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'Whether on the facts and circumstances of the case and in law, the CIT(A) was justified in treating it as revocable trust.' Submissions of the assessee: -

That the assessee was a revocable trust:

1. It is submitted that as per provisions of Sec. 61 of Income tax Act, any income arising to any person in from revocable transfer of asset shall be chargeable to income tax as the income of the transferor and not as the income of the transferee.

2. The assessee trust had received some amounts under REVOCABLE TRANSFER OF ASSETS (within the meaning of Sec. 63 of income tax Act) from the contributors/beneficiaries. This constitutes the Trust Fund of the assessee. The share of each beneficiary/contributor is determinate. The assessee is holding this amount for the benefit of the contributors/beneficiaries only.

16. Regarding Ground No. 2, whether the assessee trust is revocable.

Considering the facts and circumstances of the case, the ld. CIT(A) has rightly observed that the assessee trust is a revocable trust stood in section 63 of the I.T. Act. The ld. AR for the assessee submitted that the assessee filed number of documentary evidence before the ld. CIT(A) and before us it is to be noted that when the transactions has been expired then it may be restored and it is clear from the trust deed which is chartered documents. Going through the document indenture of trust where it is very crucial to mention that the trust has defined period and in paper book at page no. 30 that the term and termination of the trust which is reproduced as under:-

4.3 Investments in the name of the Trustee: All investment of the trust or its schemes shall be registered in the name of the trustee or the trust or the scheme, if permissible, as soon as reasonably practicable. The voting powers under the investments shall vest with the trustee."

On perusing this memorandum of appreciation which is already been discussed from this documents, it is noted the trust was not created for limited time where the trustee is revocable and the funds were to be return back on the termination of the beneficiary. The ld. AR for the assessee further produced a few documents which show that the amount has been return to the assessee and where the trust is revocable the agreement. Going through the term of fund RVCF Trust investment period and commitment period it is very clear that funds were to be returned back on the termination of the contribution and the trust was not created for certain time so the trust is a revocable trust. The ld. AR further produced the few example whether the amount was received by the corporation is income from SME tech fund-RVCF-II where the owner are national bank example produce before us in Paper book at page No. 112 to 117. The ld. CIT(A) has discussed the Board circular which is related in section 166 and explain that the assessee trust is a revocable trust and in para 2 of the CBDT Circular explain that 'option once' that it will not be opened to the Income-tax Officer to assess the same income for that assessment year in the hands of the other person i.e. the beneficiary or the trustee. The ld. CIT(A) has rightly taken view that the assessee trust is received some amounts under revocable transfer of asset where the AO failed to note that no income is charitable to tax in the hands of the assessee but it is charitable to tax in the hands of the beneficiaries and any income arising to any other in such revocable transfer of AOP which charitable to income tax as the income of the transferor and not in the income transferee where the income received by the assessee trust was charitable to tax in the hands of contributors/beneficiaries and not in the hands of the assessee. The AO contentions that the investment was available for free use by the assessee is not correct. The ld. AR for the assessee pointed that the interest of the other beneficiary is the evident of default clause where the circular is to be RVCF Trust considered. In support, reliance was placed in the following decision in the case of CIT vs. SAE Head Office Monthly Paid Employees Welfare Trust (2004) 141 taxman 364 ( Delhi Trib.). It is a clear definition that the income arising to any person by virtue of revocable transfer of assets shall be chargeable to tax as income of the transferor will apply to the facts and circumstances of the present case and therefore, the assessment in the hands of the transferee/ representative assessee was not justified. In this regard, our reference was drawn to the decision of the case of DCIT vs. India Advantage Fund-VII reported in (2014) 50 taxmann.com 350 (Bangalore- Trib.) wherein the Bench has held in para 68 & 73 which are reproduced as under:-

Taking into consideration of orders of lower authorities documentary evidence assessee trust is revocable trust. Hence, ground No. 2 of the Revenue appeal is dismissed and uphold the order of the ld. CIT(A) that the RVCF Trust is revocable trust. The trust was created for a definite time and the trust was RVCF Trust created for the last end of the final scheme of the trust. Taking into consideration of clause-4, the trust fund of the indenture of trust the assessee RVCF is just holding the fund of the beneficiaries and contributors of the private placement memorandum. Taking into consideration the memorandum in paper book at page- 35 and 44 which clearly explain the term of the fund and investment period and commitment period from the term of the fund shall be 8 years from the date of the first closing. Term may be extended for two additional lone year period upon the recommendation of the investment manager. The fund may be return back to the beneficiaries and taking into consideration of the contribution agreement where the assessee has been entered the agreement of RVCF trustee company limited. It is an example given by the ld. AR for the assessee where the trust is revocable trust and taking into consideration the contribution agreement in paper book at page 71 to 77 where in 2.4 the return of contribution clearly explains the dissolution of the funds where the contributor shall be entitled to return of its capital contribution upon the distributions or dissolution of the fund as per clause -9. The trust was created in the limited period of time and perpetuated the trust and the fund was hold by the assessee or the fund of contributors and beneficiaries which is revocable trust. Going through the number of documentary evidence produced before us it can thus been noted that the beneficiaries each from money to the assessee and his agreement were entered into between the RVCF Trust assessee and each beneficiaries there is not enter see arrangement between one contributor/ beneficiaries and the other contributors/beneficiaries as each of them entered into separate contribution arrangement with the assessee. The AO's findings are baseless and unjustified that the investment was available for free use by the assessee is not correct and the AO's action in the impugned assessment order for the year cannot be sustained in this regard and we uphold the order passed by the ld. CIT(A) where the assessee trust is revocable trust the assessee holding this amount for the benefit of the contributors and beneficiaries only the each distribution to the fund has made the contribution on the condition that the initial contribution along with any income or gain arising on the investment made from his contribution would be return to the contributor upon the sale of investment and the contribution is nothing to a revocable transfer has defined in section 63 of the Act and in the entire asset will be contributed to the contributors and dissolution of the assessee trust after expiry.