AI Drafter 
TaxTMI 
TaxTMI 
2020 (9) TMI 570
X X X X Extracts X X X X
X X X X Extracts X X X X
....e grant the registration u/s 12AA of the Act as the applicant samiti had fulfilled all the conditions laid down in the Act. 4. That on the facts and in the circumstances of the case, the CIT (Exemptions) erred in rejecting explanation furnished by the assessee in arbitrary manner. ITA No.1063/JP/2019 1. That on the facts and in the circumstances of the case, the order u/s 80G passed by ld. CIT (Exemption) is bad in law and bad in facts. 2. That on the facts and in the circumstances of the case, the ld. CIT (Exemption) erred in rejecting grant of registration u/s 80G of the Act. 3. That on the facts and in the circumstances of the case, the ld. CIT (Exemption) ought to have grant the registration u/s 80G of the Act as the applicant samiti had fulfilled all the conditions laid down in the Act. 4. That on the facts and in the circumstances of the case, the ld. CIT (Exemption) erred in rejecting explanation furnished by the assessee in arbitrary manner. 2.1 Since both the appeals of the assessee are interrelated and interconnected , therefore, first of all, we deal with the grounds of assessee raised by the ITA No. 1062/JP/2019. ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ain conditions which comprises furnishing of Original Deed/ Certified copy of Deed for verification. 04. In the light of the above section of the Act and Rules, the Commissioner of Incometax has been empowered to call for such documents or information from the trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and may also make such inquiries as he may deem necessary in this behalf. Under such powers vested in CIT (E), the appellant was asked to file details vide letter dated 01/02-07-2019 as mentioned above. 05. As discussed above, the appellant did not submit original documents regarding establishment of the trust/society as well as evidences in support of his claim. Under 2 Rule 17A of Income Tax Rules, 1962 the appellant is required, to produce original/ certified instrument regarding establishing of the trust/society for verification but the same has not be done by the appellant. 06. Sufficient opportunities have been provided to the appellant to produce details and documents in support of his claim for registration u/s 12AA of the Income Tax Act, 1961 but appellant ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....purpose, reads as under: "[Application for registration of charitable or religious trusts, etc. 17A (1). An application under clause (aa) or clause (ab) of sub-section (1) of section 12A for registration of a charitable or religious trust or institution shall be made in Form No. 10A and accompanied by the following documents, namely:- (a) where the trust is created, or the institution is established, under an instrument, self-certified copy of the instrument creating the trust or establishing the institution; (b) where the trust is created, or the institution is established, otherwise than under an instrument, self-certified copy of the document evidencing the creation of the trust, or establishment of the institution; (c) self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be; (d) self-certified copy of the documents evidencing adoption or modification of the objects, if any; X X X X" In the present case, since the application seeking registration was filed on 12.01.2019, the amended Rule 17A was applicable. A bare perusal of....
X X X X Extracts X X X X
X X X X Extracts X X X X
....the same time the appellant also made a request to Registrar Society Bhilwara under Right to Information Act, 2005 vide letter dated 15.07.19 (PB 23-25), In response, the Registrar vide their letter no. 1484 dated 13.08.19 (PB 26) supplied the certificate copy of the original Constitution Deed, registration certificate and of various other papers placed (PB 31-38). Firstly, thus when the certified copies of original papers itself has been made available by the Registrar of Society Bhilwara, there can't be any doubt or dispute about the existence of the appellant Samiti. Secondly, even otherwise the appellant had already submitted a self- attested/ self- certified photocopy of the amended trust deed/ constitution (PB 6-10) and also produced the same in original vide Pr. 6 of letter dated 25.05.19 (PB 19-20). There apart, the appellant also submitted a statement of activity during FY 2018-19, the audited financial statements of accounts signed by independent Statutory Auditor and the PAN Number being AACAS1839C vide reply dated 02.05.2019 (PB 14-17). All these evidences fully proved the existence of the appellant Samiti. Hence, the case of the appellant is covered b....