The trust was denied registration u/s 12A/12AB by the...

The trust was denied registration u/s 12A/12AB by the Commissioner of Income Tax (Exemptions) on the ground that it was established for the benefit of a particular community and not the general public, invoking Section 13(1)(b). The Appellate Tribunal held that Section 13(1)(b) is not applicable to charitable trusts created before the Income Tax Act, 1961 came into force. Since the assessee trust existed prior to the Act, the bar u/s 13(1)(b) does not apply, and its entire income is eligible for exemption u/s 11. The matter was remanded to the CIT(E) to reconsider the application on merits after examining the trust's activities and granting a reasonable opportunity of hearing to the assessee. The assessee was directed to be vigilant and comply with CIT(E)'s requirements.