Vikram Vyas Trust, Ahmedabad V. The DIT(E), Ahmedabad

ITA 915/AHD/2013

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 85715 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 10 month(s) 23 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-02-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 03-04-2013
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: O P VAISHNAV
• Assessee Lawyers: S N DIVETIA
• Keywords: Principle of natural justice
• Section: 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD B BENCH BEFORE: SHRI SHAILENDRA KR. YADAV, JUDICIAL MEMBER AND SHRI ANIL CHATURVEDI, ACCOUNTAN T MEMBER VIKRAM VYAS TRUST, C/O WADIA CHANDY & CO, 1 ST FLOOR, CHANDAN HOUSE, LAW GARDEN, AHMEDABAD-380006 PAN: AABTV 5547 Q (APPELLANT) VS THE DIT(E) AHMEDABAD (RESPONDENT) ASSESSEE BY: SHRI S.N. DIVETIA, A.R. REVENUE BY: SHRI O.P. VAISHNAV, CIT-D.R . DATE OF HEARING : 24-02-2015 DATE OF PRONOUNCEMENT : 26-02- 2015 / ORDER PER : ANIL CHATURVEDI, ACCOUNTANT MEMBER:- THIS IS THE ASSESSEES APPEAL AGAINST THE ORDER OF LD. DIT(E), AHMEDABAD DATED 23-01-2013. 2. THE FACTS AS CULLED OUT FROM THE MATERIAL ON RE CORD ARE AS UNDER. 3. ASSESSEE-TRUST HAD MADE AN APPLICATION FOR REGIS TRATION U/S. 12AA OF THE ACT ON 27-07-2012. THE SAID APPLICATION WAS RE JECTED BY DIT(E) VIDE ITA NO. 915/AHD/2013 ASSESSMENT YEAR: N.A. I.T.A NO. 915/AHD/2013 A.Y. BLOCK PERIOD PAGE NO VIKRAM VYAS TRUST VS. DIT(E) 2 HIS ORDER DATED 23-01-2013 MAINLY FOR THE REASON TH AT IN THE TRUST-DEED OF THE ASSESSEE-TRUST, THERE WAS NO CLAUSE WITH RESPEC T TO DISSOLUTION OF THE TRUST. AGGRIEVED BY THE ORDER OF DIT(E), THE ASSES SEE IS NOW IN APPEAL BEFORE US AND HAS RAISED THE FOLLOWING GROUNDS:- 1.1 THE ORDER PASSED U/S.12AA ON 23.1.2013 BY DI T (EXEM), ABAD REJECTING THE APPLICATION FOR REGISTRATION OF THE APPELLANT TRUST IS WHOLLY ILLEGAL, UNLAWFUL AND AGAINST THE PRINCIPLES OF NATURAL JUSTICE. 1.2 THE LD. DIT(E) HAS GRIEVOUSLY ERRED IN LAW AN D OR ON FACTS IN NOT ALLOWING ANY OPPORTUNITY TO THE APPELLANT BEFOR E REJECTING THE APPLICATION FOR REGISTRATION U/S.12AA ON THE GROUND OF ABSENCE OF ANY CLAUSE IN THE TRUST DEED RELATING TO DISSOLUTION OR TRANSFER OF ASSETS TO ANOTHER TRUST. 2.1 THE DIT(E) HAS GRIEVOUSLY ERRED IN LAW AND ON FACTS IN REJECTING THE APPLICATION FOR REGISTRATION U/S.12AA OF THE AP PELLANT TRUST. THE REJECTION OF THE SAID APPLICATION ON THE GROUNDS OF ABSENCE OF ANY CLAUSE IN THE TRUST DEED RELATING TO DISSOLUTION OR TRANSFER OF ASSETS IS CONTRARY TO LAW AND IN EXCESS OF THE POWERS VEST ED IN DIT(E) U/S.12AA. 2.2 THAT IN THE FACTS AND CIRCUMSTANCES OF THE CA SE AS WELL AS IN LAW, THE LD.DLT(E) OUGHT NOT TO HAVE REJECTED THE A PPLICATION FOR REGISTRATION OF THE APPELLANT TRUST U/S.12AA. 4. BEFORE US, LD. AR SUBMITTED THAT THOUGH VARIOUS GROUNDS HAVE BEEN RAISED BUT THE ONLY ISSUE IS WITH RESPECT TO REJECT ION OF APPLICATION SEEKING