TMI Blog2022 (10) TMI 420X X X X Extracts X X X X X X X X Extracts X X X X ..... ter also with letters submitted through the ld. AR during the course of hearing. In considered view that as per amended Rule 17A of the Income Tax Rules which are applicable in the case of the assessee, the assessee was not required to fulfill any original copy of the documents rather self certified copy/instrument was sufficient for the purpose of verification by the ld. CIT(E), therefore, ground No. 1 and 2 of the assessee is allowed. - ITA No. 315/JP/2020 - - - Dated:- 26-9-2022 - DR. S. SEETHALAKSHMI , JM And SHRI RATHOD KAMLESH JAYANTBHAI , AM Assessee by : Shri Mahendra Gargieya ( C. A.) Revenue by : Shri Sanjay Dhariwal ( CIT ) ORDER PER: DR. S. SEETHALAKSHMI , J. M. This is an appeal filed by the assessee directed against the order of the learned Commissioner of Income Tax (Exemption) [hereinafter referred to as Ld. 'CIT(E)'], Jaipur dated 25.09.2020 for the Assessment year 2020-21. 2. At the outset of hearing, the Bench observed that there is delay of 15 days in filing the appeal by the assessee for which the ld. AR of the assessee filed an application dated 01.01.2021 for condonation of delay with following prayers. The humble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y other order, which this Hon'ble ITAT deems fit and proper, be also passed in favour of applicant assessee. 3. During the course of hearing, the ld. DR has no objection to assessee application for condonation of delay and prayed that court may decide the issue as deem fit and proper in the case. 4. We have heard the rival contentions and perused the materials available on record. The prayer as mentioned above by the assessee for condonation of delay of 15 days has merit and we concur with the submission of the assessee. Thus the delay of 15 days in filing the appeal by the assessee is condoned. 5. The assessee raised the following ground of appeal:- 1. The ld. CIT(E), Jaipur erred in law as well as on the facts of the case in denying registration sought u/s. 12AA(1)(a) of the Act. Such denial being contrary to the law provisions of law and facts, the registration as prayed, kindly be granted. 2. The ld. CIT(E), Jaipur further erred in law as well as on the facts of the case in denying registration sought u/s. 12AA(1)(a) of the Act on the ground that the appellant failed to submit original documents establishing the appellant documents establishing the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st three years (as applicable.) 5. To decide the matter of seeking registration u/s. 12AA, the genuineness of the activities being under taken by the applicant are also to be examined. The applicant has not submitted any such details and other information as mentioned above. Therefore, it is not known that the applicant is actually carrying out the activities as per its objects and at the premises mentioned by it in Form 10A. Thus, the charitable nature and genuineness of the activities of the applicant could not be established. 6. Sufficient opportunity has been provided to the applicant to produce details and documents in support of his claim for registration 12AA of the Income Tax Act, 1961 but applicant have failed to do so. In the light of the above facts, the application seeking registration u/s. 12AA is hereby rejected and filed. 7. Aggrieved by the CIT(E) order, the assessee is in appeal before us. The Ld. AR for assessee submitted a detailed Written submissions which was received by the office registry on 09.09.2021 which are as under:- Brief Facts: The appellant (hereinafter also referred to as trust/Society ) is a charitable society, established long b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... blished. 6. Sufficient opportunity has been provided to the applicant to produce details and documents in support of his claim for registration us 12AA of the Income Tax Act, 1961 but applicant have failed to do so. In the light of the above facts the application seeking registration us 12AA is hereby rejected and failed. Thus, the crux of the order of ld. CIT(E) is that as per Rule 17A r/w S. 12AA(1)(b) of the Act original instrument establishing the trust and other evidences were not filed in original. The CIT is empowered to call for such document/information to satisfy himself of the genuineness of the activities or to make necessary enquires. U/s 17A appellant is required to produce original/certified instrument establishing the institution for verification and alleging failure to comply this part, he denied the registration. Hence this appeal. SUBMISSIONS: 1. Misreading of the Provisions/Rules:- No Valid basis: At the outset, it is evidently clear that the Ld. CIT (E) has referred to the pre-amended Rules 17A which stood prior to the newly slatted Rule 17A by the Income Tax (First Amendment) Rules, 2018 made effective from 19.02.2018. The pre-amended ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... X X In the present case, since the application seeking registration was filed on 06.02.2020, hence, 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, contrary to the specific provisions of rules and law, hence, without jurisdiction. The impugned order deserves to the dismissed at this stage itself. 