2026 (5) TMI 1072

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.... short 'the tribunal') in ITA No. 947/Ahd/2024, the following substantial question of law is proposed. "B.(i) Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT has erred in deciding the case on the issue of "benefit of a particular religious community or caste" whereas exemption was denied to the assessee trust on the basis that object Nos 1,4 & 5 of the assessee trust are not for the benefit of public at large and hence do not fall under the definition of charitable activities u/s 2(15) of the Income-tax Act, 1961?" 2. Learned Senior Standing Counsel Mr. Aman Mir appearing for the Revenue has submitted that the impugned order of the tribunal dated 18th November, 2024 allowing the appeal ....

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....ers of the "Shri Kalol Sthanakvasi Jain Mitra Mandal" through social, economic, and religious activities. The trust's objectives included promoting unity among members and providing assistance in their times of need. On 14.03.2024, the CIT(E) issued a show cause notice questioning the eligibility of the trust for registration under section 12A of the Act. The notice pointed out that the objectives of the trust appeared to be restricted to the welfare of its members rather than the public at large. The provisions of section 2(15) of the Income Tax Act, which defines "charitable purpose," include activities aimed at benefiting the public or a section of the public. Since the applicant's activities were limited to its members and did n....

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....he Income Tax Act. The applicant's case, which involved a trust formed for the benefit of a particular community (the Chauhan community), was not deemed to meet the charitable requirements of the current law. The CIT(E) also referred to a ruling from the Punjab & Haryana High Court in the case of CIT vs. Truck Operators Association reported in 9 taxmann.com 267, where it was held that an organization formed solely for the benefit of its members, even if engaged in some welfare activities, could not be classified as operating for the "general public utility." Given that the trust's activities were confined to the welfare of its members and did not serve a broader public interest, the CIT(E) held that the applicant trust did not meet ....