2014 (6) TMI 477

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.... rejected the application on the ground that (i) the dominant object underlying the constitution of the trust was for the benefit of only the Agrawal community; and (ii) during the financial year 2011-12, the assessee earned income of Rs.17.96 lacs and incurred an expenditure of Rs. 20.74 lacs in organizing 'Shri Maharaja  Agrasen Jayanti' which indicates that the activity was specifically for the Agrawal community. The other expenses of the trust were found to be as follows : "Donation 18,200/- Web Site Exp. 1,500/- Stationery 1,650/- Ugai (Bad Debts) 25,900/- Bank Charges 556/- Misc. Exp. 39,801/- Salary A/c 6,000/- Scooter Exp. 42,129/- The Commissioner also found that no documentary evidence had been produ....

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.....74 lacs in organizing 'Shri Maharaja  Agrasen Jayanti' which was meant only for the Agrawal community. The Tribunal also recorded the admission that no documentary evidence was furnished either before the CIT or before the Tribunal in respect of any activity of a general public utility. But, it has been urged on behalf of the assessee by the learned counsel that during the course of the hearing before the Tribunal a paper book was filed. A copy of the index has been extracted in paragraph 9 of the writ petition. The balance sheet of the assessee as at 31 March 2012, to which the attention of the Court has been drawn by the learned counsel, would indicate as the assets of the trust, a building valued at Rs. 2.53 crores. The in....

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....ions 12A and 12AA lay down the procedural requirements. Section 13 sets out the circumstances in which the exemption would not be available to a religious or charitable trust. One restriction is where the trust or institution is created or established for the benefit of any particular religious community or caste [Section 13(1)(b)]. In this context, while interpreting the scheme of these provisions, the Supreme Court has held that Section 13 has to be read in conjunction with the provisions of Sections 11 and 12 for determining the eligibility of a trust to claim exemption under the aforesaid provisions: "16. Therefore, under the scheme of the Act, Sections 11 and 12 are substantive provisions which provide for exemptions available to a re....

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.... community. The CIT relied upon such material as was produced by the assessee. If according to the assessee, the trust exists not merely for the benefit of the Agrawal community or for a particular religious group but for the benefit of the general public for a charitable or religious purpose, it would be necessary for the assessee to satisfy the Commissioner about the activities of the trust or the genuineness of its objects. Such a requirement is expressly incorporated in clauses (a) and (b) of sub section (1) of Section 12AA. The assessee having failed to discharge the burden, the Tribunal in our view was justified in confirming the decision of the Commissioner. At the same time, it has been left open to the assessee to move a fresh app....