TaxTMI 
TaxTMI 
TaxTMI 
2025 (10) TMI 307
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....uestions of law arising out of order dated 30.4.2024 passed by the Income Tax Appellate Tribunal, "C" Bench, Ahmedabad (For short 'The Tribunal') in ITA No.667/Ahd/2023: "(i) Whether on the facts and in the circumstances of the case and law, Hon'ble Tribunal has erred while interpreting the decision of Hon'ble Supreme Court in the case of Dawoodi Bohara Jamat 43 Taxmann.com 243 in holding that section 13(1)(b) could not be applied for denying the grant of registration under section 12AB of Income Tax Act, 1961 despite the fact that the assessee trust is not created for the benefit of general public and many of its object clauses are for the benefit of a particular religious community? (ii) Whether on the fact and i....
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.... of the Trust. 4. In support of the submission, reliance was placed on the decision of this Court in case of CIT, Rajkot-II v. Leuva Patel Seva Samaj Trust, reported in 42 taxmann.com 181 (Gujarat), wherein it is held that the question as to whether trust is created or established for benefit of any particular religious community or caste would be relevant only when income of the trust is assessed in terms of Section 11, however, at the time of disposing of application of a trust seeking registration, Commissioner has to merely decide whether said trust has fulfilled necessary requirements of registration as provided under Section 12A of the Act or not. This Court further observed that "Leuva Patel Community" consists mainly of agricultu....
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....er must also make a clear distinction between the requirement of registration and the requirement for claiming tax benefit. The latter question falls squarely to be considered by the Assessing Officer. Section 12A neither makes registration of trust as condition precedent for claiming benefit under sections 11 and 12 read with section 13, nor registration obviates enquiry into the conditions envisaged under section 13 by the Assessing Officer before the tax benefit can be allowed. Mere filing of application for registration of the trust is enough to claim benefit of its income under sections 11 and 12 and jurisdiction to the Assessing Officer to enquire into that claim, which also includes question as to who are the beneficiaries of trust. ....
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....Hon'ble Supreme Court made the following observations: "40. Further, establishment of Madarsa or institutions to impart religious education to the masses would qualify as a charitable purpose qualifying under the head of education under the provisions of Section 2(15) of the Act. The institutions established to spread religious awareness by means of education though established to promote and further religious thought could not be restricted to religious purposes. The House of Lords in Barralet v. IR 54 TC 446, has observed that "the study and dissemination of ethical principles and the cultivation of rational religious sentiment" would fall in the category of educational purposes. The Madarsa as a Mohommedan institution of tea....
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....iming exemption under Section 11, it becomes relevant to test it on the anvil of Section 13. 10. In view of the above judicial precedents, looking into the facts of the instant case, we are of the considered view that the provisions of Section 13 of the Act can be invoked only at the time of assessment and not at the time of grant of registration under Section 12A of the Act. Our view is further supported by the decision of the Hon'ble jurisdictional High Court in the case of CIT (Exemptions) v. Bayath Kutchhi Dasha Oswal Jain Mahajan Trust [2016] 74 taxmann.com 199/243 Taxman 60 (Guj.)/[2017] 8 ITR-OL 494 (Guj.) wherein on the issue of denial of grant of registration u/s 12A of the Act by invoking Section 13(1)(b) of the Act, ....