Income Tax Appellate Tribunal - Mumbai
Hari Dhan Trust, Mumbai vs Assessee on 11 March, 2015
आयकर अपील य अ धकरण, मंब ु ई यायपीठ, H , मंब ु ई।
IN THE INCOME TAX APPELLATE TRIBUNAL MUMBAI BENCHES "H", MUMBAI ी जोिग दर सह, याियक सद य एवं ी संजय अरोड़ा, लेखा सद य, के सम Before Shri Joginder Singh, Judicial Member, and Shri Sanjay Arora, Accountant Member ITA NO.2285/Mum/2013 Assessment Year: 2013-14 Hari Dhan Trust Director of Income 4, Vakharia House, Tax(Exemp.) N.S. Road No.9 बनाम/ 616, 6th floor J.V.P.D.Scheme Piramal Chambers Mumbai-400 049. Vs. Parel, Mumbai-400012.
(अपीलाथ /Appellant) ( यथ /Respondent) P.A. No.AABTH 0749 Q नधा रती क ओर से / Assessee by): Shri Dinesh Sanghvi-Trustee राज व क ओर से / Revenue by: Ms. Neena Singh Pandey-CIT DR सन ु वाई क तार ख /Date of Hearing : 11/03/2015 घोषणा क तार ख / 11/03/2015 Date of Pronouncement :
आदे श / O R D E R PER JOGINDER SINGH (Judicial Member):
The assessee is aggrieved by the impugned order dated 25.2.2013 of the ld. DIT(E), Mumbai denying registration u/s. 12A of the Income tax Act, 1961(hereinafter the Act) to the assessee Trust.2
ITA NO.7690/Mum/2011
2. During hearing of this appeal Shri Dinesh Sanghvi, Trustee of the assessee trust, appeared in person and advanced his argument which is identical to the ground raised. On the other hand, Ms. Neena Singh Pandey, Ld. CIT-DR defended the conclusion arrived at in the impugned order by submitting that there was no dissolution clause in the trust deed and the trustees are having unbridled powers for distributing the property of the trust in case if the trust is dissolved.
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 an indenture of a trust deed dated 27.12.2011 and was duly registered with the Charity Commissioner. The assessee applied for grant of registration u/s. 12A of the Act on 30.8.2012 along with necessary documents /details. The ld. DIT(E) examined the application of the assessee and found that the trust deed nowhere prohibits the trustees to distribute the property of the trust in case of winding up/dissolution of the trust. We find merit in this observation of the ld. DIT(E) in denying registration to the assessee . However, it is nowhere disputed the charitable character of the assessee trust. We have also perused the trust deed wherein it was established for education, relief to the poor, medical relief and advancement of any other charitable activities of general public utility not involving or carrying out any activity purely for the sake of earning profit. At the same time the dissolution clause No.13 is loosely worded, providing discretionary powers to the trustees. Therefore, the assessee trust is directed to suitably amend the dissolution clause within the framework of the Act and also any other clause, if any, found to be contrary to the 3 ITA NO.7690/Mum/2011 objects of the assessee trust and the approach the office of the ld. DIT(E) for his satisfaction and necessary action. It is clarified that if the necessary amendment is not made by the assessee trust, the ld. DIT(E) is free to decide in accordance with law. Thus, 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 11/03/2015.
आदे श क घोषणा दनांकः 11 /03/2015 को क गई ।
(Sanjay Arora) (Joginder Singh) लेखा सद य / ACCOUNTANT MEMBER या यक सद य / JUDICIAL MEMBER मंब
ु ई Mumbai; दनांक Dated : 11/03/2015 JV, Sr. P.S./ व. न.स.
आदे श क त ल प अ े षत/Copy of the Order forwarded to :
1. अपीलाथ / The Appellant
2. यथ / The Respondent.
3. आयकर आयु त(अपील) / The CIT, Mumbai.
4. आयकर आयु त / CIT(A)- , Mumbai
5. वभागीय त न ध, आयकर अपील य अ धकरण, मब ुं ई / DR, ITAT, Mumbai
6. गाड फाईल / Guard file.
आदे शानस ु ार/ BY ORDER, स या पत त //True Copy// उप/सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपील य अ धकरण, मब ंु ई / ITAT, Mumbai.