TaxTMI 
TaxTMI 
2024 (12) TMI 1599
X X X X Extracts X X X X
X X X X Extracts X X X X
....on so made and refusal to grant Registration/approval u/s. 12AB of the Act is contrary to the provisions of law and facts of the case. The same may kindly be quashed. 2.2 The Ld. CIT(E) erred in law as well as on the facts of the case in rejecting the application for grant Registration/approval u/s. 12AB of the Act on the alleged reasons that Society is (i) Not registered under RPT Act, 1959, ii) Society meant for benefit of Porwal Samaj, iii) Society is running the Business Activity, iv) Application of income not for the object of the trust and v) genuineness of Activities, which are wrong and incorrect looking to the material and details available on record and not considered the same in their true perspective and sense. Hence the rejection so made and refusal to grant Registration/approval u/s. 12AB of the Act is contrary to the provision of the law and facts of the case. The same may kindly be quashed. 3. That the impugned order so passed was in the contravention of the law prevalent at the relevant point of time and also on fact and hence may kindly be quashed. The ld. CIT (E) be directed to grant Registration/approval from the date of application. 4....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... clear that registration under sections 12A and 12AA is a condition precedent for availing benefit under sections 11and 12. Unless an institution is registered under the aforesaid provisions, it cannot claim the benefit of sections 11 and 12. Section 13 enlists the circumstances wherein the exemption would not be available to a religious or charitable trust otherwise falling under section 11 or 12 and, therefore, requires to be read in conjunction with the provisions of sections 11 and 12 towards determination of eligibility of a trust to claim exemption under the aforesaid provisions. [Para 16] Determination of nature of trust as wholly religious or wholly charitable or both charitable and religious under the Act is not a question of fact. It is a question which requires examination of legal effects of the proven facts and documents, that is, the legal implication of the objects of the respondent-trust as contained in the trust deed. It is only the objects of a trust as declared in the trust deed which would govern its right of exemption under section 11 or 12. It is the analysis of these objects in the backdrop of fiscal jurisprudence which would illuminate the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....would cease to be charitable even when public welfare is intended to be served. [Para 30] In certain cases, the activities of the trust may contain elements of both: religious and charitable and thus, both the purposes may be over lapping. More so when the religious activity carried on by a particular section of people would be a charitable activity for or towards other members of the community and also public at large. For example, the practice of optional charity in the form of Khairat or Sadaquah under Mohammadan Law would be covered under both charitable as well as religious purpose. Further, while providing food and fodder to animals especially cow is religious activity for Hindus, it would be charitable in respect to non-Hindus as well. [Para 36] Unquestionably, objects which provide for the activities completely religious in nature and restricted to the specific community of the respondent-trust are objects with religious purpose only. However, in respect to the other objects, the fact that the said objects trace their source to the Holy Quran and resolve to abide by the path of godliness shown by Allah would not be sufficient to conclude that the entire pu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....f section 13(1)(b). [Para 43] In the instant case, the Tribunal has found on facts after analysing the objects of the trust that the respondent trust is a public religious trust and its objects are solely religious in nature and being of the opinion that section 13(1)(b) is solely meant for charitable trust for particular community, negated the possibility of applicability of section 13(1)(b) at the outset. The High Court has also confirmed the aforesaid view in appeal and observed that section 13(1)(b) would only be applicable in case of income of the trust for charitable purpose established for benefit of a particular religious community. The said view may not be the correct interpretation of the provision. [Para 44] 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 intended to be excluded from being eligible for exemption under section 11 is a trust for charitable purpose which....