TaxTMI 
TaxTMI 
TaxTMI 
2025 (9) TMI 608
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....d 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. Counsel filed a written submissions in support of its grounds of appeal with various case laws namely: (i) CI....
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....lasses, 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 The trust to work for providing the information about the activities being run by the government about the self- employment and to make the people of the society aware by providing such inf....
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....rence 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 follows: "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 Ex....
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....e 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 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 att....
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....mmunity 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 community, however objects No. 6 & 7 are not relating to particular community but public at large. Thus the objects enumerated are both religious to particular community and charitable to public at large in nature, which are mixed objects. 4.1. Therefore the solitary question that arise for consideration is whethe....
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....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 come into picture, and a trust which is for the benefit of particular community, but it objects are otherwise charitable, is a valid trust for the purpose of grant of registration. 7. The Id CIT(Exemption), in the present case, we find, has only picked a portion of the order of tire Hon'ble Apex Court, wherein it has been held that t....
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.... 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. Further we find that the Ld. CIT(Exemption) notes that otherwise the objects are chartable in nature except for the aforestated object. As per section 13(1)(b) exemption u/s 11 is dented if the trust is created or established for the benefit of a particular religious community. With majority of the objects found to be not catering to a particular community and no finding of the assessee actually catering for the benefit of a particular community....