TaxTMI 
TaxTMI 
2017 (2) TMI 698
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....of particular religious community and therefore provisions of section 13(1)(b) are attracted and it cannot be held as a charitable trust. 2. The assessee craves to amend, alter and modify any of the grounds of appeal. 3. Necessary cost be allowed to the assessee. 2. Briefly stated the facts are that the assessee had applied for registration under section 12AA of the IT Act, 1961 (hereinafter referred to as the Act) under the prescribed format. The application of the assessee was rejected by ld. CIT (Exemption) on the ground that on the basis of material on record, the objects of the assessee society are not charitable. 3. Now the assessee is in appeal before the Tribunal. 4. The ld. Counsel for the assessee Shri PC Parwal, CA vehementl....
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....tentions and perused the material available on record. The ld. CIT has rejected the application by observing as under :- " 6. From the objects of the society, it can be seen that the Society has been created for the benefit of persons belonging to the Jain Samaj only. As the Society is working for the benefit of a particular religious community or caste i.e. Jain Samaj, it violates the provisions of section 13(1)(b) of the IT Act, 1961. Under section 13(1)(b) r.w. explanation 2, a charitable organization will lose the exemption u/s11 if the income is utilized for the benefit of any particular religious community. 7. Similar issue came up before various judicial authorities. The findings are summarized below : Agrawal Sabha - (2014) 45 t....
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....ected - Held, Yes (Para 12)(in favour of revenue) IT : Where assessee-society was formed with an object to provide accommodation and facilities for performance of marriages and other auspicious functions to members of a particular community, viz.Telugu BeriVysia Community, it could not be regarded as society formed with a charitable purpose within meaning of section 2(15). 8. In all the above judgments Hon'ble Court/Tribunal have held that if the objects of the society/association are for the benefit of a particular religious community then it is not a charitable organization. In the case of present applicant the membership is limited to persons belonging to particular community only and all the objects are for the benefit of Jain Communit....