Charitable registration and religious-community benefit: governing documents can trigger section 13(1)(b) and justify withdrawal.

Registration under section 12AA can be withdrawn where the institution's constitution and administration show that it is established primarily for the benefit of a particular religious community, attracting section 13(1)(b). The object clause, membership restriction to members of the Society of Jesus, and internal resolutions and minutes indicated that the body was intended to function mainly for Catholics. Its educational character and secular or scientific elements did not change that beneficiary-focused structure. Minority status alone does not defeat registration, but where the governing documents earmark the institution for a specific religious community, the statutory bar in section 13(1)(b) applies and registration is liable to be withdrawn.

---

---

Issues: Whether registration granted under section 12AA of the Income-tax Act, 1961 could be withdrawn on the ground that the assessee was established for the benefit of a particular religious community and was therefore hit by section 13(1)(b) of the Income-tax Act, 1961.

Analysis: The decisive enquiry was whether the assessee's constitution and governing structure disclosed that its objects and administration were directed primarily to the benefit of the Christian community. The object clause, the restriction of membership to members of the Society of Jesus, and the internal resolutions and minutes showed that the institution was intended to function primarily for Catholics. The fact that it also described itself as an educational body with secular and scientific content did not alter the beneficiary-focused character of the institution. The existence of minority status did not by itself defeat registration, but where the constitution itself earmarked the institution for a particular religious community, section 13(1)(b) became applicable. The binding effect of registration was also considered in light of the statutory link between registration and eligibility for exemption under sections 11 and 12.

Conclusion: Section 13(1)(b) applied, and the withdrawal of registration was justified. The issue is decided against the assessee.

---