THE HUB TRUST,DELHI vs. CIT EXEMPTION, DELHI

Heard both the parties and perused the material on record. We observed that the ld. CIT (E) rejected the application for registration u/s 12A(1)(ac)(ii) of the Act without properly appreciating the documents and submissions. Ld. CIT(E) erred in holding that the Trust Deed does not contain an irrevocability clause, without appreciating that the clauses relating to non-reversion of property to the settlor and transfer of assets upon dissolution clearly establish the irrevocable nature of the Trust. The matter may be restored to the file of ld. CIT(E).

Ld. Departmental Representative relied on impugned order.

In view of above material facts, Ld. CIT(E) vide impugned order, rejected applications u/s 12A/(1)(b)(ii) for non-providing of specific irrevocability clause, and how assets will be transfer and resolution. The appellant claims that impugned order is passed without appreciating documents and submissions. 5. In the interest of substantial justice, impugned order is set aside and the matter is restored to the file of the Ld. CIT(E) for fresh decision in accordance with law after affording fair opportunity of being heard to the assessee. We also direct assessee to make proper submissions and appear before the Ld. CIT(E) on the date of hearing and cooperate with the tax authorities.

In the result, the appeals filed by the assessee are allowed for statistical purposes.