Commissioner Of Income Tax Rajkot Iii v. Chorwadi Mataji Mandir Trust....opponent(S

O/TAXAP/830/2014 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL NO. 830 of 2014 FOR APPROVAL AND SIGNATURE: HONOURABLE MR.JUSTICE M.R. SHAH andHONOURABLE MR.JUSTICE S.H.VORA ====================================== 1 Whether Reporters of Local Papers may be allowed to see the judgment ?see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ?judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the Constitution of India or any order made thereunder ?law as to the interpretation of the Constitution of India or any order made thereunder ? ======================================COMMISSIONER OF INCOME TAX RAJKOT III....Appellant(s)COMMISSIONER OF INCOME TAX RAJKOT III....Appellant(s) Versus CHORWADI MATAJI MANDIR TRUST....Opponent(s) ======================================Appearance: MR PRANAV G DESAI, ADVOCATE for the Appellant(s) No. 1MR ASIT B JOSHI, ADVOCATE for the Opponent(s) No. 1RULE SERVED for the Opponent(s) No. 1 ====================================== CORAM: HONOURABLE MR.JUSTICE M.R. SHAHand HONOURABLE MR.J]USTICE S.H.VORA Date : 25/03/2015 ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE M.R. SHAH) (1.0)Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned Income Tax Appellate Tribunal ‘SMC’ Bench, Rajkot (hereinafter referred to as “the tribunal”) dated 28/03/2014 in ITA No.458/Rjt/2013 by which the learned tribunal has allowed the said appeal preferred by the respondent-trust and has directed the Commissioner of Income Tax to issue / grant registration certificate under Section 12AA of the Income Tax Act (hereinafter referred to as “the Act”), the appellant-revenue has preferred the present Tax Appeal. (2.0)We have heard Shri Pranav Desai, learned advocate appearing on behalf of the appellant-revenue and Shri Asit Joshi, learned advocate appearing on behalf of the respondent-assessee-trust. From the order passed by the Commissioner of Income Tax, Rajkot it appears that the application submitted by the respondent-trust for registration certificate under Section 12AA of the Act came to be rejected mainly / solely on the ground that in the trust deed of the respondent-trust there is no provision for dissolution of the trust. However, on appeal, the learned tribunal, relying upon the decision of the coordinate Bench in the case of Chargam Dasha Porwad Mahamandal Vs. DIT (Exemption) being ITA Nos.337 & 338/Ahd/2013,allowed the appeal preferred by the respondent-trust and has directed the Commissioner to grant / issue the registration certificate under Section 12AA of the Act by holding that the respondent-trust is registered with the sub-registrar and, therefore, registration under Section 12AA of the Act cannot be denied. However, the main issue, whether on the ground that the trust deed does not provide for “dissolution clause”, whether the Commissioner can deny the registration under Section 12AA of the Act is a large question, which is at large before this Court. “dissolution clause”, whether the Commissioner can deny the registration under Section 12AA of the Act is a large question, which is at large before this Court. (3.0)Today, when the present Tax Appeal is taken up for final hearing, Shri Asit Joshi, learned advocate appearing on behalf of the respondent-trust has stated that as such the respondent-trust had already applied for amendment in the trust deed providing “dissolution clause” and the same is pending before the learned Charity Commissioner. He has also placed on record the recent order dated 13/01/2015 of the Commissioner of Income Tax (Exemptions), Ahmedabad in the case of one Shree Bai Education and Charitable Trust, Manavadar by which the learned Commissioner has provided the registration certificate under Section 12AA of the Act on the following conditions; “The trust should be irrevocable. However, for some reason trust is to be dissolved then no property would go to any founder, settler, trustee or donor, member etc. but the properties after meeting liabilities would go to some other trust carrying on similar activities. The transfer of properties, if any, should be as per the provisions of Gujarat Public Trust Act.” (4.0)Shri Asit Joshi, learned advocate appearing on behalf of the respondent-trust has stated at the bar, under instructions, that the respondent-trust has no objection if in the case of the respondent-trust also the registration certificate under Section 12AA of the Act is granted on the aforesaid condition. (5.0)In view of the above and with the consent of the learned advocates appearing on behalf of the respective parties, the impugned judgment and order passed by the learned tribunal is hereby quashed and set aside and the original order passed by the Commissioner dated 27/09/2013 refusing to grant the registration sought by the respondent-trust under Section 12AA of the Act are hereby quashed and set aside and the matter is remitted to the file of the Commissioner of Income Tax (Exemptions), Ahmedabad having its office at Second Floor, Nature View Building, Ashram Road, Ahmedabad to consider the application of the respondent-trust afresh in accordance with law and on its own merits and to consider the request made by the respondent-trust to grant the registration certificate under Section 12AA of the Act on the same terms and conditions on which the registration certificate has been granted in the case of Shree Bai Education and Charitable Trust, Manavadar vide order dated 13/01/2015. The aforesaid exercise shall be completed by the aforesaid authority within a period of three months from the date of receipt of the present order. With this, the present Tax Appeal is disposed of. (M.R. SHAH, J.) (S.H. VORA, J.) Siji