TaxTMI 
TaxTMI 
2011 (7) TMI 652
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....el that the CIT has rejected the registration of the trust only on the ground that the assessee trust is not for the benefit of general public within the meaning of section 13(1)(a)/13(1)(b) of the Act. He has stated that the assessee is a religious trust for the benefit of a community known as Shiya Dawoodi Bohra. That the Hon'ble Apex Court has considered the identical issue in the case of Ahmedabad Rana Caste Association v. CIT [1971] 82 ITR 704 (SC) and has held that a trust for the benefit of Ahmedabad Rana caste community is a trust for a general public utility. He has stated that the ratio of the above decision would be squarely applicable to the case of the assessee. He also relied upon the decision of the Hon'ble jurisdictional hig....
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....ction 11 not to apply in certain cases.-(1) Nothing contained in section 11 or section 12 shall operate so as to exclude from the total income of the previous year of the person in receipt thereof- (a) any part of the income from the property held under a trust for private religious purposes which does not enure for the benefit of the public ; From the above, it is evident that section 13(1)(a) is applicable for a private religious trust which does not enure for the benefit of the public. We find that the Hon'ble Apex Court has considered similar issue in the case of Ahmedabad Rana Caste Association (supra). In that case their Lordships held as under: "that between the members of the Rana caste or community of Ahmedabad and those who had....
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....he section of public is distinguished from a specified individual. In our opinion, the ratio of the above decision would be applicable while interpreting the words "private religious trust" which does not enure for the benefit of the public. In the case of the assessee-trust, the benefit of the trust is available to all persons of Dawoodi Bohra Community, therefore the benefit is available to a section of a public and not to some specified individuals. As the Hon'ble Apex Court has held that benefit to a section of the society is sufficient to allow exemption under section 11, therefore, in our opinion, when the benefit is available to entire community i.e. Shiya Dawoodi Bohra, it cannot be said that the trust is for private religious purpo....