Temple Governed by HPPRICE Act Not Required to Furnish Trust Deed for Registration u/s 12A: ITAT Directs Grant of Registration [Read Order]
Observing that a religious institution governed by a statutory enactment is established otherwise than under an instrument, the Tribunal ruled that the requirement to furnish a trust deed for Section 12A registration does not apply.
Temple Governed - HPPRICE Act - ITAT - taxscan
Temple Governed - HPPRICE Act - ITAT - taxscan
The Chandigarh Bench of the Income Tax Appellate Tribunal (ITAT) ruled that the temple governed by the Himachal Pradesh Hindu Public Religious Institutions and Charitable Endowments Act, 1984 (HPPRICE), was not required to furnish a traditional trust deed and directed the Commissioner of Income Tax (Exemptions) [CIT(E)] to grant registration.
Shree Ram Gopal Temple Trust (assessee) for whom the case originated from the rejection of the application seeking permanent registration u/s 12A(1)(ac)(iii) by the CIT(E) on the sole ground that the assessee-trust failed to furnish a copy of the trust deed, thereby preventing the verification of its aims and objects as mandated by Rule 17A of the Income Tax Rules.
The assessee is an ancient temple in Village Damtal, Tehsil Nurpur, contended that it was not created by a trust deed. It argued that its administration and operation were taken over by the Government of Himachal Pradesh in 1996 and were governed entirely by the provisions of the HPPRICE Act, 1984, under which it is a notified entity.
The counsel for the assessee further submitted that the temple is managed by a committee comprising retired IAS and other senior government officers.
The counsel submitted that the assessee demonstrated its charitable nature by furnishing documents showing objectives such as providing relief to the poor, maintaining a cow shelter, and authorization letters from the District Magistrate permitting expenditure towards the marriage of underprivileged girls.
The two-member bench, comprising Rajpal Yadav (Vice President) and Manoj Kumar Aggarwal (Accountant Member) noted that once the provisions of the HPPRICE Act become applicable, the provisions of any other enactment governing charitable or religious trusts automatically cease to apply.
The bench held that since the temple was a religious institution notified under a statute, it was "established otherwise than under an instrument," and the question of furnishing a trust deed would not arise.
The Tribunal submitted that the assessee had submitted sufficient documentary evidence, including the copy of the HPPRICE notification and records of charitable activities, to support its claim.
The tribunal observed that a certificate of registration with the Endowments Department constitutes a valid document evidencing the creation of the trust citing judicial precedents, including the decision of the Hyderabad Tribunal in the case of Sri Seetharamachandra Swamy Temple vs. CIT(E).
The Tribunal concluded that the registration could not be denied for want of a trust deed when the institution is governed by a special statute. The tribunal directed the CIT(E) to grant the impugned permanent registration to the assessee. In the result, the appeal filed by the assessee was allowed.
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