2. It is further submitted that self attested copies of the main objects and amended objects were submitted alongwith the application itself. Moreover Certified Copies of both the documents obtained from Devstan Vibhag, Rajasthan were also duly produced before the CIT(E) as soon as it was received on 22.09.2020 However, the same have been completely ignored and therefore the allegation levelled by the ld. CIT(E) on this aspect is factually wrong. Even assuming copies certified from Devstanvibhag were not filed then too, this being not a condition precedent, could not dissented the trust from registration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f charitable or religious activities for preceding three years along with pictures. Charitable activities carried out: In the light of the voluminous evidences as submitted and stated herein above (copies included in the Paperbook also), it is fully established that the appellant carried out charitable activities in accordance with the main and amended object of the trust deed. The ld. CIT(E) went though referred to the above mentioned letter of 28.08.2020 yet the same was not considered. No specific instance has been pointed by the ld. CIT(E) but it appears in mere pretense on the part of the ld. CIT(E) to reject the application by incorrectly alleging that various documents/information were not filed. The photographs of the activities, the note on charitable activities together with income and expenditure account and other evidence fully established that the appellant was genuinely carrying out charitable activities. Since all the relevant documents are already available on record, the appellant deserves registration u/s. 12AA and it is humbly prayed that the Hon'ble Tribunal may kindly direct the CIT(E) to grant registration instead of giving the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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 concurs with the conclusion of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st, 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, 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 justified in directing registrati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was considered by the Hon'ble ITAT in the case of Arya Samaj Mandir Vs. CIT(E), Jaipur and decided in favour of the assessee in the ITA Nos. 1081 1082/JP/2019 vide order dated 03.09.2020 holding in para 2.7 and onwards, is as under: 2.7 We have analyzed the pre amended 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 seeking registration. Therefore, under these circumstances, the insistence by the ld. CIT(Exemption) for asking original documents of the instruments is beyond understanding and contrary to the specific provisions of law and rules. X XXXX In view of the above discussions, we are of the considered view that as per amended rule 17A of the Income Tax Rules, which a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 18. The application seeking for registration was filed on 06.02.2020 hence, the amended Rules 17A was applicable for the application for registration of charitable trust, the trust is created under instrument, self certified copy of the document evidencing the creation of the trust is essential as per Rules 17A self attested/self certified copy of each and every documents/instrument will be sufficient for seeking registration. But the ld. CIT(E) has erred in understanding, contrary to the specific provisions of Rules and law which are relevant for the present case. The ld. AR for the assessee submitted that all the self certified copy which are sufficient for the registration are submitted. Further, the ld. AR for the assessee submitted that self attested copies of the main objects and amended objects were submitted along with application which are certified copies of both documents obtained from Devstan Vibhag, Rajasthan were also duly produced before the ld. CIT(E) as soon as it was received on 22.09.2020 but the ld. CIT(E) has completely ignored the submission made by the assessee where all the conditions were fulfilled whenever the ld. CIT(E) has raised voluminous queries and a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 48-81 11. An undertaking u/s. 2(15) and providing details of category of charitable purpose 82-83 12. Amended trust deed after merging the required clauses 84-89 13. Copy of PAN card of trust 90 14. Copy of last three years ITR along with computation and audit report u/s. 10B 91-264 15. Power of attorney duly signed of favour of A/R 265 16. Details of charitable or religious activities for preceding three years along with pictures 266-300 Thirdly we observed that the ld. CIT(E) is factually incorrect and unjustifiable where the ld. CIT(E) has failed to observe that the activities carried out by the trust is genuine in nature. We observed that the assessee carried out a charitable activities in accordance with law with main objects and amended objects of the trust deed. A letter which was sent by ..... X X X X Extracts X X X X X X X X Extracts X X X X
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