2024 (10) TMI 712

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.... Tax Appellate Tribunal, "A" Bench, Ahmedabad (ITAT) in ITA No.58/Ahd/2023, proposing the following substantial questions of law. (i) Whether on the facts and in the circumstances of the case and law, Hon'ble Tribunal has correctly interpreted the decision of Hon'ble Supreme Court in the case of Dawoodi Bohara Jamat 43 Taxmann.com 243 in holding that section 13 (1) (b) could not be applied for denying the grant of registration under section 12AB of Income Tax Act, 1961 despite the fact that the assessee trust is not created for the benefit of general public but one of its object clause is for the benefit of a particular religious community? (ii) Whether on the fact and in the circumstances of the case and law, Hon'ble Tribunal has erre....

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....AT has erred by misinterpreting the decision of Hon'ble Supreme Court in Dawoodi Bohara Jamaat [2014]43 Taxman.com243 and has wrongly noted that the Hon'ble Supreme Court has held that Section 13 (1) (b) would apply only at the time of grant of exemption u/s 11 and not at the time of grant of registration u/s 12A of the Act. Further, the ITAT has not considered the fact that decision of Hon'ble Supreme Court in Dawoodi Bohara Jammat (supra) was rendered in case of a composite trust/institution i.e. a trust which was both charitable as well as religious trust. 6. We have noticed that the ITAT has decided the issue as under: "5. We have gone through the decision of Hon'ble Apex Court in the case of Dawoodi Bohara Jamat (supra) and we find ....

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....ection 12A in this regard. Having crossed this hurdle, only then the provisions of section 13 (1) (b) would come into picture, and a trust which is for the benefit of particular community, but it objects are otherwise charitable, is a valid trust for the purpose of grant of registration. 7. The ld. CIT (Exemption), in the present case, we find, has only picked a portion of the order of tire Hon'ble Apex Court, wherein it has been held that the provisions of section 13 (1) (b) of the Act would be applicable to a trust with mixed objects i.e. both charitable and religious. But he has failed to take note of the finding of the Hon'ble Apex Court that section 13 (1) (b) would apply only at the time of grant of exemption under section ....

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....ial training. 2. To do welfare activities for upbringing and development of each section of the society. 3. To establish Children Nurseries, Primary schools, High schools, Colleges, Madressa, Masjid boarding houses, Hospitals, Dispensaries etc. And for that accommodating fixed assets and to manage the same thereby. And to do every land of charitable activities. 4. To make necessary arrangements for accommodation of poor people. 5. To help the Blind, Weak, Feverish people and those poor people who cannot run their lives. 6. To give Scholarships to Muslims Students for their studies and do make provisions so as they can get the religious education, 7. To give medical assistance in the events of requirement irrespective of ca....