Trust deed not mandatory for registration where endowment records can evidence creation of a religious institution.

For registration under section 12AA, rejection solely because a formal trust deed was not filed was not justified where the assessee temple was already registered as a religious institution under the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987. The Endowments Department certificate was treated as relevant evidence of the institution's existence and creation, and documents other than a trust deed could logically establish the creation of a trust for registration purposes. The matter was to be reconsidered on that basis, and the assessee succeeded in appeal.

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Issues: Whether rejection of registration under section 12AA of the Income-tax Act, 1961 for non-filing of a trust deed was justified when the assessee temple was registered under the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987, and whether the Endowments Department certificate could be treated as evidence of creation of the trust.

Analysis: The temple's registration under section 6(c)(ii) of the Andhra Pradesh Charitable and Hindu Religious Institutions and Endowments Act, 1987 showed that it was a religious institution within the statutory scheme governing charitable and religious endowments. The definitions of "religious endowments" and "religious institution" in section 2 supported the conclusion that such an institution is treated as one maintained for religious and charitable purposes. The certificate issued by the Endowments Department was therefore a relevant document evidencing the institution's existence and creation. The reasoning adopted the principle that, where no trust deed exists, documents capable of affording a logical basis for inferring creation of the trust may satisfy the requirement of proof of creation for registration purposes.

Conclusion: The rejection of registration solely for want of a trust deed was not justified. The matter was required to be reconsidered on the basis that the Endowments Department certificate could serve as evidence of creation of the trust, and the assessee succeeded in appeal.

Ratio Decidendi: For registration purposes, documents other than a formal trust deed may constitute valid evidence of the creation of a trust if they logically establish the institution's charitable or religious character.

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