Shree Bhakti Vinay Foundation Trust, Ahmedabad v. The DIT(Exemp.), Ahmedabad

ITA 566/AHD/2013 | misc
Pronouncement Date: 31-05-2010 | Result: Allowed

Appeal Details

RSA Number 56620514 RSA 2013
Assessee PAN AALTS1644R
Bench Ahmedabad
Appeal Number ITA 566/AHD/2013
Appellant Shree Bhakti Vinay Foundation Trust, Ahmedabad
Respondent The DIT(Exemp.), Ahmedabad
Appeal Type Income Tax Appeal
Pronouncement Date 31-05-2010
Appeal Filed By Assessee
Order Result Allowed
Bench Allotted C
Tribunal Order Date 31-05-2010
Date Of Final Hearing 29-05-2013
Next Hearing Date 29-05-2013
Assessment Year misc
Appeal Filed On 04-03-2013
Judgment Text
C IN THE INCOME TAX APPELLATE TRIBUNAL AT AHMEDABAD C BENCH . .. . . .. .'#$% '#$% '#$% '#$% & & & & ' ' ' ' BEFORE S/SHRI MUKUL KR. SHRAWAT JUDICIAL MEMBER AN D A.K GARODIA ACCOUNTANT MEMBER) ITA NO.566/AHD/2013 SHREE BHAKTI VINAY FOUNDATION TRUST 5 TRISHLA APARTMENT 12 ANANDNAGAR SOCIETY BHATTA PALDI AHMEDABAD 380 007. PAN : AALTS 1644 R ( /VS. DIT (EXEMPTION) AHMEDABAD. ( (( (*+ *+ *+ *+ / APPELLANT) ( (( ( -*+ -*+ -*+ -*+ / RESPONDENT) ( . / 0 / ASSESSEE BY : SHRI HARDIK VORA / 0 / REVENUE BY : SHRI SUNIL KUMAR DR (2 / 3&/ DATE OF HEARING : 29 TH MAY 2013 4#5 / 3&/ DATE OF PRONOUNCEMENT : 31/05/2013 6 / O R D E R PER MUKUL KR. SHRAWAT JUDICIAL MEMBER : THIS IS AN APPEAL FILED BY THE ASSESSEE ARISING FROM AN ORDER OF THE DIRECTOR OF IT (EXEMPTIONS) AHMEDABAD DATED 31.1.2013 PASS ED UNDER SECTION 12AA OF THE I.T.ACT. THE ASSESSEE IS AGGRI EVED BY THE SAID ORDER BECAUSE THE REGISTRATION UNDER SECTION 12AA O F THE ACT WAS REJECTED. ITA NO.566/AHD/2013 -2- 2. FROM THE SAID OF THE APPELLANT THE LEARNED AR M R.HARDIK VORA APPEARED AND INFORMED THAT THE TRUST DEED OBJECTS OF THE TRUST AS WELL AS THE CHARITABLE ACTIVITIES CARRIED OUT BY THE TRU STS WERE DULY FURNISHED TO THE DIRECTOR OF INCOME TAX (EXEMPTIONS ) HOWEVER HE HAS DENIED THE CLAIM OF REGISTRATION WRONGLY ON THE GROUND THAT THE DISSOLUTION CLAUSE IS NOT PROPER IN THE TRUST DEED. THE LEARNED AR HAS PLEADED THAT ALMOST ON IDENTICAL SITUATION A BEN CH OF THE ITAT AHMEDABAD IN THE CASE OF SHREE CHARGAM DASHA PORWAR D MAHAMANDAL VS. DIT (EXEMPTIONS) VIDE ITA NO.337 AN D 338/AHD/2013 ORDER DATED 8.5.2013 HAS HELD AS UNDER : 3. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS CAREFU LLY AND PERUSED THE ORDERS OF THE DIT(EXEMPTIONS) AS WELL A S THE DECISION OF THE ITAT DELHI IN THE CASE OF SHRI SAI SAMARPAN TRUST CO.(SUPRA). WE FIND THAT THE ONLY REASON ADVA NCED FOR REFUSING THE REGISTRATION U/S.12AA AND 80G(5) OF TH E ACT BY THE DIT(EXEMPTIONS) IS THAT THERE IS NO DISSOLUTION CLA USE IN THE TRUST-DEED AND TRUST DOES NOT HAVE ANY CLAUSE THAT THE TRUST WILL NOT BE DISSOLVED AND IT IS A PERPETUAL TRUST. THIS ISSUE OF REFUSING REGISTRATION IN THE ABSENCE OF DISSOLUTION CLAUSE IN THE TRUST-DEED IS COVERED IN FAVOUR OF THE ASSESSEE WIT H THE DECISION OF CO-ORDINATE BENCH OF DELHI TRIBUNAL IN THE CASE OF SHRI SAI SAMARPAN TRUST CO.