I.T.A No.61/2019 1 HIGH COURT OF MADHYA PRADESH : JABALPUR (Coram: Hon'ble Shri Justice Ajay Kumar Mittal, Chief Justice Hon'ble Shri Justice Vijay Kumar Shukla, Judge) I.T.A No.61/2019 Commissioner of Income Tax Appellant Vs. M/s Maharashi World Peace Trust Respondent Appearance: Shri Sanjay Lal, Advocate for appellant/Department. ORDER (Oral) (6.1.2020) Per : Ajay Kumar Mittal, Chief Justice This appeal has been filed under Section 260-A of Income Tax Act, 1961 (for short Act) challenging order dated 12.10.2018 passed by Income Tax Appellate Tribunal (for short Tribunal), Indore in ITA No.553/Ind/2017 whereby appeal filed by assessee was allowed and order passed by CIT(E), Bhopal was set aside. 2. appellant has claimed following substantial questions of law:- 1. Whether, on facts & circumstances of case, and in law, ITAT is correct in holding that public charitable Trust does not require to comply with local law of MP requiring registration under MP Public Trust Act 1951 ? 2. Whether, on facts and in circumstances of case and in law, ITAT is correct in holding that genuineness of activities of trust does not include I.T.A No.61/2019 2 compliance with requirement of local law namely MP Public Trust Act ? 3. Briefly stated, facts of case are that respondent-M/s Maharashi World Peace Trust (for short assessee Trust) applied for registration under Section 12AA(1)(b)(i) of Act before CIT(E), Bhopal. said application was rejected on ground that assessee Trust was not registered as public Charitable Trust. order passed by CIT(E), Bhopal was challenged in appeal before Tribunal, who in turn, set aside order passed by CIT(E), Bhopal and allowed appeal filed by assessee Trust holding that action of learned CIT(E), Bhopal denying registration merely for reason that assessee trust was not registered as Public Charitable Trust cannot be held to be justified. Being aggrieved by said order of Tribunal, department has preferred present appeal. 4. Learned counsel for appellant/Department submitted that during pendency of application under Section 12AA of Act, assessee Trust was required to produce copy of registration as Public Charitable Trust but neither satisfactory reply nor certificate of registration as Public Charitable Trust with Registrar of Madhya Pradesh Public Trust was submitted by it. It was further submitted that learned Tribunal has erred in holding that genuineness of activities of trust does not include compliance with requirement of local law namely M.P. Public Trust Act. Further, Tribunal did not controvert ground on which approval was denied by CIT(E), Bhopal. Accordingly, it was prayed that this appeal may be allowed by setting aside order impugned in this appeal. I.T.A No.61/2019 3 5. Having heard learned counsel for appellant/Department, we are of considered opinion that present appeal deserve to be dismissed. 6. learned Tribunal while dealing with argument of learned counsel for assessee Trust regarding rejection of application filed under Section 12AA of Act for reason that assessee Trust was not registered as Public Trust as per M.P. Public Trust Act, 1951 has negatived said finding of CIT(E), Bhopal and held as under:- 6. As per provisions of Section 12AA(1) of Act provides that Principal Commissioner or Commissioner, on receipt of application for registration of Trust or Institution made under Clause or Clause aa of Sub-Section 1 of Section 12A can call for such documents or information as he thinks necessary in order to satisfy himself about objects and genuineness of activities of Trust or Institution and also make such enquiries as he may deem necessary in this behalf and after satisfying himself about objects of Trust or Institution and genuineness of its activities he may pass order in writing registering Trust or Institution or if he is not so satisfied, he may pass order in writing refusing to register Trust or Institution. Provision of Section 12AA(1) of Act refers to Trust or Institution . There seems to be no requirement for trust to be mandatorily registered as Public Charitable trust in State of India where it is located. action of Ld. CIT-Exemptions denying registration merely for reason that assessee Trust was not registered as public Charitable Trust cannot be held to be justified. 7. In present case, registration was applied for by respondent under Section 12AA(1)(b)(i) of Act and provisions under Section 12AA(1) of Act also refers to trust or institution and there is no mandate under Section 12AA of Act that application seeking exemption is required to be applied only by registered Trust or Institution I.T.A No.61/2019 4 under local laws i.e. M.P. Public Trust Act, 1951. learned Tribunal considering provisions of Section 12AA(1) of Act has specifically held that for registering Trust or Institution for purposes of said Act, Principal Commissioner or Commissioner, is required to satisfy itself about objects of applicant Trust or Institution and genuineness of its activities. Under said provision, there is no requirement for Trust to be mandatorily registered as Public Charitable Trust under local Act. In absence of any provision requiring registration as Public Charitable Trust before applying for registration under Section 12AA(1) of Act, findings arrived at by learned Tribunal cannot be faulted and said to be illegal or perverse in any manner. 8. In view of aforesaid, we do not find any reason to take different view from one taken by learned Tribunal as there was no statutory requirement under Act for assessee Trust to get itself registered under any law before applying for registration. No infirmity could be found in order of learned Tribunal warranting interference. Therefore, no substantial question of law arises for consideration. 9. Accordingly, this appeal stands dismissed. (Ajay Kumar Mittal) (Vijay Kumar Shukla) Chief Justice Judge Anchal Digitally signed by ANCHAL KHARE Date: 2020.02.01 12:15:14 +05'30' Commissioner of Income-tax v. Maharashi World Peace Trust