVISIONS OF INDIAN TRUST ACT A S WELL AS RAJASTHAN PUBLIC TRUST ACT, 1959. OTHER THAN THE DISSOLUTION C LAUSE WE FIND THAT THE TRUST DEED PROVIDES IRREVOCABLE NATURE OF THE TRUST A ND THEREFORE, IN THE EVENT OF DISSOLUTION OR CLOSURE OF THE ACTIVITY, TH E PROVISIONS OF THE INDIAN TRUST ACT AND RAJASTHAN PUBLIC TRUST ACT, 1959 WILL TA KE CARE OF THE SITUATION. THE COORDINATE BENCH OF THE TRIBUNAL IN TH E CASE OF SIDHA STHAN SHRI KAPALESHWAR MAHADEV SANYAS ASHRAM TRUST VS. CIT( E) (SUPRA) HAS ALSO CONSIDERED THIS ISSUE IN PARA 12 TO 14 AS UNDE R: 12. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUS ED THE MATERIAL AVAILABLE ON RECORD. FIRSTLY, THE TESTS WHICH ARE GERMANE AND ARE TO BE SATISFIED BEFORE THE GRANT OF REGISTRATION U/S 12AA OF THE AC T ARE THE OBJECTS OF THE TRUST WHETHER CHARITABLE OR NOT AND SECONDLY, THE G ENUINENESS OF ACTIVITIES OF THE ASSESSEE TRUST. THE ID CIT(E) HAS NOT RECORD ED ANY ADVERSE FINDING OR DISSATISFACTION ABOUT THE OBJECTS AND THE GENUIN ENESS OF ACTIVITIES OF THE ASSESSEE TRUST. HENCE, THERE IS NO DISPUTE REGA RDING THE OBJECTS AND THE GENUINENESS OF ACTIVITIES OF THE ASSESSEE TRUST . ITA 504/JP/2018_ SHRI SUKH LAL RATHI CHARITABLE TRUST VS. CIT(E) 13 13. THE LIMIT ISSUE RAISED BY THE ID. CIT(E) RELAT ES TO ABSENCE OF THE DISSOLUTION CLAUSE IN THE TRUST DEED DATED 11.02.1998. IN THIS REGARD, THE ID. AR HAS DRAWN OUR REFERENCE TO THE RELEVANT CLAUSE AT PAGE 15 OF THE TRUST DEED (REFERRED ABOVE) AND SUBMITTED THAT NEITHER THE TRU ST NOR ANY MEMBER OF THE TRUST IS EMPOWERED TO SELL ANY PART OF THE PROP ERTY OF THE TRUST. TO OUR MIND, THE EVENT OF SALE OF THE ASSETS OR THE PROPER TY OF THE TRUST COULD BE DURING THE CONTINUATION OF THE TRUST OR AT THE TIME OF ITS DISSOLUTION. THIS CLAUSE THEREFORE EFFECTIVELY RESTRICTS THE SALE OF THE PROPERTY OF THE TRUST AT ALL TIMES. BUT CAN IT BE SAID THAT THE TRUST WHICH HOLDS SUCH PROPERTY CANNOT BE DISSOLVED AT ALL TIMES TO COME AND WHAT A RE THE CONSEQUENCES THERETO. IN OUR VIEW, THE MATTER RELATING TO THE DI SSOLUTION AND THE CONSEQUENCES THEREOF HAS NOT BEEN SPELT OUT IN THE TRUST DEED. 14. NOW COMING TO THE ANOTHER CONTENTION OF THE ID AR THAT IT IS A PUBLIC CHARITABLE TRUST REGISTERED WITH DEVSTHAN VIBHAG AN D IN THE EVENT OF DISSOLUTION OF THE TRUST, ALL THE ASSETS AND PROPER TIES OF THE TRUST SHALL VEST WITH THE CHARITABLE COMMISSIONER DEVSTHAN VIBHAG, G OVERNMENT OF RAJASTHAN IN ACCORDANCE WITH THE RELEVANT PROVISION S OF THE RAJASTHAN PUBLIC TRUST ACT, 1959. HERE, WE REFER TO THE DECIS ION OF THE COORDINATE BENCH IN CASE OF SITARAM KUTIR CHARITABLE TRUST V. CIT (SUPRA) WHEREIN IT WAS HELD THAT 'IN CASE THE TRUST REGISTERED WITH TH E SUB-REGISTRAR AS A CHARITABLE TRUST AND THE TRUST BEING AN IRREVOCABLE TRUST, THE OBVIOUS POSITION SHALL BE THAT THE CHARITY COMMISSIONER SHO ULD TAKE OVER THE ASSETS ON DISSOLUTION; HENCE REJECTION OF REGISTRAT ION BY THE ID. COMMISSIONER ON THE GROUND THAT THERE WAS NO SPECIF IC CLAUSE IN THE INSTRUMENT IN REGARD TO THE TREATMENT TO BE GIVEN I N THE VENT OF DISSOLUTION WAS NOT ON A SOUND FOOTING.' WE HAVE NO HESITATION BUT TO CONCUR WITH THE VIEW TAKEN BY THE COORDINATE BENCH AND WE ACCORDINGLY, FIND FORCE IN THE ABOVE-SAID CONTENTION OF THE ID A R. AT THE SAME TIME, WE FIND THAT THERE IS NO SPECIFIC FINDINGS OF THE ID C IT(E) REGARDING WHETHER ITA 