Smt. P. Madhavi Devi, Judicial Member - This is assessee's appeal against the rejection of assessee's application for registration under section 12AA of the I.T. Act, 1961.
2. Brief facts of the case are that the assessee is a very ancient temple in Warangal District and under the administrative control of Assistant Commissioner, Endowments Department, Warangal. The temple is also registered under section 6(c)(ii) of the Endowments Act and therefore, its affairs are managed by the Executive Officer of the temple appointed by the Department of Endowments, Government of Andhra Pradesh. The day-to-day administration of the temple is carried on as per the established rules and regulations laid down by the department of Endowments, Government of A.P. The assessee made an application for registration under section 12A(1) of the Act by filing an application in Form-10A along with the certificate issued by the Assistant Commissioner, Endowments Department, Warangal with respect to the status of the institution and the financial statements for the F.Y. 2011-12. The CIT(E), after examining the application of the assessee, rejected the same holding that the assessee has failed to produce the trust deed along with the application in Form-10A as according to him, it is mandatory for seeking registration under section 12AA of the Act. Aggrieved by the Order of the CIT(E), the assessee is in appeal before us.
3. The Ld. Counsel for the assessee, submitted that assessee is an ancient temple and is not a Trust created under a Trust Deed. He submitted that the temple is registered with the Endowments Department, Government of A.P. and therefore, the certificate of registration has to be taken into consideration as a valid document evidencing creation of a Trust. He submitted that the certificate issued by the Endowments Department was enclosed along with the application under section 10A but the CIT(E) has summarily rejected the assessee's application without properly appreciating the legal position of the assessee. The Ld. Counsel for the assessee also relied upon the decision of the Hon'ble Madhya Pradesh High Court in the case of Laxminarayan Maharaj v. CIT [1989] 150 ITR 465/17 taxman 80 in support of this contention. He further submitted that the Revenue had filed SLP before the Hon'ble Supreme Court against the above decision and the Hon'ble Supreme Court dismissed the SLP as reported in 186 ITR (Statute) 32 (SC). Thus, according to him, the CIT(E) has committed an error in rejecting the assessee's application for registration under section 12AA of the I.T. Act.
4. The Ld. D.R. on the other hand, supported the orders of CIT(E).
5. Having regard to the rival contentions and the material on record, we find that the assessee temple is registered with the Endowments Department under section 6(c)(ii) of the A.P. Charitable and Hindu Religious Institutions and Endowments Act, 1987. Section 6 of the Act provides for preparation and publication of list of charitable and religious institutions and Endowments on the basis of the income. Clause-(c) and sub-clause (ii) thereof, provides for religious institutions and Endowments other than Mutts not falling under Clause-(a) or Clause-(b) of section-6 of the Act. The religious institutions and Endowments are defined under sub sections 22 and 23 of Section-2 of the said Act. For the sake of ready reference, they are reproduced hereunder :
"(22) 'Religious endowments' means property (including movable property) and religious offerings whether in cash or kind, given or endowed for the support of a religious institution or given or endowed for the performance of any service or charity of a public nature connected therewith or of any other religious charity ; and includes the institution concerned and also the premises thereof.
Explanation-1 :- All property which belonged to or was given or endowed for the support of a religious institution, or which was given or endowed for the performance of any service or charity of a public nature connected therewith or of any other religious charity shall be deemed to be a religious endowment within the meaning of this definition, notwithstanding that, whether before or after the commencement of this Act, the religious institution has ceased to exist or ceased to be used as a place of religious worship or instruction or the service or charity has ceased to be performed.
Explanation-II :- Any Inam granted to an archaka, service-holder or other employee of a religious Institution for the performance of "any service or charity in connection with a religious institution shall not be deemed to be a personal gift to the archaka, service-holder or employee, notwithstanding the grant or ryotwari patta to an archaka, service holder or employee under the Andhra Pradesh (Andhra Area) Inams (Abolition and Conversion into Ryotwari) Act, 1956 but shall be deemed to be a religious endowment ;
(23) 'Religious institution' means a math, temple or specific endowment and includes a Brindavan, Samadhi or any other institution established or maintained for a religious purpose ; "
5.1 The above definitions clearly demonstrate that such religious institutions or Endowments are for the purpose of any service or charity for the public. Therefore, any institution registered under section 6 of the A.P. Charitable and Hindu Religious Institutions and Endowments Act is deemed to be carrying on the charitable and religious activities. The certificate of registration therefore, establishes that the 'Temple' is a religious and charitable institution. The Hon'ble Madhya Pradesh High Court in the case of Laxminarayan Maharaj (cited supra) has held that when a Trust is not created under an instrument i.e., "the document evidencing the creation of the Trust", the evidential document cannot be limited to documents which directly prove the creation of the trust and that all documents which afford a logical basis of inferring creation of the trust can be described to be "documents evidencing the creation of the trust" within the meaning of Rule 17A(a). In the case before us, since the certificate of registration with Endowments Department of the Government of A.P. is a document evidencing the creation of the Trust, we are of the opinion that the CIT(E) has erred in rejecting the application of the assessee for non-filing of the Trust Deed. In view of the same, we deem it fit and proper to set aside the order of the CIT(E) and remand the same to his file for re-consideration of the assessee's application for registration under section 12AA by taking the certificate of registration with the Endowments Department as evidence of creation of trust.
6. In the result, appeal of the assessee is treated as allowed for statistical purposes.