AI Structured Summary
Not yet generated for this judgment
Judgment
O R D E R
PER VIMAL KUMAR, JM:
The appeal filed by the assessee is against the order dated 21.03.2026 of the Ld. Commissioner of Income Tax (Exemption), Delhi rejecting application u/s 12AB(1)(ac)(ii) of the Income Tax Act, 1961(hereinafter referred to as ‘the Act’).
Ld. Authorized Representative for appellant/assessee submitted that Ld. CIT(E) erred in rejecting application and cancelling registration for the reason of non-registration of Trust Deed with sub-Registrar ignoring the fact that there is no requirement under law for registration of Trust. Reliance was placed on order dated 18.12.2002 titled as Malli Ram Charitable Trust vs. CIT, 2002(12) TMI 566-ITAT Amritsar and order dated 19.11.2015, ITA No. 292/Coch/2015 titled as Sacred Heart Church vs. CIT(E).
Ld. Departmental Representative relied on impugned order.
From examination of record in light of aforesaid rival contention, it is crystal clear that Ld. CIT(E) vide impugned order dated 21.03.2026 rejected application for registration on the ground that the Trust Deed being not registered is not unforeseeable. Hon’ble ITAT Cochin in ITA No. 292/Coch/2015 titled as Sacred Heart Church vs. CIT(E) in order dated 19.11.2015 in para No. 4 to 9 held as under:
“4.Our order hereinbelow in the case of Sacred Heart Church in I.T.A. No.292/Coch/2015 shall be identically applicable to all the other appeals mentioned hereinabove.
5.There are two-fold questions in the appeals as under: The first question is whether the assessee has filed the instrument in original or copy thereof evidencing the creation of the Trust. Secondly, whether the Trust should be a registered Trust, i.e., the Trust Deed should be registered or not.
6.The Ld. CIT(Exemptions) has denied registration u/s. 12A of the Act as the assessee has not filed the instrument in original or a copy thereof, evidencing the creation of the Trust. In the absence of Registered Deed, the Trust cannot be treated as genuine.
7.As regards the first question, the Ld. Counsel for the assessee stated at Bar that the registered Trust Deed was produced before the Ld. CIT(Exemptions) and a copy thereof was filed along with the application evidencing the creation of the Trust. The Ld. Counsel for the assessee stated that he was having the registered Trust Deed and was ready to produce it before the Ld. CIT(Exemptions). In such circumstances and facts of the case and in the interest of justice as conceded by the Ld. AR and the Ld. DR also, the matter is remitted back to the file of the Ld. CIT(Exemptions) to examine the original Trust Deed and the assessee shall file a copy thereof before the Ld. CIT(Exemptions). The Ld. AR should undertake to co-operate in the proceedings before the Ld. CIT(Exemptions) in this regard. Accordingly, for the limited purpose, the matter is set aside to the file of Ld. CIT(Exemptions) to examine the original Trust Deed and decide the issue accordingly.
8.As regards the second question, the Ld. Counsel for the assessee relied upon the decision of the Hon’ble Allahabad High Court in the case of CIT vs. Krishi Utpadan Mandi Samiti reported in 186 Taxman 460 which is placed at PB pgs. 18 to 31. The Ld. Counsel for the assessee also invited our attention to PB pg. 20 of the decision of the Hon’ble Allahabad High Court (supra) wherein the Hon’ble High Court has clearly mentioned that there is no requirement under the Act that an institution constituted for advancement of any object of general public utility must be registered as a Trust. The Ld. Counsel for the assessee has also relied upon the decision of the ITAT, Amritsar Bench in the case of Malli Ram Charitable Trust vs. CIT which is placed at PB pg. 14 wherein it was held that the application for registration of a Trust cannot be refused merely on the basis of that the Trust Deed was not registered either with the Registrar of Societies or with the Registrar of Documents. In the facts and circumstances of the case, and in view of the decision of Hon’ble Allahabad High Court in the case of CIT vs. Krishi Utpadan Mandi Samiti (supra) and the decision of ITAT, Amritsar Bench in the case of Malli Ram Charitable Trust vs. CIT (supra), we are of the view that the application for registration of Trust cannot be refused merely on the basis that the Trust Deed was not registered either with the Registrar of Societies or with the Registrar of Documents. In the facts and circumstances of the case, the second question raised by the assessee is answered in its favour. The Ld. CIT(Exemptions) is not justified in denying exemption on this count.
9.Since the issues in all the appeals are identical, our order in the case of the assessee in I.T,A. No. 292/Coch/2015 hereinabove is identically applicable to all the other appeals mentioned hereinabove.”
In view of above material facts it is held that the rejection of application u/s 12A of the Act for non-registration of trust deed with the Sub-Registrar prima facie appears to be not correct. Therefore, impugned order dated 21.03.2026 of Ld. CIT(E) is set aside and the matter is restored to the file of Ld. CIT(E) for considering legal requirement of registration of trust deed viz-a-viz immovable property of the trust in terms of section 13 of the Indian Trust Act, 1882 as also requirement of registration of the trust with the Charity Commissioner for which Ld. CIT(E) shall give adequate opportunity to the assessee for rectification of shortcomings / defects if any and thereafter decide afresh in accordance with law by affording a fair opportunity of hearing to the appellant/assessee.
In the result, the appeal filed by the assessee is allowed for statistical purposes.