2024 (8) TMI 534

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....the following grounds of appeal:- "1. Learned CIT(E) has erred in law and on the facts of the case in rejection the provisional registration of the Appellant u/s. 12AB of the Act. 2. Your appellant reserves the right to add, delete, modify or revise any ground of appeal." 3. The brief facts of the case are that the assessee was granted provisional registration of trust on 24.01.2022. Thereafter, the assessee/applicant filed application for grant of final registration in form 10AB on 18.03.2023 under section 12A of the Act. On perusal of the application filed by the assessee, the CIT observed that the objectives/objects of the applicant trust are for the benefit of a particular community or caste i.e. Khoja Shia Ishna As....

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.... further held that what is intended to be excluded from being eligible for exemption u/s 11 is a trust for charitable purposes which is established for the benefit of any particular religious community or caste. In the present case, it is not the plea/argument of the applicant/assessee that the applicant/assessee's object/objects, which is/are otherwise charitable in nature is/are not restricted for benefit of any particular religious community or caste and therefore, the laws laid down in the cases on which the applicant/assessee has placed reliance are not applicable to the facts of the instant case. 14. From the above referred discussion and objects of the applicant/assessee it is evident that it is not a religious trust, bu....

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....sessment of such trust, and section 13(1)(b) of the Act cannot be invoked for the purpose of denial of grant of registration under section 12A of the Act. 6. In response, the Ld. DR placed reliance on the observations made by CIT in the order denying the grant of registration under section 12A of the Act to the assessee/applicant trust. 7. We have heard the rival contentions and perused the material on record. In the case of Bhojalram Leuva Patel Seva Samaj Trust 162 taxmann.com 270 (Ahmedabad - Trib.), the ITAT held that provisions of section 13(1)(b) can be invoked only at the time of assessment and not at the time of grant of registration under section 12A. 8. Again, in the case of In the case of Jamiatul Banaat Tankaria 160 tax....

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....Taxman 60 (Gujarat)/[2017] 8 ITR-OL 494 (Guj.) wherein on the issue of denial of grant of registration u/s 12A of the Act by invoking Section 13(1)(b) of the Act, it was categorically held that the provisions of Section 13 would be attracted only at the time of assessment and not at the time of grant of registration. The relevant finding of the Hon'ble High Court at para 8 of his order is as under: "8. Thus, very premise for the Commissioner to come to the conclusion that the objects of the trust were confined for the benefit of a religious community, is incorrect. Thereafter to suggest that the activities were carried out only for such purposes would be entering in the realm of granting exemptions in terms of Section 13 of the....