TaxTMI 
TaxTMI 
2017 (1) TMI 1099
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....cation for registration. An affidavit has been filed by the department, expressing its inability to produce the record. Therefore, there is nothing on record at all to suggest that an application for exemption under Sections 11 and 12 was there at all for consideration at the time of applying for registration. Even otherwise, the question of granting of exemption or not, would be at a secondary stage and it would not have resulted in dismissing the application for registration of a charitable trust for which different aspects are to be examined such as the dominant nature and purposes of the trust. This is an appeal under Section 260A of the Income Tax Act 1961 by the department against an order dated 4.4.2008 for the assessment year N.A....
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....a charitable institution entitled to exemption under section 11 of the Act." The facts of the case are that the assessee trust filed an application in Form No. 10-A on 29.5.2007 before the Commissioner of Income Tax-1, Kanpur for grant of registration under Section 12A of the Act, 1961. The application was filed alongwith certified copy of trust deed registered with Sub Registrar, Zone-4, Kanpur. During the course of proceedings under Section 12A of the Act, it was noticed that the main objects as well as the activities of the trust were construction and maintenance of temple and the same were hit by the provisions of section 13(1)(b) of the Income Tax Act, 1961. Therefore, vide letter dated 1.11.2007, the Commissioner of Income-1, Kanpu....
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....the case of the assessee. Therefore, the aforesaid application for registration under Section 12A(a) is rejected." The assessee preferred appeal before the tribunal against the order dated 21.11.2007 of the Commissioner of Income Tax-1, Kanpur. The tribunal vide its order dated 4.4.2008 has directed the Commissioner of Income Tax to grant registration to the assessee under section 12AA of the Act. While directing to grant registration under section 12A of the Act to the assessee, the tribunal relied on the decisions of the tribunal, Delhi bench in the case of Agarwal Mitra Mandal Trust Vs. DIT wherein the reliance was placed on the decision of Hon'ble Supreme Court in the case of Ahmedabad Rana Caste Association Vs., CIT, 82 ITR 704,....
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....t. The Hon'ble Apex Court while examining a similar question with regard to the applicability of Sections 215, 11, 12, 12A, 12AA and 13, clearly noted in its judgement, had observed while examining the provisions of Section 13(1)(b) specifically:- "We would now proceed to examine the objects under the provisions of Section 13(1)(b) of the Act. It becomes amply clear from the language employed in the provisions that section 13 is in the nature of an exemption from applicability of section 11 or section 12 and the examination of its applicability would only arise at the stage of claim under sections 11 or 12. Thus, where the income of a trust is eligible for exemption under section 11, the eligibility for claiming exemption ou....