Sri Ramjanki Tapovan Mandir Ranchi Vs CIT(Exemptions)[Jharkhand High Court]
Date-3rd November,2022
Sub: Whether deity of a temple can transfer land belonging to the trust and whether Tribunal can travel beyond the reasons recorded in the order impugned before it and develop a complete de novo case for the Revenue.

The Hon’ble Division Bench of Jharkhand High Court in this case was considering appeal against order of ITAT, Ranchi benches which had upheld the cancellation of registration ordered by CIT(Exemptions) on various grounds in view of the fact that the property belonging to the trust were transferred by way of Joint Venture apparently in view of threat of encroachment of the land. Though the original trust deed did not permit the transfer but the rectified trust deed permitted such transfer which was relied upon. Moreover, a PIL was filed before High court against such transfer of land which though was later on held in favour of assessee by Supreme Court. The division bench relying on the decision of the Supreme Court in the case of Kamla Town Trust held that while looking into the aspect of registration, the CIT(E) could have only looked into the rectified trust deed and not the original trust deed and thus travelled beyond the scope of enquiry contemplated under the Act. The court was also guided by the judgement of Supreme Court in the case of the appellant which had set aside the high court judgement which had held that the transfer of land by deity was against public interest. Finally allowing the appeal the court held that ITAT could not travel beyond the reasons recorded in the order and act as a counsel for Revenue.

This judgement is an important judgement in relation to trust where there are rectification in the instrument of trust.

Ramesh Patodia
05-11-2022