Registration u/s 12AA-Document evidencing creation of Trust could be of any type – ITAT

Registration u/s 12AA-Document evidencing creation of Trust could be of any type.  Trust can be created even orally and if Trust is able to give some evidence of its creation by a word of mouth, the same is eligible for registration.

ABCAUS Case Law Citation:
ABCAUS 2106 (2017) (10) ITAT

In the instant case the assessee trust was aggrieved by the order of the Commissioner of Income Tax (Exemption) . The Commissioner had rejected its application under section 12AA of the Income Tax Act 1961 (the Act) solely on the ground that the assessee trust was not registered under the Public Trust Act of the State.

The Tribunal noted that under the identical facts, Coordinate Bench had restored the issue of Registration of application under section 12AA of the Act for decision afresh by inter alia observing as under;

“…….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 or 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.”

The appeal was restored to the file of CIT (E) to decide the issue afresh in the light of the decision.