TaxTMI 
TaxTMI 
2024 (9) TMI 197
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.... The grounds raised by the appellant are as under: - "1. On the facts and circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has erred in rejecting application for registration u/s 12AB of Act to the assessee trust. 2. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has erred in cancelling the provisional registration of the assessee-trust. 3. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has erred in invoking the provisions of Section 13(1)(b) of the Act without considering that assessee-trust is religious-cum-charitab....
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.... In view of the above referred discussion and objects, the CIT(E) observed that the assessee-trust is a composite trust. However, clause-(F) of the objects, i.e., "to set up or to be helpful to educational institutions for that sort of upliftment of the group of people following Jainism" is charitable in nature which is restricted to the benefit of a particular religious community or caste being "Jain community" and, therefore, as per law laid down by the Hon'ble Apex Court in the cases of CIT vs. Palghat Shadi Mahal Trust 120 Taxman. 889 (SC) and CIT vs. Dawoodi Bohara Jamat 43 taxmann.com 243 (SC), the provisions of Sec.13(1)(b) would be applicable and accordingly, the applicant/assessee would not be eligible for exemption u/s 11 of the....
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..... 5. We have heard the rival submissions and perused the materials available on record. We have also deliberated on the decisions relied upon by both parties. Before deciding the issue, it would be proper to reproduce the objects of the assessee-trust, which is the basis for the CIT(E) to reject the application for registration and cancellation of the provisional registration. The objects of the assessee-trust is at page-15 of the paper book, which are as under: "4) OBJECDTIVES OF THE TRUST: A. To construct new Jain temples, Jain monasteries, caravan saris or to administer them so that the Jain saints, holy men and women and man and woman practicing penance may stay there comfortably and worship the God. More over to renovate old Jain ....
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....ssee-trust. The recent decision of the ITAT Ahmedabad in case of Bhojalram Leuva Patel Seva Samaj Trust (supra) dated 30.04.2024 is directly on the subject issue. After referring to various decisions including the decisions of Hon'ble Supreme Court in case of Palghat Shadi Mahal Trust (supra) and Dawoodi Bohara Jamat (supra), the Tribunal held that where CIT(E) rejected application of assessee-trust, citing Section 13(1)(b) due to trust's objectives being limited to benefiting a specific religious community, since provisions of section 13 can be invoked only at time of assessment and not at time of grant of registration u/s 12A, therefore, matter would be restored to file of CIT(E), for de novo consideration. The facts of the above case are....
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....registration. The relevant finding of the Hon'ble High Curt 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 Ac, which would be the task of the Assessing Office to be undertaken at the time of assessment on the basis of material that may be brought on record." 11. In the result, in view of the above observations, the matter is restored to the file of CIT(Exemptions), for de novo consideration, after giving due opportuni....