Breach Candy Swimming Bath Trust, ... vs Assessee

सव ौी ड . मुमोहन, उपा य! एवं नरे ि कुमार %ब&लै(या, लेखा सदःय के सम!

BEFORE SHRI D. MANMOHAN, VICE PRESIDENT AND

SHRI N.K. BILLAIYA, ACCOUNTANT MEMBER

आयकर अपील सं./I.T.A. No. 6163/Mum/2013 िनधा रण वष / Assessment Year :2010-11 (िनधा

Breach Candy Swimming बनाम The ITO (E)-1(1), बनाम/ Bath Trust, Piramal Chambers, Parel, Vs. 66, Bhulabhai Desai Road, Mumbai-400 012 Mumbai-400 026 ःथायी ले खा सं . /जीआइआर सं . /PAN/GIR No. : AAATB 0133F (अपीलाथ0 /Appellant) .. (ू2यथ0 / Respondent) अपीलाथ0 ओर से/ Appellant by: Shri Subderhut Singh

ू2यथ0 क4 ओर से/Respondent by: Shri H.N. Mohwala

सुनवाई क4 तार ख / Date of Hearing :09.03.2015 घोषणा क4 तार ख /Date of Pronouncement :09.03.2015

आदे श / O R D E R

PER N.K. BILLAIYA, AM:

This appeal by the assessee is preferred against the order of the Ld. CIT(A)-1, Mumbai dt. 6.9.2013 pertaining to A.Y. 2010-11.

2. The sum and substance of the grievance of the assessee is that the Ld. CIT(A) erred in confirming the action of the AO of denying the exemption u/s. 11 of the Act when the exemption is denied taking a cue 2 ITA No. 6163/M/2013

that the registration of the trust was cancelled u/s. 12AA(3) of the I.T. Act.

3. At the very outset, the Ld. Counsel for the assessee brought to our notice two orders of the Tribunal in ITA Nos. 1100/M/2012 and 3825/M/2013. It is the say of the Ld. Counsel that withdrawal/cancellation of registration u/s. 12A of the Act has been set aside by the Tribunal in ITA No. 1100/M/2012.

4. The Ld. Departmental Representative in his written submission strongly objected and stated that the findings of the Tribunal in the two decisions relied upon by the Ld. Counsel in ITA Nos. 1100/M/12 and 3825/M/13 are not conclusive and were given while considering the issue of registration of the Trust. The Ld. DR pointed out that the Tribunal itself has held that receipts which are from non-members such as interest on deposits are liable to be brought to tax. The Ld. DR concluded by stating that the present case is not covered by the decision of the Tribunal.

5. We have carefully perused the orders of the authorities below and the written submission made by the Ld. DR before us. It is not in dispute that the Tribunal vide order dt. 30.6.2014 in ITA No. 1100/M/12 has reversed the order of the DIT (Exem) cancelling the registration of the Trust. It is also not in dispute that in A.Y. 2009-10, the principle of mutuality was absent. In our considered opinion, having found that the Tribunal has restored the Registration of the Trust, all that need to be verified is whether the trust is substantially covered by the principle of mutuality which requires verification of facts. We, therefore, restore the issue to the file of the AO to decide afresh as per the provisions of the law keeping in mind that the Registration of the Trust has been restored by the Tribunal.

3 ITA No. 6163/M/2013 6. In the result, the appeal filed by the assessee is treated as allowed for statistical purpose.

Order pronounced in the open court at the time of hearing on 9th March, 2015

Sd/- Sd/-

(D.MANMOHAN ) (N.K. BILLAIYA) उपा य! / VICE PRESIDENT लेखा सदःय / ACCOUNTANT MEMBER

मुंबई Mumbai; 8दनांक Dated : 9th March, 2015 व.िन.स./ RJ , Sr. PS

आदे श क4 ूितिल%प अमे%षत/Copy षत of the Order forwarded to :

1. अपीलाथ0 / The Appellant

2. ू2यथ0 / The Respondent.

3. आयकर आयु:(अपील) / The CIT(A)-

4. आयकर आयु: / CIT

5. %वभागीय ूितिनिध, आयकर अपीलीय अिधकरण, मुंबई / DR, ITAT, Mumbai

6. गाड फाईल / Guard file.

आदे शानुसार/ ार BY ORDER, स2या%पत ूित //True Copy// उप/सहायक उप सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अिधकरण मुंबई / ITAT, Mumbai