2016 (1) TMI 1073

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....Briefly stated the facts of the case are that the assessee is a religious trust newly created for the purpose of carrying on social charity, religious and educational activities. The appellant had made application for registration of the trust u/s 12AA of the Act in prescribed form no.10A on 24th July, 2014 along with all necessary documents including registration certificate, trust deed, PAN Card, copy of Charity Commissioner's certificate, audit report and all necessary undertakings and declarations as per the requirement of provisions laid down u/s 12AA of the Act. However, ld. CIT(Exemption) rejected the application filed by the appellant for the very reason that the trust is established for the benefit of a particular community namely ....

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....ecision of Hon'ble Supreme Court in the case of Ahmedabad Rana Cast Association vs. CIT (1971) 82 ITR 704, the decisions of the coordinate Bench in the case of Shree Vasupujya Swami Jain Derasar Trust vs. CIT, Valsad, in ITA No.4470/Ahd/2007 dated 6.8.2010 and in the case of Shri Sayla Sukhadiya Parivar Trust vs.CIT(Exemption) in ITA No.468/Ahd/2015 dated 12.6.2015. 5. On the other hand the ld. DR supported the order of ld. CIT(Eexemption) and also submitted that in the decision of coordinate Bench in the case of Shree Vasupujya Swam Jain Derasar Trust vs. CIT, Valsad in ITA No.4470/Ahd/2007, relied by the assessee, the matter was restored to the file of CIT(Exemption) with the directions to examine, the matter and, therefore, the matter i....

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....education of the community, giving medical help to the community, etc. Under the constitution of the assessee the beneficiaries were members of the Rana caste or community who were natives of Ahmedabad and other members of the community accepted by the caste according to its old custom and usage and staying in Ahmedabad. The question whether for the purposes of the exemption under section4(3)(i) of the Indian Income-tax Act, 1922, and section 11(1)(a) of the Income-tax Act, 1961, the beneficiaries constituted a section of the public. Held, that between the members of the Rana caste or community of Ahmedabad and thse who had to get admitted to that community according to custom and usage there was common quality which united them, namely, ....

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..... 12A of the Act, the CIT has to satisfy himself regarding objects of the trust and the genuineness of its activities after making necessary enquiries ,if considered necessary. In the instant case, the ld. CIT declined registration on the ground that objects of the trust are not charitable. The ld. CIT has not specified as to which particular object is not charitable or is for a particular community or caste.. The main objects of the trust ,as placed before us on page 4 of the paperbook, are undisputedly religious in nature. Religious activities are also construed to be charitable activities as per the decisions in CIT vs. Radhaswami Satsang (1993) 201 ITR 493 (All) and Hazarat Pirmahomed Shah Saheb Roza Committee vs. CIT (1967) 63 ITR (SC)....

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.... our considered view it shall be just and in the interest of justice to restore the matter back to the CIT)E) for deciding the issue after taking into consideration the above stated decisions. CIT(E) shall allow reasonable and proper opportunity of hearing to the assessee before adjudicating the issue. Thus the appeal of the assessee is allowed for statistical purposes." 9. Applying the ratio of Hon'ble Supreme Court Ahmedabad Rana Cast Association vs. CIT (supra), the decision of the Co-ordinate Bench in the case of Shree Vasupujya Swam Jain Derasar Trust vs. CIT, Valsad (supra) and the decision of co-ordinate Bench in the case of Shri Sayla Sukhadiya Parivar Trust vs.CIT(Exemption) (supra), to the facts of the case of assessee, wherein ....