(SUPRA) WHEREIN IN PARAGRAPH NO. 8 HELD THAT WHEN THE ASSESSEE- TRUST IS REGISTERED WITH TH E SUB-REGISTRAR AS A CHARITABLE TRUST IN THE EVENT OF FAILURE OF T HE TRUST THE NET ASSETS/INCOME WOULD OBVIOUSLY BE TAKEN OVER BY THE CHARITY COMMISSIONER AND THE REJECTION OF REGISTRATION ON T HIS GROUND WAS HELD NOT ON A SOUND FOOTING AND THE ORDERS OF T HE DIT(EXEMPTIONS) WERE REVERSED. WE FIND THAT THE CAS E OF THE ASSESSEE IS ON MORE SOUND FOOTING SINCE IT HAS ALRE ADY APPLIED TO THE CHARITY COMMISSIONER FOR AMENDMENT OF THE TR UST-DEED VIDE APPLICATION SUBMITTED ON 26/02/2013 WHEREBY I NSERTING THE DISSOLUTION CLAUSE PROVIDING THAT THE TRUST SHA LL BE IRREVOCABLE AND IN THE MOST UNLIKELY SITUATION IF TRUST PRACTICALLY STOPS FUNCTIONING IT CAN ONLY BE MERGED/AMALGAMATED WITH OTHER ONE OR MORE PUBLIC CH ARITABLE TRUSTS OR BODIES HAVING SIMILAR OBJECTS SUBJECT TO THE APPROVAL OF THE OFFICE OF THE PUBLIC CHARITY COMMISSIONER E TC. NO OTHER ITA NO.566/AHD/2013 -3- MATERIAL HAS BEEN PRODUCED ON BEHALF OF THE REVENUE BEFORE US TO SUGGEST THAT THE AIMS AND OBJECTS OF THE TRUST A RE NOT CHARITABLE IN NATURE. IN THESE FACTS OF THE CASE WE HOLD THAT THERE IS NO JUSTIFICATION FOR REFUSING THE REGISTRA TION U/S.12AA AND 80G(5) OF THE ACT TO THE ASSESSEE WHICH IS ACC ORDINGLY ALLOWED TO THE ASSESSEE AND THE ORDERS OF THE DIT(E XEMPTIONS) IN BOTH THE CASES ARE REVERSED AND WE DIRECT THE DIT(EXEMPTIONS) TO GRANT THE REGISTRATION U/S.12AA & 80G(5) OF THE ACT TO THE ASSESSEE IN BOTH THE CASES AND TH E GROUND(S) RAISED IN BOTH THE APPEALS ARE HEREBY ALLOWED. FROM THE SIDE OF THE REVENUE THE LEARNED DR HAS SU PPORTED THE VIEW TAKEN BY THE DIT(EXEMPTIONS) AND ARGUED THAT IN THE CASE OF DISSOLUTION THE ASSETS MUST NOT BE TRANSFERRED FOR ANY OTHER PURPOSES BUT FOR THE OBJECTS OF THE CHARITY AND BECAUSE THI S CLAUSE WAS NOT PROVIDED IN THE TRUST DEED THEREFORE THE TRUST WA S NOT A GENUINE TRUST AND HENCE REGISTRATION WAS RIGHTLY DENIED. 3. HAVING HEARD THE SUBMISSIONS OF THE BOTH THE SID ES WE ARE OF THE CONSIDERED OPINION THAT THE ISSUE OF DISSOLUTI ON CLAUSE NOW STOOD COVERED BY THE AFORESAID DECISION OF THE ITAT AHMEDABAD HENCE IN THE INTEREST OF JUSTICE WE DEEM IT PROPE R TO RESTORE THIS ISSUE BACK TO THE DIRECTOR OF IT (EXEMPTIONS) WITH DIRECT ION TO RE-EXAMINE THE CLAUSES OF THE TRUST DEED AND IF THE OBJECTS A ND THE ACTIVITIES ARE AS PER THE LAW PRESCRIBED THEN GRANT REGISTRATION TO THE TRUST. DURING THE COURSE OF HEARING THE LEARNED AR SHRI HARDIK VORA HAS PLEADED THAT IN THE ABSENCE OF REGISTRATION CERTIFICATE THE ACTI VITIES OF THE TRUST ARE BEING HAMPERED. CONSIDERING THIS ASPECT WE HEREBY DIRECT THE ASSESSEE TO APPEAR BEFORE THE LEARNED DIT(EXEMPTION S) WITHIN 15 DAYS ON RECEIPT OF THIS ORDER OF THE TRIBUNAL AND PLACE ALL NECESSARY INFORMATION SO THAT THE ISSUE OF GRANT OF REGISTRAT ION CAN BE DECIDED AT AN EARLY DATE. SIMULTANEOUSLY WE ALSO EXPECT THAT THE LEARNED ITA NO.566/AHD/2013 -4- DIT(EXEMPTIONS) SHALL DECIDE THE ISSUE FOR GRANT OF REGISTRATION AS EARLY AS POSSIBLE AND FOR THAT PURPOSE HE IS AT L IBERTY TO TAKE ALL NECESSARY ACTION AS PRESCRIBED UNDER THE LAW. WITH THESE REMARKS AND DIRECTIONS THE GROUNDS RAISED BY THE ASSESSEE IN T HE APPEAL MAY BE TREATED AS ALLOWED FOR STATISTICAL PURPOSE. 4. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN OPEN COURT ON THE DATE MENTIONE D HEREINABOVE. SD/- SD/- ( . .. . . .. .'#$% '#$% '#$% '#$% /A.K. GARODIA) & & & & /ACCOUNTANT MEMBER ( /MUKUL KR. SHRAWAT) /JUDICIAL MEMBER C OPY OF THE ORDER FORWARDED TO: 1) : APPELLANT 2) : RESPONDENT 3) : CIT(A) 4) : CIT CONCERNED 5) : DR ITAT. BY ORDER DR/AR ITAT AHMEDABAD