TaxTMI 
TaxTMI 
2025 (1) TMI 383
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....and principles of Jainism (1) Jainism has seven spheres and it will act accordingly keeping the seven spheres before the Centre. 1.- Jain mandir: This organization will construct, assist in constructing Jin temples conforming to the tenets of Jainism as required and property administer and maintain existing-ancient Jin temples 2. Jain Pratima: Keeping Jain Muni's advice in center, the Jain idol will be created. 3. Shrut Gyan: Trust involved in activity of development and shrut gran for the purpose of awareness and spreading of Jain shrut gnan. Recreation of ancient new jain scriptures with ancient method. 4. Sadhu Sadhvi Valyavacha: Creation of Vaiyavacha Khatu for regular and special study of dixarthi, sadhu, sadhviji, Acharya Bhagwant, etc, of Jainism and collection of donations keeping in corpus for fulfillment of religious requirement for sadhu and sadhvis. 5. Sadharmik Bhakti: Program and planning for all Jain followers-Shravak and shravika for the purpose of creating internal sense of devotions of Jainism. Moreover, supporting in life living requirements and promoting them in society....
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....nism. According to the principles of Jainism, all necessary steps will be taken to inculcate Jain rites in the children. Will organize religious tours. Conducts camps, will work to inculcate rites in children and Adults. (9) This Trust will request for the chaturmas of Acharya Bhagwant and will make the do chaturmas according to the conveniency and will take benefit to gain knowledge from Acharya Bhagwant, Sadhus and sadhviji in paryushan and will endeavor to disseminate it. (10) To inculcate the religious spirit in the children, services of religious experts will be taken and the children studying in the school will be encouraged. Create and promote a library of religious books. The Trust shall act in accordance with the principles of Jainism and existing laws and shall raise necessary funds (donations) for the same and plan expenditure as per the provision in the Constitution as necessary and allocate the amount as per the provisions of the Constitution and principles of Jainism as necessary to the organization with the same purpose. (11) Notwithstanding anything not stated in this trust deed, the Acharya may take discretionary decisions and ac....
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....charitable trust. One restriction is where the trust or institution is created or established for the benefit of any particular religious community or caste [Section 13(1)(b)). In this context, while interpreting the scheme of these provisions, the Supreme Court has held that Section 13 has to be read in conjunction with the provisions of Sections 11 and 12 for determining the eligibility of a trust to claim exemption under the aforesaid provisions: "16. Therefore, under the scheme of the Act. Sections 11 and 12 are substantive provisions which provide for exemptions available to a religious or charitable trust. Income derived from property held by such public trust as well as voluntary contributions received by the said trust are the subject-matter of exemptions from the taxation under the Act. Sections 12A and 12AA detail the procedural requirements for making an application to claim exemption under Sections 11 or 12 by the assessee and the grant or rejection of such application by the Commissioner. A conjoint reading of Sections 11, 12, 12A and 12AA makes it clear that registration under Sections 12A and 12AA is a condition precedent for availing benefit under Sections ....
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....gious community or caste was entitled to exemption but under the Act of 1961, a charitable trust which is created for such benefit on or after the first day of April, 1962, would be disentitled to the exemption. In the present case the trust was created prior to 1st April, 1962, and, therefore, no question arises of its not being entitled to the exemption if other conditions were satisfied even though it was created for the benefit of the Rana caste of Ahmedabad," 12. In the circumstances, on the basis of the material which was produced by the assessee on the record of the Commissioner and before the Tribunal, we are of the view that no substantial question of law would arise in this appeal so as to warrant the Interference of this Court. However, while dismissing the appeal, we clarify that this would not affect the liberty which has been granted to the society to file a fresh application for registration." 9.2 It is also important to go through the provisions of sec 13(1)(b) of the Act is applicable in the present case which are reproduced as under: "13. (1) Nothing contained in section 11 or section 12 shall operate so as to exclude from the total inco....
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....hat it is a Composite trust and above referred object number 5 is restricted to benefit of a particular religious community or caste ie. Jain, which is a specific violation under clause (d) below explanation to section 12AB(4) of Income Tax Act, 1961 r.w.s 13(1)(b) of Income Tax Act, 1961. 11. In view of the above, the present application filed in Form No. 10AB u/s 12A(1)(ac)(iii) of the Act is rejected and provisional registration stands cancelled. 4. Aggrieved against the rejection order, assessee is in appeal before us raising the following Grounds of Appeal: "1. 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 rejecting application for registration u/s 12AB of the Act. 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 1....
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....he order passed by the Ld. CIT(E) does not require any interference. Therefore the appeal filed by the assessee is liable to be dismissed. 7. We have given our thoughtful consideration and perused the materials available on record. Section 12 to 12AB has undergone various changes from time to time. More particularly after 01.04.2021 the procedure for making reference to CIT(E) for cancellation of registration granted earlier has changed under section 12AB(4) of the Act. For ready reference the same is reproduced as under: "(4) Where registration or provisional registration of a trust or an institution has been granted under clause (a) or clause (b) or clause (c) of sub-section (1) or clause (b) of sub-section (1) of section 124A, as the case may be, and subsequently- (a) the Principal Commissioner of Commissioner has noticed occurrence of one or more specified violations during any previous year, or (b) the Principal Commissioner of Commissioner has received a reference from the Assessing Officer under the second proviso to sub-section (3) of section 143 for any previous year; or (c) such case has been selected in accordance with the risk mana....
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.... item (8) of sub-clause (i) of clause (b) of sub-section (1), and the order, direction or decree, by whatever name called, holding that such non-compliance has occurred has either not been disputed or has attained finality of (g) the application referred to in clause (ac) of sub-section (1) of section 12A is not complete or it contains false or incorrect information. " 7.1. It is undisputed fact that the Assessee Trust is created on 05- 01-2023 and the new provisions of section 12AB which is applicable from 01.04.2021. Perusal of the above provisions more particularly Clause (d) to Explanation of Section 12AB(4) of the Act clearly laid down that registration of the Trust or Institution established for charitable purpose created or established after the commencement of this Act, wherein the trust has applied any part of its income for the benefit of any particular religious community or caste can be cancelled. In this context perusal of the main objects of the Trust, which are reproduced in paragraph 2 of this order, makes it abundantly clear that all the objects enumerated therein are related to religious activities more particularly relating to "Jain Community" and to ....
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....nded law and therefore the order denying registration passed by Ld CIT[E] does not require any interference. 8. Next coming to the case laws relied by the Ld Counsel for the assessee namely Bayath Kutuchhi Dasha Oswal Jain Mahajan Trust (cited supra) wherein Hon'ble Jurisdictional High Court held that the Trust had large number of other objects for the benefit of General Public apart from objects for benefit of Religious Community, therefore held that the Tribunal was correct in allowing Registration to the Trust by observing as follows: "... 7. It can thus be seen that the Commissioner focused his attention to clause 4.2 of the objects of the trust to come to the conclusion that the same were for the benefit of a certain religious communities only, in the process ignoring various other objects, for e.g. as per clause 4.1, the trust would engage itself in activities relating to education by maintaining and running education centers, infant schools, primary secondary and high schools, colleges etc., to run hostels, training centers for creating awareness in the common people and to make the education available for the public. It would also engage in imparting training in....