Vikram Vyas Trust, Ahmedabad vs Assessee

This is the assessee's appeal against the order of Ld. DIT(E), Ahmedabad dated 23-01-2013.

2. The facts as culled out from the material on record are as under.

3. Assessee-trust had made an application for registration u/s. 12AA of the Act on 27-07-2012. The said application was rejected by DIT(E) vide I.T.A No. 915/Ahd/2013 A.Y. Block Period Page No 2 Vikram Vyas Trust vs. DIT(E) his order dated 23-01-2013 mainly for the reason that in the trust-deed of the assessee-trust, there was no clause with respect to dissolution of the trust. Aggrieved by the order of DIT(E), the assessee is now in appeal before us and has raised the following grounds:-

"1.1 The order passed U/S.12AA on 23.1.2013 by DIT (Exem), Abad rejecting the application for registration of the appellant trust is wholly illegal, unlawful and against the principles of natural justice.

1.2 The Ld. DIT(E) has grievously erred in law and or on facts in not allowing any opportunity to the appellant before rejecting the application for registration u/s.12AA on the ground of absence of any clause in the trust deed relating to dissolution or transfer of assets to another trust.

2.1 The DIT(E) has grievously erred in law and on facts in rejecting the application for registration U/S.12AA of the appellant trust. The rejection of the said application on the grounds of absence of any clause in the Trust Deed relating to dissolution or transfer of assets is contrary to law and in excess of the powers vested in DIT(E) U/S.12AA.

2.2 That in the facts and circumstances of the case as well as in law, the Ld.DlT(E) ought not to have rejected the application for registration of the appellant trust u/s.12AA."

4. Before us, Ld. AR submitted that though various grounds have been raised but the only issue is with respect to rejection of application seeking registration u/s. 12AA of the Act.

5. Before us, Ld. AR submitted that the only reason for denying the registration u/s. 12AA was the absence of dissolution clause in the trust deed. He further submitted that the reasoning given by Ld. DIT(E) for rejection of registration u/s. 12AA of the Act was not as per law and the scope of inquiry contemplated u/s. 12AA is limited to the extent of Commissioner getting himself satisfied about the object of the trust and the genuineness of its activities. He further submitted that the issue is now I.T.A No. 915/Ahd/2013 A.Y. Block Period Page No 3 Vikram Vyas Trust vs. DIT(E) covered in favour of the assessee by various decisions and more particularly by the decision of Ahmedabad Tribunal in the case of Shree Vanchhara Tirthadhipati Chintamani Parswaprwabhu Trust (ITA No. 610/Ahd/2013 order dated 11-10-2013) and in the case of Panna Parikh Foundation of ITA No. 339/Ahd/2013 order dated 19-04-2013. He therefore submitted that DIT(E) be directed to grant registration to the assessee. Ld. DR on the other hand supported the order of DIT(E) and further pointed out that there is no finding by DIT(E) about the activities of the Trust.

5. We have heard the rival submissions and perused the material available on record. We find that the application for registration u/s. 12AA by the assessee was rejected by DIT(E) mainly for the reason that there was no dissolution clause in the trust deed. We further find that in the order of DIT(E) there is no finding about his satisfaction with respect to the objects of the trust and the genuineness of its activities. Before us also during the course of hearing, the Bench inquired from the Ld. AR about the nature of activities undertaken by the assessee to which he was unable to give any satisfactory reply. We further find that the Co-ordinate Bench of the Tribunal in the case of Shree Vanchhara Tirthadhipati Trust (supra) and after relying on the decision of Delhi Tribunal in the case of Shri Sai Somarpan Trust decided the issue in favour of Assessee. In view of these facts, we are of the view that the matter needs to be re-examined at the end of DIT(E). We therefore set aside the issue to the file of DIT(E) to decide the issue afresh in accordance with law and in the light of discussions hereinabove and after considering the decisions relied upon by the assessee. Assessee is also directed to co-operate by promptly furnishing all the required details called for by DIT(E). I.T.A No. 915/Ahd/2013 A.Y. Block Period Page No 4 Vikram Vyas Trust vs. DIT(E)

6. In the result, the appeal of the Assessee is allowed for statistical purposes.

Order pronounced in open court on the date mentioned hereinabove at caption page

Sd/- Sd/-

(SHAILENDRA KR. YADAV) (ANIL CHATURVEDI) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad : Dated 26/02/2015 ak

आदे श क ूितिल प अमे षत / Copy of Order Forwarded to:-

1. Assessee

2. Revenue

3. Concerned CIT

4. CIT (A)

5. DR, ITAT, Ahmedabad

6. Guard file.

By order/आदे श से,

उप/सहायक पंजीकार आयकर अपीलीय अिधकरण, अहमदाबाद