TaxTMI 
TaxTMI 
2024 (9) TMI 196
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.... 2. The grounds of appeal raised by the assessee are as follows: "1. That, the learned CIT(Exemption) has failed to grant proper opportunity of being heard and has wrongly rejected the application filed in form no.10AB for granting registration u/s 12A of the I.T. Act, 1961. 2. That, the findings of the learned CIT, Exemption are not justified in law as well as facts of the case and required to be deleted. 3. The appellant craves leave to add, alter, amend or delete any of the above grounds of appeal." 3. Succinct facts qua the issue are that assessee-trust filed an application in Form No.10AB, u/s 12A(1)(ac)(iii) of the Act, before the Ld. CIT(E). Therefore, the Ld. CIT(E) issued notice to the assessee-trust, to file the details and documents, to prove the genuineness of the activities of the trust. In response to the notice of the Ld. CIT(E), the assessee submitted its reply before the Ld. CIT(E). However, the Ld. CIT(E), after going through the objects of the assessee-trust, noted that assessee is a religious trust and as well as it is charitable trust. However, the nature of charitable activities, are restricted to the benefit of a particular community or caste, that is,....
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....t nurture and promote Indian culture and help in such activities. (13) All necessary activities can be done for the overall development of the village. (14) To carry out other activities incidental to the above purposes or to assist organizations or persons engaged in such activities." 6. Therefore, Ld. Counsel for the assessee, contended that objects of the trust are not restricted to a particular community i.e. 'Gandhvi and their sub caste Mandhuda, Shakhra, Alsuwa and Nukh'. However, the above objects of the assessee-trust are for the benefit of general public, therefore registration u/s 12A(1)(ac)(iii) should not be denied. The Learned Counsel also stated that Section 13(1)(b) of the Act, is applicable at the time of assessment and not at the time of granting registration to the trust, therefore, in assessee's case under consideration, section 13(1)(b) of the Act is not applicable, hence, registration under section 12A(1)(ac)(iii) of the Act, should not have been denied by the learned CIT (Exemption). 7. On the other hand, Learned Departmental Representative (Ld. CIT- DR) for the Revenue relied on the order of Ld. CIT(E) and submitted that assessee-trust is created for th....
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....slamic Educational and Welfare Society (2012) 24 taxmann.com 93/138 ITD 519 (Lucknow), the Coordinate Bench of ITAT held that since provisions of Sections 11, 12 and 13 are intended for exercise of jurisdiction by an assessing officer (AO) in an assessment proceedings, the Commissioner (Exemption) is not competent to invoke such provisions for purpose of declining registration u/s 12A(1)(ac)(iii) of the Act. Therefore, we note that Section 13(1)(b) of the Act can be invoked only at the time of assessment and not at the time of registration u/s 12A(1)(ac)(iii) of the Act. We also note that when the assessee-trust under consideration, has large number of other objects, which are for benefit of general public, (apart from a few objects in the nature of religious), therefore registration should not be denied to the assessee-trust u/s 12A (1)(ac)(iii)of the Act, for that reliance is placed on the judgment of the Hon'ble jurisdictional High Court of Gujarat in the case of CIT vs. Bayath Kutchhi Oswal Jain Mahajan Trust, (2016) 74 taxmann.com 199 (Guj) wherein it was held as follows: "3. The assessee challenged the order of Commissioner before the Tribunal. The Tribunal by the impugned ....
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....eated on Tue Aug 30 20:07:48 IST 2016 O/TAXAP/568/2016 ORDER 5. To provide guidance and education for Technical, Vocational and other crafts professions. 2. Social activity: 1. To arrange such collective function and to be helpful in such activities which increases relationship, brotherhood, family ness, unity, love amongst the members. 2. To establish, administer and maintain Guest Houses, Bhojanalaya, Service (vaiyavachh), centres and other buildings for the benefit of members of the society. 3. To construct or to arrange for the construction of residential complexes for the members of the Samaj and to provide loan/financial help subject to the provisions of the rules of the trust. 3. Medical: 1. To do all activities of medical help, to establish, administer and maintain Dispensary, Hospital, Laboratory and other medical treatment centres and arrange camps and seminars. 2. To help patients in medical treatment by providing medicines, financial assistance and all other helps. 3. To make publicity of medical education and given Scholarships. 4. Rural Development: 1. To provide employment to the villagers and to do all activities of poverty elimination. 2. To....