Matter restored back to CIT (E) for fresh adjudication for registration u/s 12AB
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Case Details: |
Krishnavi Charitable Trust V. CIT (E), New Delhi |
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Appeal No.: |
ITA No. 2789/DEL/2024 |
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Date of Pronouncement: |
07-02-2025 |
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In Favour of: |
Assessee |
The CIT, Exemption for registration u/s 12AB of the Income-tax Act, 1961 has raised certain objections for rejecting the Registration. They are as follows:
- No- existence of irrevocable clause in the Trust Deed. The ld AR explained that the irrevocable clause is available at Page no. 4 of the trust deed at point no. 4.
- Non-existence of dissolution clause in the Trust Deed. The ld AR pointed out that the dissolution clause is clearly written at pg no. 19 of the trust deed at sub point no. xiv of point no. 9.
- Existence of special clause at page no. 21 of the Trust Deed. The ld AR submitted that the process for removal of this clause has already been started through supplementary deed and is likely to be removed within 20 days and the same shall be submitted before the CIT (Exemption) during the proceedings in relation to the registration.
Observations of the Tribunal
- In view of the above factual position, we find that the Lease deed submitted by the assessee before the CIT(E) clearly shows that the objections raised by the ld. CIT(E) has been met.
- We also find that the special clause is required to be omitted, the process of which the assessee has already undertaken.
- We, therefore, find merit in the grounds raised by the assessee and allow the same subject to the condition that the assessee modifies the trust deed by omitting the Special Clause at Page 21 of the Trust.
Verdict of the Tribunal
We are of the considered opinion that, in the interest of justice and fair play, we deem it fit to restore the appeal to the file of the CIT (E) for fresh adjudication on the issue of removal of the special clause. The CIT(E) is directed to decide the issue of special clause afresh after affording reasonable and sufficient opportunity of being heard to the assessee.
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