SHREE RAM GOPAL TEMPLE TRUST,HIMACHAL PRADESH vs. ITO WARD NURPUR, NURPUR,HP

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ITA 105/CHANDI/2025Status: DisposedITAT Chandigarh23 September 2025AY 2025-265 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the rejection of the assessee's application for registration under Section 12A(1)(ac)(iii) was not justified. The primary reason for rejection by the CIT(E) was the failure to furnish a trust deed, as mandated by Rule 17A of the Income Tax Rules. However, the Tribunal noted that the assessee is a temple established and governed by the Himachal Pradesh Hindu Public Religious Institutions and Charitable Endowments Act, 1984 (HPPRICE). As per Section 35 of HPPRICE, the provisions of any other enactment governing charitable or religious trusts cease to apply once HPPRICE provisions are invoked. The assessee is a notified religious institution under this statute and is governed by its provisions, not a trust deed. Therefore, the requirement to furnish a trust deed does not apply. The Tribunal relied on the Hyderabad Tribunal's decision in Sri Seetharamachandra Swamy Temple vs. CIT(E), the Chandigarh Tribunal's decision in Temple Trust vs. CIT(E), and the Gujarat High Court's decision in Pr. CIT vs. Dawoodi Bohra Masjid, which held that the existence of a trust can be evidenced by documents other than a trust deed, especially when established under a statute. The Tribunal directed the CIT(E) to grant the registration. No issue was expressly left undecided.

What were the facts?

The assessee, Shree Ram Gopal Temple Trust, appealed to the Income Tax Appellate Tribunal (ITAT) against the rejection of its application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act. The rejection order was passed by the Commissioner of Income Tax (Exemption), Chandigarh, on November 25, 2024. The assessee is a temple, established around 1868, located in Village Damtal, District Kangra, Himachal Pradesh. The temple was taken over by the Government of Himachal Pradesh on January 3, 1996, under the Himachal Pradesh Hindu Public Religious Institutions and Charitable Endowments Act, 1984 ('HPPRICE'). Its administration is overseen by the State Government through a committee of retired IAS and senior government officers. The assessee had been granted provisional registration for Assessment Years 2021-22 to 2023-24. It submitted various documents, including authorization letters for charitable expenditure and proceedings books, to support its application for permanent registration.

What were the issues?

1. Whether the rejection of the assessee's application for registration under Section 12A(1)(ac)(iii) of the Income Tax Act, 1961, was justified on the ground of non-furnishing of a trust deed, when the assessee is a religious institution governed by a state statute? Assessee's Contention: The assessee argued that it is a temple established and governed by the Himachal Pradesh Hindu Public Religious Institutions and Charitable Endowments Act, 1984 (HPPRICE). As per Section 35 of HPPRICE, once its provisions become applicable, other enactments governing charitable or religious trusts, including the Charitable and Religious Trusts Act, 1920, cease to apply. The assessee is a notified religious institution under HPPRICE and is governed by its statute, not a trust deed. Therefore, the requirement to furnish a trust deed does not arise. They relied on the decisions in Sri Seetharamachandra Swamy Temple vs. CIT(E), Temple Trust vs. CIT(E), and Pr. CIT vs. Dawoodi Bohra Masjid. Revenue's Contention: The revenue contended that the assessee failed to furnish the trust deed, and therefore, the objects of the assessee-trust could not be verified by the registering authority. This failure was based on Rule 17A of the Income Tax Rules, which mandates filing a certified copy of the instrument creating or establishing the trust.

Which sections of the Income-tax Act were involved?

Section 12A(1)(ac)(iii),Section 35

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B BENCH, CHANDIGARH

Before: HONBLE SHRI RAJPAL YADAV, VIDE & HONBLE SHRI MANOJ KUMAR AGGARWAL, AM

आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of application seeking registration u/s 12A(1)(ac)(iii) of the Act vide impugned order dated 25-11-2024 of Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)], the assessee is in further appeal before us. The Ld. AR advanced arguments by drawing attention to various documents as placed in the paper-book. The Ld. CIT-DR stated that the assessee failed to furnish trust deed and therefore, the objects of the assessee-trust could not be verified by registering authority. Having heard rival submissions and after due consideration of material on record, our adjudication would be as under.

2.

