Case Law Details

Case Name : M/s SRK Education & Research Charitable Trust Vs CIT (ITAT Delhi)
Appeal Number : Income Tax (Appeal) No. 2582 & 2583 of 2014
Date of Judgement/Order : 02/07/2015
Related Assessment Year :

Brief of the Case

ITAT Delhi held In the case of M/s SRK Education & Research Charitable Trust vs. CIT that it is clear in this case that the CIT refused to grant the trust registration because there was no dissolution clause in the trust deed and also the assessee had not done any charitable activity. If later deed is revised by the assessee to incorporate dissolution clause, it is required to send back the matter to CIT for fresh consideration.

Facts of the Case

The assessee was constituted vide Trust Deed dated 21.10.2013 and applied for registration u/s 12AA and 80G. The CIT rejected both the application on the ground that the assessee had not done any charitable activity and also the trust deed does not specify how the property of the trust will be dealt with in the event of the dissolution of the trust. However CIT while rejecting the application gave a liberty to the assessee to file fresh application if and when it starts & carries on charitable work.

Contention of the Assessee

The ld counsel of the assessee submitted that he moved an application under Rules 29 of the Income Tax Rules (Tribunal), 1963 and requested for admission of the supplementary trust deed dated 06.08.2014 wherein a new clause 12 has been added with regard to dissolution of trust. Further submitted that although the supplementary deed is relevant to decide the issue as to whether the registration u/s 12AA can be granted but it was not available to the CIT. He requested to set aside the issue to the file of the CIT.

Contention of the Revenue

The ld counsel of the revenue although supported the order of the CIT but did not object if the issues are to be sent back to the file of the CIT.

Held by ITAT

It is clear in this case that the supplementary Trust Deed was not available to the CIT for his consideration. So, it is appropriate to set aside both the issues i.e. the registration u/s 12AA of the Act and grant of approval u/s 80G to the file of the CIT to be adjudicated afresh in accordance with law after providing due and reasonable opportunity of being heard to the assessee.

Accordingly, both appeal of the assessee allowed for statistical purpose.

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