The Court concurs with the ITAT that a formal deed of trust was not necessary for the grant of registration under Section 12A/12AA of the Act.
RAJASTHAN HIGH COURT
COMMISSIONER OF INCOME TAX (EXEMPTIONS) , JAIPUR VERSUS M/S ARIHANTH CHARITABLE TRUST
No.- D.B. Income Tax Appeal No. 279/2017
Dated.- November 14, 2017
Refusing the registration u/s 12AA to the trust – necessity that the trust should be established under an instrument – Tribunal allowing the appeal of the assessee for statistical purposes – Held that:- The applicable Rule 17A itself provides that it is not necessary that the Institution/ Trust should be established under an instrument. The Rule 17A does not prescribe that in case the Institution/Trust is established otherwise than under an instrument, what type of document evidencing the creation of the Trust or the establishment of the Institution, has to be filed, meaning thereby that the document evidencing the creation of Trust of 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 mouth, the same shall be eligible for registration u/s 12AA/12A of the Act, provided such evidence is filed and the other conditions under the statute are satisfied.
Following the decision of HC [2016 (9) TMI 307 – DELHI HIGH COURT], decided against the Revenue.
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