TaxTMI 
TaxTMI 
2024 (11) TMI 226
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....es 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-charitable trust and section 13(1)(b) of the Act is applicable only to the charitable trust. 4. On the facts and circumstances of the case as well as on the subject, the learned Commissioner of Income Tax (Exemption) has erred in not considering that assessee-trust has inadvertently stated 'nature of activities' in Form 10AB as 'charitable' instead of 'religious-cum-charitable'. 5. 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 holding that assessee-trust has conducted 'specified violations' as per the explanation to section 12AB(4) of the Act without considering that objects of assessee trust are not limited to benefit of people following Jainism for a private group but is extended to all the people following Jainism. 6. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal." 3. The brief facts of the ....
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....sions, including those by the Hon'ble Supreme Court, which affirmed that trusts serving particular religious communities are ineligible for tax exemptions. Thus, based on the findings and applicable legal provisions, the application filed in Form 10AB under Section 12(1)(ac)(iii) was rejected, and the provisional registration of the trust was cancelled. 4. Before us, the Counsel for the assessee submitted that Ld. CIT(E) has grossly erred in facts in taking the view that the objectives of the trust are aimed only for benefit of a particular religious community, during the course of calamities. The Counsel for the assessee submitted that this is factually incorrect and the benefits of the trust are not aimed at any particular religious community as such. Further, the Counsel for the assessee drew our attention to letter dated 29.01.2024 submitted before Ld. CIT(E) vide which it was submitted that the applicant trust carries out activities for the spiritual benefit of all mankind without discrimination of caste. The applicant trust also produced various documentary evidences in the form of photographs before CIT(E) to demonstrate what the activities of the trust are not aimed fo....
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.....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 proceedings, Commissioner is not competent to invoke such provisions for purpose of declining registration under Section 12AA. In the case of St. Joseph Academy v. DIT (Exemption) [2014] 50 taxmann.com 216/153 ITD 669 (Hyderabad - Trib.), the ITAT held that provisions of Section 13 can be invoked by Assessing Officer while framing assessment and not by Commissioner while considering application for registration under Section 12AA. 9. In view of the above judicial precedents, looking into the facts of the instant case, we are of the considered view that the provisions of Section 13 of the Act can be invoked only at the time of assessment and not at the time of grant of registration under Section 12A of the Act. Our view is further supported by the decision of the Hon'ble jurisdictional High Court in the case of CIT (Exemptions) v. Bayath Kutchhi Dasha Oswal Jain Mahajan Trust [2016] 74 taxmann.com 199/243 Taxman 60 (Gujarat)/[2017] 8 ITR-OL 494 (Guj.) wherein on the issue of denial of grant of registrati....
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.... the case of the assessee-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 that assessee-trust filed application for registration of trust u/s 12AB of the Act in Form- 10AB. The CIT(E) rejected the application of the assessee on the ground that objects of the assessee-trust are restricted to the benefit of a particular religious community or caste i.e., Leuva Patel Community. He invoked the provision of 13(1)(b) of the Act and rejected the registration of application. After referring to the....