TEJ KARAN DANDIA SURAJ BAI DANDIA MEMORIAL TRUST, Jaipur V. CIT(EXEMPTIONS), Jaipur

ITA 260/JPR/2017

• Counselvise Citation: [2017] 127 COUNSELVISE.COM (IT) 2011 (ITAT-JAIPUR)
• Duration Of Justice: 6 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 10-10-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: misc
• Appeal Filed On: 05-04-2017
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: VARINDER MEHTA CIT DHK
• Keywords: Charitable institution
• Section: 12A; 12AA

Judgement Text

VK;DJ VIHYH; VF/KDJ.K] T;IQJ U;K;IHB] T;IQJ IN THE INCOME TAX APPELLATE TRIBUNAL, JAIPUR BENCHE S, JAIPUR JH HKKXPUN] YS[KK LNL; ,OA JH DQY HKKJR] U;KF;D LNL; DS LE{K BEFORE: SHRI BHAGCHAND, AM AND SHRI KUL BHARAT, JM VK;DJ VIHY LA-@ ITA NO. 260/JP/2017 M/S. TEJ KARAN DANDIA SURAJ BAI DANDIA MEMORIAL TRUST, B018, RAJENDRA MARG, BAPU NAGAR, JAIPUR. CUKE VS. THE CIT (EXEMPTIONS), JAIPUR. LFKK;H YS[KK LA-@THVKBZVKJ LA-@ PAN NO. AACTT 6025 C VIHYKFKHZ@ APPELLANT IZR;FKHZ@ RESPONDENT FU/KZKFJRH DH VKSJ LS@ ASSESSEE BY : SHRI RAJEEV SOGANI (CA) JKTLO DH VKSJ LS@ REVENUE BY : SHRI VARINDER MEHTA (CIT) LQUOKBZ DH RKJH[K@ DATE OF HEARING : 06.10.2017. ?KKS'K .KK DH RKJH[K@ DATE OF PRONOUNCEMENT : 10/10/2017. VKNS'K@ ORDER PER SHRI KUL BHARAT, JM. THIS APPEAL BY THE BY THE ASSESSEE IS DIRECTED AGAI NST THE ORDER OF LD. CIT (EXEMPTIONS), JAIPUR DATED 27.01.2017. THE ASSESSE E HAS RAISED THE FOLLOWING GROUNDS OF APPEAL :- 1. IN THE FACTS AND CIRCUMSTANCES OF THE CASE AN D IN LAW THE LD. CIT (EXEMPTIONS), JAIPUR HAS GROSSLY ERRED IN REJEC TING THE APPLICATION FOR REGISTRATION UNDER SECTION 12AA. THE ACTION OF THE LD. CIT (EXEMPTIONS) IS ILLEGAL, UNJUSTIFIED, ARBITRARY AND AGAINST THE FACTS OF THE CASE. REGISTRATION MAY PLEASE BE GRANTED UNDER SECTION 12AA. 2. THE ASSESSEE TRUST CRAVES ITS RIGHTS TO ADD, AME ND OR ALTER ANY OF THE GROUNDS ON OR BEFORE THE HEARING. 2 ITA NO. 260/JP/2017 TEJ KARAN DANDIA SURAJ BAI DANDIA MEMORIAL TRUST. 2. THE ONLY EFFECTIVE GROUND IS AGAINST REJECTION O F APPLICATION UNDER SECTION 12AA OF THE INCOME TAX ACT 1961 (HEREINAFTER REFERR ED TO AS THE ACT). 2.1. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THA T THE LD. CIT (EXEMPTIONS) HAS REJECTED THE APPLICATION SOLELY ON THE GROUND THAT THE ASSESSEE TRUST IS NOT REGISTERED UNDER THE RAJASTHAN PUBLIC TRUST ACT, 1959. HE SUBM ITTED THAT UNDER THE IDENTICAL FACTS, THIS TRIBUNAL WAS PLEASED TO RESTORE THE APP EAL IN ITA NO. 1052/JP/2016 IN THE CASE OF M/S. ARIHANTH CHARITABLE TRUST VS. CIT (EXE MPTIONS) TO THE FILE OF THE LD. CIT (E) FOR DECISION AFRESH IN ACCORDANCE WITH LAW. TH E LD. COUNSEL ALSO PLACED RELIANCE ON THE DECISION OF THE COORDINATE BENCH OF THE TRIB UNAL IN THE CASE OF TSURPHU LABRANG VS. DIRECTOR OF INCOME TAX (EXEMPTIONS) (20 16) 71 TAXMANN.COM 140 (DELHI TRIB.). 2.2. ON THE CONTRARY, THE LD. CIT D/R SUPPORTED THE ORDER OF LD. CIT (EXEMPTIONS). 2.3. