2024 (12) TMI 1532

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....r referred to as 'the Act'). 2. The brief facts of the case are that the assessee had filed an application seeking registration of the Trust under Section 12AB of the Act in Form No. 10AB under Rule 17A of the I.T. Rules, 1962 on 23.08.2023. The ld. CIT (Exemption), after verifying the documents submitted by the assessee, found that objects of the assessee-trust were for the benefit of particular religious community. He accordingly, held that the assessee was not entitled to exemption in terms of Section 13(1)(b) of the Act, and therefore for this reason, he denied the grant of registration to the assessee trust under section u/s 12A of the Act. 3. Aggrieved with the order of the ld. CIT(Exemption) rejecting the application of the as....

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....uled Tribes (ST) Scheduled Castes (SC), and Other Backward Classes (OBC). Hence, the trust does not fall in the exception laid down under the provisions of explanation (2) to clause (b) of sub-section (1) of section 13 of the Act. 7.4 The objects of trust are Charitable in nature and the same are found to be for the benefit of Particular religious community i.e. Hindu. Further on verification of the application for registration or approval in Form 10AB, the applicant has reported at point number 3 i.e. Nature of activities as "Religious cum Charitable and as per the Registration Certificate issued by the Deputy Charity Commissioner, Bhavnagar trust is registered on 05.12.1962. 8. For the purpose of ready reference provision of sec 13(....

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.... entitled for exemption u/s 11 of the Act. Therefore, in this case there is clear violation of section 13(1)(b)) of Income Tax Act, 1961. 9. Hon'ble Supreme Court in the case of CIT vs Dawoodi Bohara Jamat, reported in 43 taxmann.com 243, wherein the Hon'ble Apex Court held that the provision of sec 13(1)(b) of the Act is applicable even to a composite trust/institution and held as under: 45. From the phraseology in clause (b) of section 13(1), it could be inferred that the Legislature intended to include only the trusts established for charitable purposes. That however does not mean that if a trust is a composite one, that is one for both religious and charitable purposes, then it would not be covered by clause (b). What is i....