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Income Tax Appellate Tribunal, JAIPUR BENCHES, JAIPUR
Before: SHRI KUL BHARAT, JM & SHRI VIKRAM SINGH YADAV, AM vk;dj vihy la-@ITA No. 1052/JP/2016
PER SHRI KUL BHARAT, JM.
The appeal by the assessee is directed against the order of ld. CIT
(Exemptions), Jaipur dated 02.11.2016. The assessee has raised the following
grounds of appeal :-
“ 1. The ld. CIT has erred on facts and in law in rejecting the application of assessee for grant of registration u/s 12AA of Income Tax Act, 1961 for the reason that assessee trust is neither registered before concerned Sub Registrar nor before the Assistant commissioner of Devsthan Vibhag and thus it cannot be held as valid legal trust ignoring that the same is not a condition precedent for grant of registration u/s 12AA.
The assessee craves to amend, alter and modify any of the grounds of appeal
Necessary cost be allowed to the assessee.”
2 ITA No. 1052/JP/2016 Arihanth Charitable Trust
Briefly stated the facts of the case are that the assessee had filed an
application on 17.05.2016 in Form No. 10A for seeking registration under section
12AA of the Income Tax Act, 1961 (hereinafter referred to as the Act). The said
application was rejected by the ld. CIT (Exemptions) on the ground that in the State
of Rajasthan the assessee trust has not come into existence through a legal
document by getting it registered before the Competent Authority within the
prescribed time limit. In the case of the applicant trust it is neither registered before
the concerned Sub Registrar nor before the Assistant Commissioner of “Devsthan
Vibhag. Aggrieved, the assessee is in present appeal before this Tribunal.
The ld. Counsel for the assessee submitted that the decision of the ld. CIT
(Exemptions) is contrary to the decision of the Coordinate Bench of the Tribunal
rendered in the case of Tsurphu Labrang vs. Director of Income Tax (Exemptions),
(2016) 159 ITD 848 (Delhi). He submitted that there is no such requirement under
the Income Tax Act that the Trust is required to be registered under the relevant law
of the State. He submitted that in the present case the Trust is created through a
document duly notarized. Therefore, he submitted that for the purpose of
registration under the IT Act, the notarized document is sufficient.
3.1 On the contrary, the ld. D/R opposed the submissions and submitted that the
Trust would into existence if it is registered as per the law.
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 :-
3 ITA No. 1052/JP/2016 Arihanth Charitable Trust
“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 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.
In the result, appeal of the assessee is allowed for statistical purposes.
Order pronounced in the open court on 31 /03/2017.
Sd/- Sd/- ( dqy Hkkjr) ¼foØe flag ;kno½ (VIKRAM SINGH YADAV) ( KUL BHARAT ) ys[kk lnL;@Accountant Member U;kf;d lnL;@Judicial Member Jaipur Dated:- 31 /03/2017. Pooja
4 ITA No. 1052/JP/2016 Arihanth Charitable Trust
आदेश की प्रतिलिपि अग्रेषित@ब्वचल वf जीम वतकमत वितूंतकमक जवरू
The Appellant- M/s. Arihanth Charitable Trust, Pali. 2. The Respondent- The CIT (Exemptions), Jaipur. 3. The CIT, 4. The CIT (A) 5. The DR, ITAT, Jaipur 6. Guard File (ITA No. 1052/JP/2016) vkns'kkuqlkj@ By order,
सहायक पंजीकार@ Aेेपेजंदज. त्महपेजतंत