TaxTMI 
TaxTMI 
2026 (7) TMI 213
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....nt-Revenue has proposed the following substantial questions of law, arising out of the order dated 26th November, 2024 passed by the Income Tax Appellate Tribunal, 'B' Bench Ahmedabad (for short 'the Tribunal') in ITA No. 844 of 2023 : "(i) Whether on the facts and in circumstances of the case, the Hon'ble Tribunal is justified in holding that one-time fund raising programme carried out by the assessee trust was not an organised activity in the nature of business ignoring the fact that a major portion of the funds so raised were spent by the assessee for developing software for lottery process. (ii) Whether on the facts and in the circumstances of the case and in law, the Hon'ble ITAT has erred in ignoring the amendmen....
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....table trust, which came into existence on 24th September, 2020, and is registered under the provisions of the Bombay Public Trust Act, 1950 with the Charity Commissioner, Ahmedabad. 3.2. The Commissioner of Income Tax (Exemption) (for short 'CIT(E)') by order dated 27th May, 2021 granted the provisional registration to the respondent-assessee for the Assessment Years 2020-21 to 2023-24. 3.3. The respondent-assessee filed Form No.10AB on 5th April, 2023 for final registration under Section 12AB of the Act. However, the said application in Form 10AB was rejected by the CIT(E) vide order dated 29th August, 2023 on the ground that the fund raising programmes carried out by the assessee-trust by way of coupon sales and mega lucky draw were....
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.... under Section 12AB of the Act is to be granted or not, as provisions of Section 13(1)(b) of the Act would be applicable only at the time of assessment and not at the time of registration. The Tribunal referred to and relied upon the decision in case of Malik Hasmullah Islamic Educational and Welfare Society Versus Commissioner of Income Tax reported in [2012] 24 taxmann.com 93/138 ITD 519 (Lucknow) as well as the decision of this Court in case of CIT (Exemption) Versus Bayath Kutchhi Dasha Oswal Jain Mahajan Trust reported in (2016) 74 taxmann.com 199 (Gujarat), wherein, on the issue of denial of grant of registration under Section 12A of the Act, by invoking Section 13(1)(b) of the Act, was held to be not legal and it was categorically he....
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....hat one or more specified violations have taken place; (iii) pass an order in writing, refusing to cancel the registration of such trust or institution, if he is not satisfied about the occurrence of one or more specified violations; (iv) forward a copy of the order under clause (ii) or clause (iii), as the case may be, to the Assessing Officer and such trust or institution." 5. This Court in case of United Way of Baroda (Supra), while considering the issue on merits as to whether conducting of Garba activity would amount to business activity or not, has held as under : "13. Prior to the introduction of the Proviso to Section 2(15) of the Act, there was no dispute that the assessee herein was established for ch....
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....ly for the purposes of the objects of the assessee. As held in many pronouncements, the expression "trade", "commerce' and "business" as occurring in the first Proviso to Section 2(15) of the Act must be read in the context of the intent and purport of section 2(15) of the Act and cannot be interpreted to mean any activity which is carried on in an organized manner. The purpose and the dominant object for which an institution carries on its activities is material to determine whether the same is business or not. The object of introducing the first proviso is to exclude the organizations which are carrying on regular business from the scope of "charitable purpose". An activity would be considered 'business' if it is undertaken wi....
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.... Leuva Patel Seva Samaj Trust [2024] 162 taxmann.com 270 (Ahmedabad - Trib.), the ITAT held that provisions of section 13(1)(b) can be invoked only at the time of assessment and not at the time of grant of registration under section 12A. Again, in the case of Jamiatul Banaat Tankaria [2024] 160 taxmann.com 358 (Ahmedabad-Trib.), the ITAT held that where objects of assessee trust were primarily charitable rather than favouring any specific religious community, Ld. CIT(E) was not justified in denying registration under Section 12A, by invoking Section 13(1)(b) as said provision would be attracted only at the time of assessment and not at the time of grant of registration. In the case of Malik Hasmullah Islamic Educational and Welfare Society,....