TEJ KARAN DANDIA SURAJ BAI DANDIA MEMORIAL TRUST,JAIPUR vs. CIT(EXEMPTIONS), JAIPUR

PER SHRI KUL BHARAT, JM.

This appeal by the by the assessee is directed against the order of ld. CIT

(Exemptions), Jaipur dated 27.01.2017. The assessee has raised the following

grounds of appeal :-

“ 1. In the facts and circumstances of the case and in law the ld. CIT (Exemptions), Jaipur has grossly erred in rejecting the application for registration under section 12AA. The action of the ld. CIT (Exemptions) is illegal, unjustified, arbitrary and against the facts of the case. Registration may please be granted under section 12AA.

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12AA of the Income Tax Act 1961 (hereinafter referred to as the Act).

2.1. The ld. Counsel for the assessee submitted that the ld. CIT (Exemptions) has

rejected the application solely on the ground that the assessee trust is not registered

under the Rajasthan Public Trust Act, 1959. He submitted that under the identical

facts, this Tribunal was pleased to restore the appeal in ITA No. 1052/JP/2016 in the

case of M/s. Arihanth Charitable Trust vs. CIT (Exemptions) to the file of the ld. CIT

(E) for decision afresh in accordance with law. The ld. Counsel also placed reliance

on the decision of the Coordinate Bench of the Tribunal in the case of Tsurphu

Labrang vs. Director of Income Tax (Exemptions) (2016) 71 taxmann.com 140

(Delhi – Trib.).

2.2. On the contrary, the ld. CIT D/R supported the order of ld. CIT (Exemptions).

2.3. We have heard rival contentions and perused the material on record. We find

that the Coordinate Bench in ITA No. 1052/JP/2016 by following the decision of

other Coordinate Bench restored the issue of Registration of application under

section 12AA of the Act for decision afresh by observing as under :-

“3.2. We have heard rival contentions, perused the material available on record and gone through the order of ld. CIT (Exemptions). We find that under the identical facts, the Coordinate Bench of the Tribunal in ITA No. 4941/Del/2011 & 3061/Del/2013 has held as under :-

“13. A plain reading of Rule 17A(a) makes it clear that where the Trust is created, or the institution is established, under an instrument, the instrument in original, together with one copy thereof, has to be filed along with prescribed Form No.10A for registration of the Institution/Trust u/s 12A of the Act. However, the second limb of Rule 17A(a) provides that where the Trust is created, or the Institution is established, otherwise than under an instrument, the document evidencing the creation of the trust or the establishment of the institution, together with one

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copy thereof, has to be filed along with the statutory Form No.10A for registration of the Institution/Trust u/s12AA/12A of the Act. Thus, the applicable Rule 17A itself provides that it is not necessary that the Institution/Trust should be established under an instrument. The Rule 17A does not prescribe that in case the Institution/Trust is established otherwise than under an instrument, what type of document evidencing the creation of the Trust or the establishment of the Institution, has to be filed, meaning thereby that the document evidencing the creation of Trust or the establishment of Institution could be of any type. As per the provisions of the Indian Trust Act, the Trust can be created even orally and if the assessee is able to give some evidence of creation of such Trust by a word of mouth, the same shall be eligible for registration u/s 12AA/12A of the Act, provided such evidence is filed and the other conditions under the statute are satisfied.”

In view of the decision of the Coordinate Bench, we deem it proper to restore this appeal of the assessee before the ld. CIT (Exemptions) to decide in accordance with law laid down by the Coordinate Bench.”

For the same reasoning, se deem it proper to restore this appeal to the file of ld. CIT

(E) to decide the issue afresh in the light of the decision as relied on by the ld.

Counsel for the assessee.

Order is pronounced in the open court on 10.10.2017.

Sd/- Sd/- ( HkkxpUn ½ ( dqy Hkkjr) ( BHAGCHAND) ( KUL BHARAT ) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Jaipur Dated:- 10/10/2017. Das/

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आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू

सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत

5 ITA No. 260/JP/2017 Tej Karan Dandia Suraj Bai Dandia Memorial Trust.