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TMI Blog2022 (9) TMI 920X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - ITA No. 924/CHD/2018 - - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .com 154 (Hyd-Trib). 4. Addressing the facts of the present case, it was submitted that herein also the assessee temple was acquired by the Government of Himachal Pradesh as a charitable institution sometime in May, 2016 under the provisions of sub-section (1) of Section 29 of the Himachal Pradesh Hindu Public Religious Institution and Charitable Endowment Act, 1984. This fact, it was submitted, has been noticed by ld. CIT(E), however, still Registration was not granted. 4. The ld. CIT-DR considering the request posed no objection to the remand. 5. We have heard the rival submissions and perused the material available on record. In the facts of the present case, 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. We have 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 54 attached therein has also been seen. We find that the activity of the specific Shani Dev Temple has been addressed in the following manner by the assessee: I. To sell ration material on subsidized rates to the poor and needy people of the area. The ration is sold to any person irrespective of cast, creed religion of the person on subsidized rates. II. To help the poor people of the area in extending financial help for the marriage of girls of the area. III. To provide scholarships to the needy poor students of the area. IV. To provide medical aid/facility to the needy and poor people on demand. V. To donate oil and ration to the Gow Shalas of the area at the rate of 10 Kg Ration and two liter Sarson Oil per cattle in one month or as decided in the meetings. VI. To undertake institution building and infra structure building measures which would lead to further expansion of temple and its activities. (emphasis supplied) 5.3. Considering this, the Registration has been granted to M/s. Shri Shani Dev Temple Trust on 26.09.2017 holding as under: ORDER U/S 12AA OF THE IT. ACT. 1961 An application in form 10A was e-filed by the Chari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orandum of the applicant the same shall be duly registered with the competent authority under the Applicant's Registration Act, 1860. The fact, thereafter, shall be conveyed to (he undersigned who reserves the right to examine afresh the need for continuation of the registration in the new circumstances. 12. It is emphasized that the registration under section 12AA doesn't preclude the applicant assessee from adhering to the basic requirements inherent in the related provisions of the Act. These requirements, it is reiterated, shall include inter alia filing of audit reports, adherence to the norms of utilization of income for the intended charitable purposes etc. This certificate does not give any exemptions to the applicant from Income Tax automatically. The Assessing Officer will examine the conditions for exemptions u/s. 11, 12,12A (b) 13 of the Act at the time of assessments. 13. The application was filed in financial year 2016-17 and as such the registration u/s. 12AA will be applicable for assessment year 2017-18 and onwards until withdrawn by CTT (Exemptions), Chandigarh, The registration u/s. 12AA has been entered at Serial No. 12A/AASTS3016N/1285 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the applicant was given the leeway to reply through email at [email protected]. The contents of the letter are reproduced as under.- (i) As the bye-laws are still being devised it is not clear how the applicant was created as a society, trust or section 25 company in 1997. This situation leads to presume that in the absence of bye- laws the applicant has been functioning unregulated. Provide rebuttal to the same along with documentary evidence. (ii) You may also explain in the absence of defined objects/bye-laws of the applicant how are the expenses depicted in the Income Expenditure Account are relatable to the claimed objects. 7. On 23.04.2018 Sh. Rajeev Sharma, C.A, counsel for the applicant attended this office and filed written submissions in response to query letter dated 18.04.2018, after considering the reply, following issues emerges:- (i) To the specific query how the applicant was created as society, trust or section 25 company when the bye laws were still being devised and why it should not be presumed that in the absence, of bye-laws the applicant has been functioning unregulated there was no direct response. The applicant merely stated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e funds of the entity which is neither a trust/society/section 25 company do not fall under any of the categories that qualify for coverage under section 11 12 of I.T. Act, 1961. The aforesaid sections clearly enunciate income derived from 'voluntary contribution/corpus donation or income from property shall not be included in the total income of the previous year of the person in receipt of the income under the above note categories. 1. Keeping in view all these facts, it is safe to conclude that applicant is yet to acquire the legal status that would entitle it to the coverage u/s. 11 12 of the I.T. Act, 1961. The claims of being a trust are not backed by any document registering it as such. The only fact that the temple has been taken over by the government under the ambit of Himachal Pradesh Hindu Public Religious Institution and Charitable Endowment Act 1984 doesn't entitle the entity to claim itself as a separate legal obligation. Therefore, 1 have no option but to deny the registration to the applicant u/s 12AA of Income Tax Act, 1961. (emphasis supplied) 5.6. Accordingly, it is seen that possibly the confusion has been caused by the disjointed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unctions etc. of the Commissioner and staff for the administration of the temple Trust; Chapter III thereof has stringent Rules for preparation and maintenance of Registers by the religious institution. The provisions clearly require that u/s. 6 of the Act, not only the origin and history of the Institution but also names of the past and present Trustees are to be diligently maintained. The Section requires the particulars of the Scheme of Administration etc.; names of all officers to whom any salary, emoluments etc. are paid; details of all monies, jewellery, movable and immovable properties of the temple to be maintained. The Registers required to be maintained as per the stringent statutory procedures set out which are monitored and subjected to for the scrutiny and annual verification etc. We have seen that Sections 8 to 16 set out in Chapter-IV of the said Act lays down stringent requirement which the Trustees are required to fulfill in the performance of their duties. The provisions clearly circumscribe the powers under the Act and also requires the Trustees to furnish accounts, returns etc. to the Commissioner of such accounts or any other returns, reports, information requi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on the IT Portal taken into consideration vide para 5 of the impugned order, we find is possibly an act of confusion on the part of the assessee. 5.8. On account of this confusion caused by the assessee, we find possibly ld. CIT (E) misdirected himself. In the facts of the present case also, admittedly the management of the Temple Trust was exclusively in the hands of the State Administration like that of Shri Shani Dev Temple Trust. The aims and purposes which were sought to be fulfilled as per the aforesaid Note also forwarded on the ITBA Portal available at pages 59 to 61 shows that in the facts of the present case, these were identical to Shri Shani Dev Temple Trust. As per record for the assessee, these were: 5. Note on Activity :The institution is of Charitable nature doing service to the society. The charitable activities undertaken/proposed to undertake are as under : I. To sell ration material on subsidized rates to the poor and needy people of the area. The ration is sold to any person irrespective of cast, creed religion of the person on subsidized rates. II. To help the poor people of the area in extending financial help for the marriage of girls of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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