The Jaipur Bench of the Income Tax Appellate Tribunal ( ITAT ) has held that Self-certified copy of documents seeking registration of charitable trust under Section 12 AA of the Income Tax Act,1961 is sufficient for verification under amended Rule 17A.
The assesseewas represented by Shri Mahendra Gargieya and the revenue was represented by Shri Sanjay Dhariwal.
Radheyshyam Mandir Trust, the appellant ( “trust/ Society”) is a charitable society, engaged in promoting nationality, education, and personality development of the students without any discrimination of caste, creed and sex.
The appellant filed an online application on 06-02-2020 in Form No. 10A for seeking registration u/s 12AA of the Income Tax Act, 1961. The appellant society was issued a letter/notice requesting to submit certain documents/ explanations and also to produce original RC/MOA for verification. Due to some personal reason appellant society was unable to comply with the aforesaid requirement.
The CIT(E) has stated in his order that sufficient opportunities have been provided to the assessee to produce relevant information/documentation in support of its claim seeking registration U/s 12AA(1)(a) of the Income Tax Act and the assessee has failed to avail of such opportunity which resulted in the rejection of application seeking registration.
It was contended by the assessee that Under Rule 17A there is no necessity to produce the original and self-certified copy of the instrument and establish the institution for verification. Further stated that the pre-amended Rules 17A which stood before the newly substituted Rule 17A by the Income Tax Rules, 2018 w.e.f. 19.04.2018.
The ITAT viewed that the application seeking registration was filed on 06.02.2020 hence, the amended Rules 17A was applicable for the application for registration of charitable trust, the trust is created under the instrument, and self-certified copy of the document evidencing the creation of the trust is essential as per Rules 17A self-attested/self-certified copy of every documents/instrument will be sufficient for seeking registration.
Dr S. Seethalakshmi, JM & Shri Rathod Kamlesh Jayantbhai, AM observed that the CIT(E) has failed to observe that the activities carried out by the trust are genuine in nature. The ITAT held that as per amended Rule 17A of the Income Tax Rules which are applicable in the case of the assessee, the assessee was not required to fulfil any original copy of the documents rather self-certified copy/instrument was sufficient for verification by the CIT(E) and the appeal of the assessee was allowed.
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