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d its properties and the maintenance of accounts etc. were also set out. It was stated that the objects of the trust were wholly charitable and religious in nature. The ITAT has in its impugned order set out in some detail the contents of the said affidavit regarding the creation of the Trust in Central Tibet in 1159 AD and its objectives and activities over the years. The Court concurs with the ITAT that a formal deed of trust was not necessary for the grant of registration under Section 12A/12AA of the Act. 7. On the question whether the objects and purposes of the Trust were charitable thereby qualifying for registration, the ITAT has set out in its impugned order in detail, the objects of the Trust as declared in the affidavit filed by the 17th Karmapa. It concluded from reading of the various aims and objects that they were charitable in nature. It has been rightly pointed out by the ITAT that it is not necessary that present aims and objects of the Trust should be the same at the time of its establishment. As further rightly pointed out, the stage for examining if the income of the Trust was being applied for its objects would arise only when a return of income is fi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e activity." 6.3 PR CIT (E) Vs. Dawoodi Bohra Masjid (2018 402 ITR 29/ 301 CTR 268 (Guj) (DPB 11-14) wherein it was held that "From the materials on record, it can be seen that the Tribunal had gone through the registration details of the assessee trust contained in the order of Wakf Board and was satisfied that full details of the functions of the trust were available which would establish the existence of the trust, its registration by the Gujarat State Wakf Board which also contained details of objects of the trust, manner of appointment of Mutawalli, etc. Clause (a) of r. 17A requires that the application of registration under s. 12A of a charitable or religious trust or institution would be accompanied by the following documents namely, where the trust is created or the institution is established, under an instrument, the instrument in original and 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. Thus, r. 17A nowhere envisages the existence of a trust deed or its registration. The factum of existence of trust can also be establish....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he Revenue has not been able to show that the view taken by the Tribunal is erroneous. He has also not been able to produce any material on record to show that the approach adopted by the Tribunal is legally unsustainable. Thus, no substantial question of law arises." (Paras 6 & 7) 7 7. The denial to approval u/s 80 G by the CIT (E) is consequential to his denial to registration u/s 12 AA. Our submissions therein are relied upon. Thus, there remaining no valid ground behind denying the registration, the Ld. CIT (E) be directed to grant registration u/s 12 AA as also u/s 80 G of the Act. '' 2.4 On the other hand, the ld. DR relied on the order passed by the ld. CIT (Exemption). 2.5 We have heard the ld. counsel for both the parties and we have also perused the materials placed on record, judgements cited by the parties as well as the order passed by the Revenue authority. From the facts of the present case, we noticed that the assessee had filed an application before the ld. CIT (Exemption) for seeking registration u/s 12AA of the Act. The assessee had also furnished the copy of MOA notorized by the Notary Officer, Bhilwara. However, the ld. CIT (Exemption) r....
X X X X Extracts X X X X
X X X X Extracts X X X X
....xxxxxx." However, the amended Rules, which are relevant for the present purpose, reads as under: "[Application for registration of charitable or religious trusts, etc. 17A (1). An application under clause (aa) or clause (ab) of sub-section (1) of section 12A for registration of a charitable or religious trust or institution shall be made in Form No. 10A and accompanied by the following documents, namely:- (a) where the trust is created, or the institution is established, under an instrument, self-certified copy of the instrument creating the trust or establishing the institution; (b) where the trust is created, or the institution is established, otherwise than under an instrument, self-certified copy of the document evidencing the creation of the trust, or establishment of the institution; (c) self-certified copy of registration with Registrar of Companies or Registrar of Firms and Societies or Registrar of Public Trusts, as the case may be; (d) self-certified copy of the documents evidencing adoption or modification of the objects, if any; X X X X" 2.7 We have analyzed the preamended rules as well as amended rule....
X X X X Extracts X X X X
X X X X Extracts X X X X
....he creation of a Trust. 6. The fact of the matter was that the Assessee claimed that it is an institution/trust created in the year 1159AD and no formal deed of trust was executed at that time. The 17th Karmapa, who is the supreme spiritual Head of Karma Kagyu Lineage, made a declaration of Trust on stamp paper on 29th day of March, 2011 at Delhi setting out the entire history of the Trust along with aims, objects and purposes. Various provisions with regard to the management of the Trust and its properties and the maintenance of accounts etc. were also set out. It was stated that the objects of the trust were wholly charitable and religious in nature. The ITAT has in its impugned order set out in some detail the contents of the said affidavit regarding the creation of the Trust in Central Tibet in 1159 AD and its objectives and activities over the years. The Court concurs with the ITAT that a formal deed of trust was not necessary for the grant of registration under Section 12A/12AA of the Act. 7. On the question whether the objects and purposes of the Trust were charitable thereby qualifying for registration, the ITAT has set out in its impugned order in detail,....