The trust was denied registration u/s 12AB by the CIT(E) on...

The trust was denied registration u/s 12AB by the CIT(E) on grounds that its activities were restricted to a particular religious community or caste ("Leva Patel"), invoking Section 13(1)(b). However, the ITAT held that since the trust existed prior to the Income-Tax Act, 1961, Section 13(1)(b) would not apply. The trust's property was purchased in 1946 and 1959, before the Act's commencement. Even if created for a particular community, registration cannot be denied to a pre-existing trust if it fulfills conditions u/s 12AB and Rule 17A. The ITAT directed the CIT(E) to grant registration, provided other conditions are met, treating the appeal as allowed for statistical purposes.

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