TaxTMI 
TaxTMI 
2025 (9) TMI 608
X X X X Extracts X X X X
X X X X Extracts X X X X
....meant for the benefit of members/families of Sanand Jamaliya Patidar Samaj/Community and not for the benefit of Public at Large. Hence a show cause notice dated 18-09- 2024 was issued to the assessee trust, why not to deny registration for the specified violation of clause (d) to explanation to section 12AB(4) of the Act. The assessee vide letter dated 20-09-2024 sought for adjournment. Since granting of registration in the case of the assessee was time barring on 30-09-2024, the adjournment request was denied and on based on material available on record, Ld.CIT(E) denied registration to the Trust since the objects of the Trust are meant for a particular community. 3. Aggrieved against the same, assessee is in appeal before us raising the following Grounds of Appeal: 1. Whether, on facts and in circumstances of the case and in law, Ld. CIT(Exemption) has erred in rejecting the application for 'final registration of trust u/s 12AB of the Act'? 2. Whether, on facts and in circumstances of the case and in law, Ld. CIT(Exemption) has erred in concluding that 'specified violation occurs under clause (d) of explanation to section 12AB(4) of the Act'? 4. Ld. Counse....
X X X X Extracts X X X X
X X X X Extracts X X X X
...., Anganwadis, Primary Schools, Secondary Schools, Colleges, Arts, Commerce Colleges, Engineering and Science Colleges, Education Classes, PTCS. Collages, night teaching classes, teaching temples, boys', girls' hostels, ashrams, schools for the blind with the aim of propagating and spreading high moral rites and knowledge to everyone. 6 To establish and construct food courts in public Interest, to provide food to poor and middle-class people and to arrange for tea-breakfasts, meals, hot water facility for pedestrians pilgrims of all religion and to carry out all related activities for Sanghas, to conduct, maintain, and run the drinking water stands and the Dharamshalas. 7 To organize knowledge camps, lectures, seminars, and gatherings and to organize programs for propagation and dissemination of knowledge. 8 To organize programs for public health and organize necessary camps for the same. 9 To give shelter to children who became orphan on account of natural or man-made calamities and to make good efforts for their economic, social, and family development of blind, disabled, deaf, dumb, lame, mentally retarded and physically handicapped people 10 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... is specific violation as defined in explanation to Section 12AB(4) of the Act. Section 12 to Section 12AB has undergone various amendments from time to time. More particularly after 01-04-2021, the procedure for making reference to Ld. CIT(E) for cancellation of registration granted earlier has changed u/s. 12AB(4) of the Act. Perusal of the above provisions 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. 6.2. In the present case, perusal of the object no. 1 & 2 of the Trust makes it clear that it is meant for a particular community namely Sanand Jamaliya Patidar Samaj/Community which is specific violation under clause (c) & (d) to explanation to section 12AB(4) of the Act. This issue was considered Co-ordinate Bench of this Tribunal in ITA No. 1571/Ahd/2024 vide order dated 03-01-2025 in the case of Shri Soudharma Brihad Tapogachchiya Tristutik Jain Sangha Samarpanam Vs. CIT(E) reported in 170 taxmann.com 590 wherein it is held as follow....
X X X X Extracts X X X X
X X X X Extracts X X X X
....isions, it cannot claim the benefit of Sections 11 and 12. Section 13[1][b] prescribes the circumstances wherein the exemption would not be available to a Religious or Charitable trust otherwise falling under Section 11 or 12. Therefore, it 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, while granting registration. 7.4. Further Ld CIT [E] has considered the provisions of sec 13(1)(b) of the Act which is applicable only in a case of Charitable Trust or Institution created or established after commencement of this Act and only for the benefit of any particular religious community or caste namely "Jains" and thereby denied the registration, which in our considered view is well within the provision of amended 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 obje....
X X X X Extracts X X X X
X X X X Extracts X X X X
....udgment will not be applicable to the facts of the present case. Similar is the cases relating to the Co-ordinate Bench decisions relied upon by the Assessee Counsel which are not applicable to the facts of the present case. The Assessee Trust being purely a religious activities of particular Community is not entitled for registration as a specified violation under Explanation [d] of Section 12AB(4) of the Act. 10. In the result, the appeal filed by the Assessee is devoid of merits and the same is hereby dismissed." 6.3. Very same Co-ordinate Bench of this Tribunal in the case of Gohilwad Vankar Samaj Seva Trust Vs. CIT(E) in ITA No. 796/Ahd/2023 vide order dated 03-04-2025 reported in 173 taxmann.com 263 considered registration u/s. 12AB of the Act to a Trust created before 01-04-2021 (i.e. old Trust) and held that Ld. CIT(E) has no power to invoke the provisions of Section 13(1)(b) of the Act while granting registration by observing as follows: "4. We have heard rival submissions and perused the materials available on record. In the present case, the objects (extracted in Para 2 hereinabove) of the Trust namely 1 to 5 are relating to particular caste or commu....
X X X X Extracts X X X X
X X X X Extracts X X X X
....under Section 12A of the Act, and the provisions of Section 13(1)(b) of the Act would be attracted only at the time of granting exemption to the assessee, wherein if it was found that the must existed for the benefit of a particular religious community only, the exemption under section 11 was to be denied to the assessee. The Hon'ble Apex Court, therefore, categorically found that as per the provisions of law, section 13(1)(b) could not be applied for denying the grant of registration, but was to be applied only while granting denying exemption to the assessee. 6. It is pertinent to note that the Hon'ble Apex Court has categorically held in the said decision that section 13(1)(b) comes into picture and is to be applied only when the eligibility of exemption of income in terms of provisions of section 11 is to be determined and not at the time of gram of registration. The Hon'ble Apex Court has categorically stated that the assessee has to first cross the hurdle of being eligible to exemption under section 11 by obtaining a certificate of registration under section 12A in this regard. Having crossed this hurdle, only then the provisions of section 13(1)(b) would....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ouses, 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 caste and creed and to organise medical camps. 8. To help the post, unhappy, orphan and economical poor classes and to help in burial and funerals. 9. Cottage Industries, Rural Industries, Women Industries and to run each such activities to remove unemployment with the help of the government" 10. The Ld. CIT(Exemption) has referred to object at S. no 6 which is scholarship to Muslim students for their studies and to make provision so can get religious education for arriving at his finding that the objects are for the benefit of a particular religious community so as to invoke section 13(1)(b) of the Act. Furt....