REGISTRATION U/S. 12AA OF THE ACT. 5. BEFORE US, LD. AR SUBMITTED THAT THE ONLY REASON FOR DENYING THE REGISTRATION U/S. 12AA WAS THE ABSENCE OF DISSOLUTI ON CLAUSE IN THE TRUST DEED. HE FURTHER SUBMITTED THAT THE REASONING GIVEN BY LD. DIT(E) FOR REJECTION OF REGISTRATION U/S. 12AA OF THE ACT WAS NOT AS PER LAW AND THE SCOPE OF INQUIRY CONTEMPLATED U/S. 12AA IS LIMITED TO THE EXTENT OF COMMISSIONER GETTING HIMSELF SATISFIED ABOUT THE OB JECT OF THE TRUST AND THE GENUINENESS OF ITS ACTIVITIES. HE FURTHER SUBMITTE D THAT THE ISSUE IS NOW I.T.A NO. 915/AHD/2013 A.Y. BLOCK PERIOD PAGE NO VIKRAM VYAS TRUST VS. DIT(E) 3 COVERED IN FAVOUR OF THE ASSESSEE BY VARIOUS DECISI ONS AND MORE PARTICULARLY BY THE DECISION OF AHMEDABAD TRIBUNAL IN THE CASE OF SHREE VANCHHARA TIRTHADHIPATI CHINTAMANI PARSWAPRWABHU TR UST (ITA NO. 610/AHD/2013 ORDER DATED 11-10-2013) AND IN THE CAS E OF PANNA PARIKH FOUNDATION OF ITA NO. 339/AHD/2013 ORDER DATED 19-0 4-2013. HE THEREFORE SUBMITTED THAT DIT(E) BE DIRECTED TO GRANT REGISTRA TION TO THE ASSESSEE. LD. DR ON THE OTHER HAND SUPPORTED THE ORDER OF DIT (E) AND FURTHER POINTED OUT THAT THERE IS NO FINDING BY DIT(E) ABOU T THE ACTIVITIES OF THE TRUST. 5. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD. WE FIND THAT THE APPLICATION FOR REGISTRATION U/S. 12AA BY THE ASSESSEE WAS REJECTED BY DIT(E) MAINLY FOR T HE REASON THAT THERE WAS NO DISSOLUTION CLAUSE IN THE TRUST DEED. WE FU RTHER FIND THAT IN THE ORDER OF DIT(E) THERE IS NO FINDING ABOUT HIS SATIS FACTION WITH RESPECT TO THE OBJECTS OF THE TRUST AND THE GENUINENESS OF ITS ACT IVITIES. BEFORE US ALSO DURING THE COURSE OF HEARING, THE BENCH INQUIRED FR OM THE LD. AR ABOUT THE NATURE OF ACTIVITIES UNDERTAKEN BY THE ASSESSEE TO WHICH HE WAS UNABLE TO GIVE ANY SATISFACTORY REPLY. WE FURTHER FIND THAT THE CO-ORDINATE BENCH OF THE TRIBUNAL IN THE CASE OF SHREE VANCHHARA TIRTHAD HIPATI TRUST (SUPRA) AND AFTER RELYING ON THE DECISION OF DELHI TRIBUNAL IN THE CASE OF SHRI SAI SOMARPAN TRUST DECIDED THE ISSUE IN FAVOUR OF ASSES SEE. IN VIEW OF THESE FACTS, WE ARE OF THE VIEW THAT THE MATTER NEEDS TO BE RE-EXAMINED AT THE END OF DIT(E). WE THEREFORE SET ASIDE THE ISSUE TO THE FILE OF DIT(E) TO DECIDE THE ISSUE AFRESH IN ACCORDANCE WITH LAW AND IN THE LIGHT OF DISCUSSIONS HEREINABOVE AND AFTER CONSIDERING THE D ECISIONS RELIED UPON BY THE ASSESSEE. ASSESSEE IS ALSO DIRECTED TO CO-O PERATE BY PROMPTLY FURNISHING ALL THE REQUIRED DETAILS CALLED FOR BY D IT(E). I.T.A NO. 915/AHD/2013 A.Y. BLOCK PERIOD PAGE NO VIKRAM VYAS TRUST VS. DIT(E) 4 6. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE AT CAPTION PAGE SD/- SD/- (SHAILENDRA KR. YADAV) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER AHMEDABAD : DATED 26/02/2015 AK / COPY OF ORDER FORWARDED TO:- 1. ASSESSEE 2. REVENUE 3. CONCERNED CIT 4. CIT (A) 5. DR, ITAT, AHMEDABAD 6. GUARD FILE. BY ORDER/ , / ,