Indian Kanoon - Search engine for Indian Law

Income Tax Appellate Tribunal - Mumbai

Kamala Nevatia Charitable Trust, ... vs Dit (E) , Mumbai on 10 February, 2017

आयकर अपीलीय अिधकरण "ए ए" यायपीठ मुब ं ई म ।

IN THE INCOME TAX APPELLATE TRIBUNAL "A" BENCH, MUMBAI सव ी राजे , लेखा सद य एवं संजय गग , याियक सद य Before S/Shri Rajendra, A.M. and Sanjay Garg,J.M. आयकर अपील सं./ITA No.3574/Mum/2013, िनधा रण वष /Assessment Year: 2013-14 Kamla Nevatia Charitable Trust Directorate of Income tax (Exemption) 85, Pitale Prasad 6th Floor, Piramal Chambers, Parel Worli Seaface, Worli Vs. Mumbai-400 012.

Mumbai-400 030.                                  PAN: AABTK 8231 E

(अपीलाथ  /Appellant)                                             (  यथ  / Respondent)

                               Revenue by: Shri R.P. Meena
                               Assessee by: Shri N. Subramanian
                     सुनवाई क  तारीख / Date of Hearing:          18.01.2017

घोषणा क तारीख / Date of Pronouncement: 10.02.2017 आयकर अिधिनयम,1961 अिधिनयम क धारा 254(1)केके अ तग त आदे श Order u/s.254(1)of the Income-tax Act,1961(Act) लेखा सद य,राजे सद य राजे के अनुसार -Per Rajendra,AM:

Challenging the order dt.21/04/2013 of the Director of Income tax-Exemption,Mumbai (DIT- E), assessee has filed the present appeal.

2.Effective ground of appeal is about rejecting the application of registration filed by the assessee.Vide its application,dated 12.09.2012,the assessee requested the DIT-E to grant regis

-tration.By his notice,dt.10.11.2012,he directed assessee to furnish certain detail/documents including the note on activities undertaken by it.He also directed the Managing-Trustee to attend his office on 4.1.2013.

2.1.After considering the submission of the assessee,the DIT-E held that in order to be eligible for registration the assessee had to be validly constituted public charitable trust, that perusal of trust deed revealed that there was no dissolution-clause to the effect that trust was irrevocable, that the absence of dissolution clause was against the provisions of Bombay Public Trust Act,1950, that clause 13(f) of the Trust Deed declared the applicant trust to be irrevocable for all times, that the irrevocability was always qua the settler, that the said clause could not be treated a substitute for provision imposing an embargo on the trustee on distribution of trust property among themselves in case of dissolution/ winding up of the Trust,that in the trust-deed there had to be a specific mention about the dissolution of the property on winding up of the trust.The DIT-E made a reference to the provision of Bombay Public Trust Act and held that a trust was a perpetual entity,that if the trustees were unable to 3574/M/13(13-14) KamlaNC(Trust) carry out the objects of the trust it had to be dissolved or wound up,that on its winding up its corpus and property had to be transferred to another trust having similar objects with sanction of the charity commissioner, that no such clause was found to be in the trust deed, that the assessee could not be said to having constituted as a valid public charitable trust.He rejected the application filed by the assessee for registration u/s.12AA of the Act.

3.Before us,the Authorised Representative(AR)stated that issue stands covered by the orders of the Tribunal delivered in the cases of Rama Rashmi Chhaganlal Waghwala Charitable Trust (ITA/4509/Mum/2013,dtd.22-04-2015);Geeta Lalwani Foundation(ITA/3566/Mum/2013,dtd. 02.012015).The Departmental Representative(DR)supported the order of the DIT-E.

4.We have heard the rival submissions and perused the available material.We find that identical issue was dealt by the Tribunal in the case of Rama Rashmi Chhaganlal Waghwala Charitable Trust (supra)in following manner:

"3.During the course of hearing before us Authorised Representative(AR)stated that the trust deed was executed on 23.5.2011,that the trust was registered with the charity commissioner Mumbai under Bombay Public Trust Act on 25/5/2005, that it made an application for registration u/s. 12A of the Act on 4.10. 2012,that under the clause 13(f) of the deed it was clearly mentioned that the trust was irrevocable for all time,that as per clause 13(a)of the deed the trustees were empowered to take over/amalgamate with any other trust society or institution,that there was no need to provide for a separate dissolution clause in the deed, that the registration u/s. 12AA of the Act could not be disallowed on the basis of absence of dissolution clause.The AR relied upon the case of Tara Education and Charitable Trust (ITA/1247/Mum/2013 dt.18.7.2014 AY 2013-14).He also relied upon case of Geeta Lalwani Foundation(ITA/3566/Mum/2013 AY 2013-14 dt. 2.1.2015).Departmental Representative (DR)supported the order of the DIT(E).

4.We have heard the rival submissions and perused the material before us.We find that the DIT-E had denied the registration to the assessee-trust because he was of the opinion that in absence of the dissolution-clause assessee-trust was not entitled for registration.We find that in the case of Tara Education and Charitable Trust and Geeta Lalwani Foundation (supra), the Tribunal had held that absesnce of dissolution deed could not be the basis for refusing registration to a trust. In the case of Geeta Lalwani Foundation(supra), the Tribunal has held as under :-

"Regarding the dissolution clause nothing is brought on record even before us that the Bombay Public Trust Act, 1950 mandates for incorporation of mandatory clause of dissolution of any irrevocable trust. Therefore, in our opinion, the decision of the DIT(E) rejecting the registration u/s.12A was required to be reversed. Accordingly, grounds raised by the assessee are allowed."

Respectfully following the above referred two decisions of the Tribunal,we decide the effective ground of the assessee in favour of the assessee and direct the DIT(E) to grant registration to the assessee-trust.

As a result, appeal filed by the assessee stands allowed ." Considering the above,we allow the effective ground of appeal filed by the assessee.DIT-E is directed to grant registration to the assessee.

3574/M/13(13-14) KamlaNC(Trust) As a result,appeal of the assessee stands allowed. फलतः िनधा रती ारा दािखल क गई अपील मंजूर क जाती है.

Order pronounced in the open court on 10th February, 2017. आदेश क घोषणा खुले यायालय म दनांक फरवरी, 2017 को क गई ।

                        Sd/-                                          Sd/-
          (संजय गग  /Sanjay Garg)                               (राजे
  / RAJENDRA)
     
याियक सद
य / JUDICIAL MEMBER                        लेखा सद य / ACCOUNTANT MEMBER
मुंबई Mumbai; दनांक/Dated : 10.02.2017.
Jv.Sr.PS.

आदेश क ितिलिप अ ेिषत/Copy of the Order forwarded to :

1.Appellant /अपीलाथ" 2. Respondent /#$यथ"

3.The concerned CIT(A)/संब' अपीलीय आयकर आयु*, 4.The concerned CIT /संब' आयकर आयु*

5.DR " A " Bench, ITAT, Mumbai /िवभागीय #ितिनिध, खंडपीठ,आ.अ. याया.मुंबई

6.Guard File/गाड फाईल स$यािपत #ित //True Copy// आदेशानुसार/ BY ORDER, उप/सहायक पंजीकार Dy./Asst. Registrar आयकर अपीलीय अिधकरण, मुंबई /ITAT, Mumbai.