M/S. LIT INDIA MOVEMENT,DELHI vs. DIT (EXEMPTIONS), NEW DELHI

This appeal is preferred by the assessee against order dated 27.03.2015 passed by the Ld. CIT (Exemptions), New Delhi wherein vide the impugned order, the Ld. CIT (E) has rejected the assessee’s applications for grant of registration u/s 12AA of the Income Tax 2 (LIT India Movement) Act, 1961 (hereinafter called as the ‘Act’) as well as application for approval u/s 80G of the Act.

A perusal of the impugned order shows that the main objection of the Ld. CIT (E) in refusing the grant of registration to the assessee trust is that the date of creation of the trust was not found to be mentioned in the trust deed. Another objection is that the trust deed did not bear the signatures of the trustees. The Ld. CIT (E) has also noted that there was no provision in the trust deed with respect to appointment of new trustees.

During the course of proceedings before us, the original trust deed was produced for our verification and we find that the trust deed duly mentions the date of creation of the trust and also bears the signatures of the trustees. The Ld. Authorised Representative has submitted that the issue may be restored to the file of the Ld. CIT (E) so that he can re-examine the trust deed and satisfy himself about the date of creation of trust as well as the signatures of the trustees. It has also been submitted that the trust deed incorporates clauses for appointment of new trustees.

The Ld. CIT DR objected to the issue being restored to the file of the Ld. CIT (E) for the purpose of re-examination and submitted that the assessee had not availed the opportunity which had been given by the Ld. CIT (E) in the first place and, therefore, there was no requirement for remanding the matter back to the Ld. CIT (E).

We have heard the rival submissions and have also perused the material on record. In view of the fact that the deficiencies, as pointed out by the Ld. CIT (E) in the impugned order, are found to be non-existing in the original trust deed as produced before us during the course of proceedings before us, it is our considered opinion that the Ld. CIT (E) should re-examine the issue after providing adequate opportunity to the assessee. Accordingly, we restore the issue to the file, Ld. CIT (E) with the direction to re- consider the application of the assessee in light of our observations as contained in the preceding paragraphs and provide proper opportunity to the assessee before passing the order in accordance with law.

In the final result, appeal of the assessee stands allowed for statistical purposes. (Order pronounced in the open court on 31st July, 2018).