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED TH E MATERIAL ON RECORD. WE FIND THAT THE COORDINATE BENCH IN ITA NO. 1052/JP/2016 B Y FOLLOWING THE DECISION OF OTHER COORDINATE BENCH RESTORED THE ISSUE OF REGIST RATION OF APPLICATION UNDER SECTION 12AA OF THE ACT FOR DECISION AFRESH BY OBSE RVING AS UNDER :- 3.2. WE HAVE HEARD RIVAL CONTENTIONS, PERUSED THE MATERIAL AVAILABLE ON RECORD AND GONE THROUGH THE ORDER OF LD. CIT (EX EMPTIONS). WE FIND THAT UNDER THE IDENTICAL FACTS, THE COORDINATE BENCH OF THE TRIBUNAL IN ITA NO. 4941/DEL/2011 & 3061/DEL/2013 HAS HELD A S UNDER :- 13. A PLAIN READING OF RULE 17A(A) MAKES IT CLEAR THAT WHERE THE TRUST IS CREATED, OR THE INSTITUTION IS ESTABLI SHED, UNDER AN INSTRUMENT, THE INSTRUMENT IN ORIGINAL, TOGETHER WI TH ONE COPY THEREOF, HAS TO BE FILED ALONG WITH PRESCRIBED FORM NO.10A FOR REGISTRATION OF THE INSTITUTION/TRUST U/S 12A OF TH E ACT. HOWEVER, THE SECOND LIMB OF RULE 17A(A) PROVIDES THAT WHERE THE TRUST IS CREATED, OR THE INSTITUTION IS ESTABLISHED, OTHERWI SE THAN UNDER AN INSTRUMENT, THE DOCUMENT EVIDENCING THE CREATION OF THE TRUST OR THE ESTABLISHMENT OF THE INSTITUTION, TOGE THER WITH ONE 3 ITA NO. 260/JP/2017 TEJ KARAN DANDIA SURAJ BAI DANDIA MEMORIAL TRUST. COPY THEREOF, HAS TO BE FILED ALONG WITH THE STATUT ORY FORM NO.10A FOR REGISTRATION OF THE INSTITUTION/TRUST U/ S12AA/12A OF THE ACT. THUS, THE APPLICABLE RULE 17A ITSELF PROVI DES THAT IT IS NOT NECESSARY THAT THE INSTITUTION/TRUST SHOULD BE ESTABLISHED UNDER AN INSTRUMENT. THE RULE 17A DOES NOT PRESCRIB E THAT IN CASE THE INSTITUTION/TRUST IS ESTABLISHED OTHERWISE THAN UNDER AN INSTRUMENT, WHAT TYPE OF DOCUMENT EVIDENCING THE CR EATION OF THE TRUST OR THE ESTABLISHMENT OF THE INSTITUTION, HAS TO BE FILED, MEANING THEREBY THAT THE DOCUMENT EVIDENCING THE CR EATION 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 MOU TH, THE SAME SHALL BE ELIGIBLE FOR REGISTRATION U/S 12AA/12 A OF THE ACT, PROVIDED SUCH EVIDENCE IS FILED AND THE OTHER CONDI TIONS 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 COOR DINATE BENCH. FOR THE SAME REASONING, SE DEEM IT PROPER TO RESTOR E THIS APPEAL TO THE FILE OF LD. CIT (E) TO DECIDE THE ISSUE AFRESH IN THE LIGHT OF THE DECISION AS RELIED ON BY THE LD. COUNSEL FOR THE ASSESSEE. 3. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALL OWED FOR STATISTICAL PURPOSES. ORDER IS PRONOUNCED IN THE OPEN COURT ON 10.10. 2017. SD/- SD/- ( HKKXPUN ( DQY HKKJR ) ( BHAGCHAND) ( KUL BHARAT ) YS[KK LNL;@ ACCOUNTANT MEMBER U;KF;D LNL;@ JUDICIAL MEMBER JAIPUR DATED:- 10/10/2017. DAS/ 4 ITA NO. 260/JP/2017 TEJ KARAN DANDIA SURAJ BAI DANDIA MEMORIAL TRUST. VKNS'K DH IZFRFYFI VXZSF'KR@ COPY OF THE ORDER FORWARDED TO: 1. THE APPELLANT- TEJ KARAN DANDIA SURAJ BAI DANDI A MEMORIAL TRUST, JAIPUR. 2. THE RESPONDENT THE CIT (EXEMPTIONS), JAIPUR. 3. THE CIT(A). 4. THE CIT, 5. THE DR, ITAT, JAIPUR 6. GUARD FILE (ITA NO. 260/JP/2017) VKNS'KKUQLKJ@ BY ORDER, LGK;D IATHDKJ@ ASSISTANT. REGISTRAR 5 ITA NO. 260/JP/2017 TEJ KARAN DANDIA SURAJ BAI DANDIA MEMORIAL TRUST.