9911796707
TMI Blog2020 (9) TMI 570X X X X Extracts X X X X X X X X Extracts X X X X ..... ad 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. Brief facts of the case are that the assessee society had filed an application for seeking registration u/s 12AA o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e 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 have failed to do so. In the light of the above facts, the application seeking registration u/s 12AA is hereby rejected and filed." Thus, the crux of the order of ld ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ious 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 the amended rule nowhere requires the appellant to furnish an original copy. On the Contrary, self-attested/ self-certified copy of each and every document/ instrument will be sufficient for seeking registration. Therefore, insistence of the ld. CIT is beyond understanding, con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 by the amended Rule 17 A which requires only self-certified/ self-attested copies and also fully covered by the preamended Rule 17A(1)(b). Yet, however, the Ld. CIT (E) assumed the purported misconception and mis-reading. 5. Even otherwise non production of the originals of the initial trust deed, was a mere Technical breach of rule ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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 filed by the Trust. The said issue would not affect the grant of registration. 8. The ITAT also examined whether the fact that the Trust was for the benefit of a particular community would debar it from exemption and registration under Section 12AA/12A of the Act. The said question was, and in the view of this Court rightly, answered in the negative. In particular, the Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lish 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 established by producing documents evidencing the creation of the trust. This is precisely what has been done in the present case. The order passed by Wakf Board dt. 20th Nov., 1999 recognises various Daudi Vora trusts and in case of present assessee also enlisted the objects of the trust, who would be the managers of the trust and how such managers would be appointed or removed. Tribunal was therefore j ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issions 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) rejected the application filed by the assessee on the ground that as per Rule 17A read with section 12AA(1)(b) of the Act , the certified copy of the instrument establishing the trust needs to be verified with originals. The ld. CIT (Exemption) also held that he is empowered to call for such documents/ information from the trust to satisfy himself about the genuineness of the activities of the trust or to make necessary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itution 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 rules 17A of the Income Tax Rules which came into effect from 19-02-2018. In the present case, the application for seeking registration u/s 12AA of the Act was filed by the assessee society/ trust on 12-01-2019. Therefore, in such circumstances, the amended rule 17A was applicable and on bare perusal of the amended rule it is nowhere required by the assessee to furnish the original documents. On the contrary self-attested as well as self certified copy of each and every documents/instruments were sufficient for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aintenance 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 filed by the Trust. The said issue ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
