SHRI NANDOTARA SWETAMBER MURTIPUJAK JAIN MAHAJAN DERASAR UPASHRAY,BANASKANTHA vs. THE DIT(EXEM.),, AHMEDABAD

आदेश/O R D E R

PER PRADIP KUMAR KEDIA - AM:

The captioned appeal has been filed at the instance of the assessee against the order of the Director of Income Tax (Exemptions), Ahmedabad (‘DIT(E)’ in short), dated 16.09.2013

ITA No. 2593/Ahd/13 [Shri Nandotara S. M. Jain vs. DIT(E)] - 2 -

whereby the registration sought under s.12AA of the Income Tax Act,

1961 (the Act) was declined.

action of the DIT(E) in refusing to grant the registration demanded by the assessee under s.12AA of the Income Tax Act, 1961.

Derasar (Jain Temple). It claims to be a very old trust registered with

Charity Commissioner and came into existence on 08.04.1953. The

present controversy is owing to the fact that the application filed by

the assessee in prescribed form for registration under s.12AA of the

Act was denied to it by the DIT(E) vide order dated 16.09.2013.

appeal before the Tribunal. It was contended on behalf of the assessee

before the Tribunal that, admittedly, no trust deed was filed by the

assessee before the DIT(E) as the same is not available with the

assessee. The learned AR for the assessee however contended that the

assessee trust is very old one which came into existence in April 1953

at which time no trust deed was executed in writing. The assessee

trust however is registered with the Charity Commissioner and holds

bank account and PAN number. The main activity of the trust is to

run and maintain Derasar and Upashray. It was contended that in view

ITA No. 2593/Ahd/13 [Shri Nandotara S. M. Jain vs. DIT(E)] - 3 -

of the decision of the Hon’ble Gujarat High Court in the case of

Pr.CIT(E) vs. Dawoodi Bohra Masjid (2018) 402 ITR 29 (Guj), the

registration applied under s.12AA of the Act ought to have been

granted.

the assessee as well as the orders of the authorities below. The

DIT(E) has denied registration under s.12AA of the Act owing to

alleged lack of satisfaction of genuineness of activities. The primary

reason for holding so appears to be absence of written instrument

(trust deed) by way of which the trust and institution was

created/established and from which its object can be seen.

Dawoodi Bohra Masjid (supra), we are of the view that mere absence

of trust deed cannot be a handicap for granting of registration under

s.12AA of the Act or otherwise in appropriate cases. Thus, it is open

to the assessee to satisfy the DIT(E) about the bonafides of its

charitable activities by other documents in its possession. Hence, we

consider it expedient to restore the issue back to the file of the DIT(E)

for a fresh look on the entire issue in accordance with law and in the

light of the decision of the Hon’ble Gujarat High Court in Dawoodi

Bohra Masjid (supra). The assessee will be entitled to justify the

details of objects and functions of the assessee by producing the

ITA No. 2593/Ahd/13 [Shri Nandotara S. M. Jain vs. DIT(E)] - 4 -

relevant document as may be considered necessary in this regard. The issue is accordingly set aside and restored to the file of DIT(E) for de novo consideration in accordance with law.

purposes.

This Order pronounced in Open Court on 07/01/2019

Sd/- Sd/- (MAHAVIR PRASAD) (PRADIP KUMAR KEDIA) JUDICIAL MEMBER ACCOUNTANT MEMBER Ahmedabad: Dated 07/01/2019 True Copy S. K. SINHA आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. राज�व / Revenue 2. आवेदक / Assessee 3. संबं�धत आयकर आयु�त / Concerned CIT 4. आयकर आयु�त- अपील / CIT (A) 5. �वभागीय ��त�न�ध, आयकर अपील�य अ�धकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाड� फाइल / Guard file. By order/आदेश से,

उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद ।