TaxTMI 
TaxTMI 
2023 (7) TMI 799
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....hese appeals have been clubbed and heard together and a consolidated order is being passed for the sake of convenience and brevity. The facts as well as grounds as per lead case in ITA No.265/SRT/2023 (Sindhu Seva Samiti) have been taken into consideration for deciding these two appeals en masse. 3. The grounds as per the lead case in ITA No.265/SRT/2023, wherein the grounds of appeal raised by the assessee are as follows: "(1) On the facts and circumstances and in law, the learned Commissioner of Income-tax (Exemption) was not justified in rejecting application u/s 12A, particularly when the appellant complied with all the details as also rendered evidence of activities undertaken in consonance with the objects. (2) The learned Commissioner of Income-tax (Exemption) was driven by extraneous considerations while rejecting application. (3) The learned Commissioner of Income-tax (Exemption) was apparently incorrectly driven by the provisions of section 13(1)(b). (4) The learned Commissioner of Income-tax (Exemption) ought to have taken a judicious and liberal view rather than a hyper technical view. (5) The appellant craves leave to add....
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.... religious community or caste. As per Form No. 10AB filed by the assessee, the date of incorporation/Creation/Registration of the trust has been mentioned as 26.03.1980. Further, in the Form No. 10AB filed, the assessee has mentioned the Nature of activities as "Charitable". 7. The Ld. CIT(E) noted that the provision of section 13(1)(b) of the Act is applicable to a charitable trust, as has been settled by the Hon'ble Supreme Court in the case of CIT vs. Palghat Shadi Mahal Trust, reported in 120 Taxman 889, wherein in the case of a public charitable trust, the Hon'ble Apex court held that where the benefit is available to Muslims from all over the world, none of whom except in Kerala are backward classes, the provision of section 13(1)(b) would be attracted and therefore the trust is not entitled for exemption u/s 11 of the Act. Even some courts had held that in case of composite trust/institution, i.e. charitable cum religious, the provision of section 13(1)(b) of the Act is not applicable. However, the said controversy was resolved by the Hon'ble Supreme Court in the case of CIT vs Dawoodi Bohara Jamat, reported in 43 taxmann.com 243, wherein the Hon'ble Apex ....
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....the above referred judgment of Hon`ble Supreme Court case of CIT vs Dawoodi Bohara Jamat (supra), the Ld. CIT(E) held that from the objects of the assessee, it is evident that it is not a religious trust, but it is a charitable trust and above referred objects, which are in the nature of charitable is restricted to benefit of a particular religious community or caste "Sindhis" and therefore as per law laid down by the Hon'ble Apex court in the above referred case, the provision of section 13(1)(b) of the Act, would be applicable and therefore the assessee would not be eligible for exemption u/s 11 of the Act. Therefore in the facts and circumstances of the case, the assessee cannot be granted registration u/s 12A of the Act. In view of the above, the application filed in Form No. 10AB for the registration u/s 12AB of the IT Act, 1961 was rejected by Ld. ld. CIT(E). 11. Aggrieved by the order of the Ld. CIT(E), the assessee is in appeal before us. 12. The Ld. Counsel for the assessee argued that objects of trust are purely charitable without discrimination of creed, nationally or place except name, since it is started by 'Sindhis'. The activities not doubted by Ld. CIT(E).....
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.... and cultivate fellowship and fraternal feelings amongst Sindhi-speaking people of Surat and to bring about unity and cooperation amongst them; (ii) to further the interest of Sindhi-speaking people of Surat and to undertake activities for their welfare, uplift and benefit; to work for their betterment; to redress their grievances and to bring about social reforms according to changing times; (iii) to provide and construct a place for meeting and for organizing cultural or other activities, and to create a social and cultural centre in Surat for Sindhi-speaking people; (iv) to conduct research in and develop Sindhi-language and to take effective steps for its enrichment and encouragement;" 17. We note that trust deed of the assessee contains following other objects, which are not confined to 'Sindhis' caste. Such other objects are reproduced below for ready reference: (v) To undertake activities for the advancement of education. (vi) To help poor of other caste. (vii) To give medical aid and relief to all sections of society. (vii) To help public in general, in case of fire, flood and earthquake. We have gone thro....