2022 (9) TMI 920 - AT - Income Tax

Exemption u/s 11 - Assessee carrying out religious activities - CIT-A refusing the grant of registration 12AA to appellant trust - Temple Trust admittedly has been acquired by the State Government - HELD THAT - Admittedly the assessee Trust has not come into existence by way of a Trust Deed. It is an ancient temple and its administration in the public interest has been taken over by the HP State Government. For the said purpose, the temple premises and properties appurtenant to it were notified under the Act. As seen that the assessee temple has been added to the list of the Temple Trust (Sr. No. 21 of Schedule-I of the Himachal Pradesh Hindu Public Religious Institution and Charitable Endowment Act, 1984 (Act No. 18 of 1984) vide Notification dated 12.12.2007. On the Note on Activity from Sr. No. I to IV of the specific assessee is seen vis- -vis the activities of the Shri Shani Dev Temple Trust at Sr. No. I to IV (extracted in para 5.2 of this order) it is seen that these are ad idem. Accordingly, we find that as far as the activity of the present assessee Trust is concerned, these are identical to the Shri Shani Dev Temple Trust wherein Registration u/s. 12AA has been granted by the CIT (E). We have also seen that like the Shri Shani Dev Temple Trust the present assessee has also been acquired under the Himachal Pradesh Hindu Public Religious Institution and Charitable Endowment Act, 1984 at Sr. No. 33 vide Notification dated 04.03.2016. The present assessee has been included in the list vide Notification dated 12.12.1997. The properties of the assessee Trust atleast as on 01.07.2014 stood acquired by the State Administration as the Management of the assessee Trust as from this date was constituted in terms of the Himachal Pradesh Hindu Public Religious Institution and Charitable Endowment Act, 1984. There is no doubt that the Temple Trust admittedly has been acquired by the State Government. For establishing the date of acquisition, no specific document has been placed by the assessee on record. The said date may be verified. Accordingly, for this limited purpose, the issue is remanded directing the ld. CIT (E) to grant registration to the assessee Trust. Appeal of the assessee is allowed for statistical purposes.

Summary

Issues Involved:
1. Refusal of registration under Section 12AA of the Income Tax Act, 1961.
2. Evaluation of the genuineness of the activities and objects of the appellant trust.
3. Comparison with a similar case where registration was granted.

Issue-wise Detailed Analysis:

1. Refusal of Registration under Section 12AA of the Income Tax Act, 1961:
The appellant challenged the order dated 26.04.2018 by the CIT(E) Chandigarh, which denied registration under Section 12AA of the Income Tax Act, 1961. The appellant argued that the trust was formed for charitable purposes, primarily religious activities, and thus deserved registration. The CIT(E) had refused registration on grounds deemed irrelevant by the appellant, without presenting any contrary material regarding the genuineness of the trust's activities.

2. Evaluation of the Genuineness of the Activities and Objects of the Appellant Trust:
The appellant requested a remand for fresh consideration, citing that the CIT(E) had granted registration to a similar trust, M/s. Shri Shani Dev Temple Trust, on 26.09.2017. The appellant provided relevant documents and argued that similar conditions could have been applied to their case. The appellant also referenced the decision in the case of Sri Seetharamachandra Swamy Temple Vs CIT (2016) 71 Taxmann.com 154 (Hyd-Trib) to support their claim.

The appellant trust, an ancient temple acquired by the Government of Himachal Pradesh in May 2016 under the Himachal Pradesh Hindu Public Religious Institution and Charitable Endowment Act, 1984, did not come into existence via a Trust Deed. The temple's administration was taken over by the state government, and its premises and properties were notified under the Act. The CIT(E) acknowledged this but still denied registration. The tribunal noted that the absence of an original Trust Deed was not relevant for consideration by the CIT(E).

3. Comparison with a Similar Case Where Registration Was Granted:
The tribunal examined the case of M/s. Shri Shani Dev Temple Trust, where registration was granted under similar circumstances. The appellant highlighted that the CIT(E) had raised similar questions in both cases. The tribunal found that the activities of the Shri Shani Dev Temple Trust included selling ration on subsidized rates, financial help for marriages, scholarships, medical aid, donations to Gow Shalas, and infrastructure development, which were considered charitable.

The tribunal noted that the appellant trust had similar activities and objectives, which were also charitable. The tribunal found that the CIT(E)'s doubts were possibly caused by the disjointed replies from the appellant. The tribunal emphasized that the Himachal Pradesh Hindu Public Religious Institution and Charitable Endowment Act, 1984, under which the temple was acquired, provided a comprehensive framework for the administration and charitable activities of the trust.

The tribunal concluded that the appellant trust's activities were identical to those of the Shri Shani Dev Temple Trust, which had been granted registration. Therefore, the tribunal directed the CIT(E) to grant registration to the appellant trust, subject to verification of the specific date of acquisition.

Conclusion:
The tribunal allowed the appeal for statistical purposes and directed the CIT(E) to grant registration to the appellant trust after verifying the date of acquisition. The order was pronounced on 13th July, 2022.