504/JP/2018_ SHRI SUKH LAL RATHI CHARITABLE TRUST VS. CIT(E) 14 THE TRUST IS A IRREVOCABLE TRUST OR NOT, AND WHETHE R THE ASSESSEE TRUST IS REGISTERED WITH THE DEVSTHAN VIBHAG AND THE CONSEQU ENCES ON ITS DISSOLUTION AS CONTENTED BY THE ID AR. WE ARE ACCOR DINGLY SETTING ASIDE THE MATTER TO FILE OF THE ID. CIT(E) TO EXAMINE THE ABOVE SAID CONTENTIONS OF THE ID AR AND WHERE THE SAME IS FOUND TO BE CORR ECT, GRANT THE NECESSARY REGISTRATION U/S 12AA OF THE ACT. THEREFORE, ABSENCE OF THE DISSOLUTION CLAUSES IN THE TRUST DEED ALONE CANNOT BE A GROUND FOR REJECTION IF THE OTHER CONDI TIONS AS PROVIDED U/S 12AA OF THE ACT ARE SATISFIED. (III) THE NEXT OBJECTION IS REGARDING THE DISCREPAN CY IN THE NAME OF THE ASSESSEE AS PER THE FORM NO. 10A AND REGISTR ATION CERTIFICATE ISSUED BY THE DEVSTHAN VIBHAG, JAIPUR WHICH DID NOT MATCH WI TH THE NAME MENTIONED IN THE PAN OF THE ASSESSEE. WE FIND THAT THE ASSESSEE HAS SUBSEQUENTLY GOT THE NAME CORRECTED IN THE PAN AND THE COPY OF THE PAN REISSUED BY THE DEPARTMENT HAS BEEN FILED BEFORE US . AS IN THE REISSUED PAN, THE NAME OF THE ASSESSEE TRUST IS NOW MATCHING WI TH THE NAME GIVEN IN THE REGISTRATION DOCUMENT, THEREFORE, THIS OBJEC TION OF THE LD. CIT(E) STAND SATISFIED. (IV) THE NEXT OBJECTION IS REGARDING NON-PRODUCTION OF FINAL ACCOUNTS FOR THE F.Y. 2016-17. THE ASSESSEE HAS BRO UGHT TO OUR NOTICE A LETTER DATED 12/3/2018 WHEREBY THE ASSESSEE PRODUCED THE COPY OF THE FINAL ACCOUNTS FOR THE F.Y. 2016-17, HOWEVER, SINCE THE IMPUGNED ORDER ITA 504/JP/2018_ SHRI SUKH LAL RATHI CHARITABLE TRUST VS. CIT(E) 15 WAS PASSED ON THE SAME DAY, THEREFORE, THE LD. CIT(E) COULD NOT CONSIDER THESE ACCOUNTS PRODUCED BY THE ASSESSEE. HENCE, WE F IND THAT NOW THE ASSESSEE HAS MADE COMPLIANCE OF THE QUERIES RAISED BY THE LD. CIT(E). SINCE THE FINAL ACCOUNTS FOR THE F.Y. 2016-17 WERE N OT EXAMINED BY THE LD. CIT(E) BEFORE PASSING THE IMPUGNED ORDER AND ALL OT HER OBJECTIONS RAISED BY THE LD. CIT(E) ARE ALSO NOW COMPLIED WITH/SATISFIED BY THE ASSESSEE, THEREFORE, THE MATTER REQUIRES TO BE RECONSIDERED I N THE LIGHT OF THE ABOVE OBSERVATION AS WELL AS THE DECISIONS RELIED UPON BY THE LD AR OF THE ASSESSEE. ACCORDINGLY, WE SET ASIDE THE IMPUGNED ORD ER OF THE LD. CIT(E) AND REMIT THE MATTER BACK TO THE RECORD OF THE LD. CIT(E) FOR DECIDING THE APPLICATION FOR REGISTRATION U/S 12AA OF THE ACT IN THE LIGHT OF THE ABOVE OBSERVATION AS WELL AS AFTER CONSIDERING THE FINAL A CCOUNTS FOR THE F.Y. 2016-17. NEEDLESS TO SAY THE ASSESSEE BE GIVEN REAS ONABLE OPPORTUNITY OF HEARING. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES ONLY. ORDER PRONOUNCED IN THE OPEN COURT ON 06 TH MARCH, 2019. SD/- SD/- JES'K LH 'KEKZ FOT; IKY JKO (RAMESH C SHARMA) (VIJAY PAL RAO) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER TK;IQJ@ JAIPUR FNUKAD@ DATED:- 06 TH MARCH, 2019 ITA 504/JP/2018_ SHRI SUKH LAL RATHI CHARITABLE TRUST VS. CIT(E) 16 *RANJAN VKNS'K DH IZFRFYFI VXZSFKR @ COPY OF THE ORDER FORWARDED TO: 1. VIHYKFKHZ @ THE APPELLANT- SHRI SUKH LAL RATHI CHARITABLE TRUST, JAIPUR. 2. IZR;FKHZ @ THE RESPONDENT- THE CIT(E), JAIPUR. 3. VK;DJ VK;QDR @ CIT 4. VK;DJ VK;QDRVIHY @ THE CIT(A) 5. FOHKKXH; IZFRFUF/K] VK;DJ VIHYH; VF/KDJ.K] T;IQJ @ DR, ITAT, JAIPUR 6. XKMZ QKBZY @ GUARD FILE (ITA NO. 504/JP/2018) VKNS'KKUQLKJ @ BY ORDER, LGK;D IATHDKJ @ ASST. REGISTRAR