Upon perusal of impugned order, it could be seen that Ld. CIT(E) has referred to Rule 17A of Income Tax Rules while rejecting the impugned application. This rule mandates the assessee to file certified copy of such instrument creating or establishing the assessee-trust. The rules further provides that when the assessee is created or established otherwise than under an instrument, self-certified copy of the document evidencing creation of establishment of trust is to be filed. The assessee failed to furnish the copy of trust deed and accordingly, the application was rejected on the ground that the aims and objects of the assessee trust could not be ascertained. Aggrieved, the assessee is in further appeal before us.

3.

From the pleadings of Ld. AR, it emerges that the assessee is a temple located in Village Damtal, Tehsil Nurpur, Distt. Kangra (commonly known as ‘Mandir Damtal’) and also known as ‘Shri Ram Thakur Ram Gopal Temple’ and ‘Shree Ram Gopal Temple Trust’. The institution initially came into existence somewhere in the year 1868. Later on, the temple of Damtal was taken over by Government of Himachal Pradesh on 03-01-1996 as per Himachal Pradesh Hindu Public Religious Institutions and Charitable Endowments Act, 1984 (in short ‘HPPRICE’). The copy of the same has been placed on record by Ld. AR. The administration and operations of the assessee-trust is directly overseen by the State Government and the assessee-trust is governed in accordance with the rules and regulations as mentioned in the said act. The temple is governed by a committee duly appointed by the State Government. The members comprise retired IAS officer and other Senior Government officers. The trust is stated to be established to provide relief to the poor, support individuals and organizations, maintain a cow shelter and uplift underprivileged section of society through charitable activities. The list of objectives as carried out by the assessee trust has also been placed on Page Nos. 117 to 118 of the paper books. It could also be seen that the assessee has been granted provisional registration on 27-05-2021 for AYs 2021-22 to 2023-24. All these documents were furnished by the assessee while seeking permanent registration before Ld. CIT(E). In order to establish bona fide nature of activities being carried out by the assessee-trust, the assessee had submitted authorization letters issued by District Magistrate permitting expenditure towards the marriage of underprivileged girls. The assessee had also furnished copies of proceedings books, resolutions and approvals for incurring charitable expenditure. Once the provisions of Sec.35 of HPPRICE become applicable, the provisions of any other enactment governing charitable or religious trusts including the charitable and Religious Trusts Act, 1920 automatically cease to apply. The assessee is a notified entity under Schedule-1 of HPPRICE Act. In such a case, the requirement of having a trust deed would not apply in the case of the assessee. The assessee, in fact, is not created by way of trust-deed rather it is a notified religious institution under statute. The assessee is governed by the provisions of statute and therefore, the question of furnishing of trust deed would not arise. The assessee is an ancient temple and its administration, in public interest, has been taken over by HP State Government. Upon notification under the statute, the Temple Trust ceases to exist and the governance of the institutions would stand governed solely in accordance with the provisions of HPPRICE Act, 1984. On these facts, in our considered opinion, the impugned registration could not be denied to the assessee simply because it failed to furnish the trust-deed. In our considered opinion, the assessee had filed sufficient documentary evidences to Ld. CIT(E) in support of its claim which are to be accepted.

4.

The decision of Hyderabad Tribunal in the case of Sri Seetharamachandra Swamy Temple vs. CIT(E) (ITA No.90/Hyd/2016 dated 17-06-2016) is on similar facts. The bench held that certificate of registration with Endowments Department of State Government would constitute a document evidencing creation of trust. Therefore, the registration could not be denied for want of trust deed. Any institution registered under Sec.6 of AP Charitable and Hindu Religious Institutions and Endowments Act is deemed to be carrying on the charitable and religious activities. Similar is the decision of Chandigarh Tribunal in the case of Temple Trust vs. CIT(E) which has identical facts. In that case, the assessee- trust relied on the aforesaid decision of Hyderabad Tribunal and the bench took a view favoring the assessee. The Hon’ble Gujarat High Court in the case of Pr. CIT vs. Dawoodi Bohra Masjid (90 Taxmann.com 312) held that where a religious trust was not created under an instrument, factum of existence of trust could also be established by producing documents evidencing creation of trust.

5.

Considering all the above stated facts, we direct Ld. CIT(E) to grant impugned registration to the assessee-trust as per its application. 6. The appeal stand allowed in terms of our above order. Order pronounced on 23-09-2025 Sd/- Sd/- (RAJPAL YADAV) (MANOJ KUMAR AGGARWAL) VICE PRESIDENT ACCOUNTANT MEMBER Dated: 23-09-2025. आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF ASSISTANT REGISTRAR

ITAT CHANDIGARH

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