TaxTMI 
TaxTMI 
2024 (7) TMI 279
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....961 ("the Act" for short). 2. The assessee has taken the following grounds of appeal: 1. On the facts and in the circumstances of the case and in law, the learned Commissioner of Income-tax (Exemption) ("CIT (Exemption)") erred in rejecting the registration of the Appellant under section 12AB of the Act on the ground that trust is formed for the benefit of the members of the trust and not for the benefit of the general public. 2. On the facts and in the circumstances of the case and in law, the learned CIT (Exemption) erred in rejecting the registration of the Appellant under section 12AB of the Act stating that the trust is formed as an association to protect the business interest and welfare of its members and therefo....
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....lic or public at large. Whenever, there is a conflict of interest, then preference will be given to the interest of it's members only. The membership of the Association is limited to people dealing in real estate development, land development, lay-out planning, development of township, architecture, estate finance etc. The applicant trust does not include the members who represent the interest of customers as such. Therefore, looking into the instant fact, it cannot be said that the objects of the assessee-trust are for general public utility or for the benefit of the public at large or for the benefit for a section of the public, without any discrimination. Accordingly, with the above observations, the CIT(Exemption) rejected the applicati....
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....rade of transportation and not to allow the outsider or non-member to undertake any business activity within the precincts of Hansi Town Village. The Association charges fees from its members before the transportation on the basis of the distance involved. The membership and payment of fees are mandatory and the element of voluntary contribution is missing. The association is vigorously pursuing transportation business by receiving freight charges on behalf of its members. The we/fare activities adopted for the truck drivers, cleaners and mechanics of the truck owners are in the nature of staff welfare activities, as are common in other bus/ness organizations which cannot be termed for general public utility." 10. Therefore, as the....
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....s and perused the material on record. We observe that in the case of Jamiatul Banaat Tankaria [2024] 160 taxmann.com 358 (Ahmedabad - Trib.) , the ITAT held that where objects of assessee-trust were primarily charitable rather than favouring any specific religious community, CIT(E) was not justified in denying registration under Section 12A, by invoking Section 13(1)(b) as said provisions would be attracted only at time of assessment and not at time of grant of registration. In the case of Malik Hasmullah Islamic Educational and Welfare Society [2012] 24 taxmann.com 93/138 ITD 519 (Lucknow), the ITAT held that since provisions of Sections 11, 12 and 13 are intended for exercise of jurisdiction by an Assessing Officer in an assessment procee....
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....e of religious activities only. Similarly, assistance by the respondent-trust to the needy and poor for religious activities would not divest the trust of its altruist character. 41. Therefore, the objects of the trust exhibit the dual tenor of religious and charitable purposes and activities. Section 11 of the Act shelters such trust with composite objects to claim exemption from tax as a religious and charitable trust subject to provisions of Section 13. The activities of the trust under such objects would therefore be entitled to exemption accordingly. 42. 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 t....