2026 (7) TMI 787

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....mptions) has cancelled the registration of the appellant-trust in exercise of the powers conferred under Section 12AB(4) of the Income Tax Act, 1961 ('Act' for short). 2. The appellant is a trust established and registered in the year 1910 with the object of upkeeping and maintenance of certain immoveable properties as set out in the Trust Deed. According to the appellant, it is one of the objects of the Trust to utilise the income from such properties for the benefit of the community including social, religious and customary needs. Further, according to the appellant, although the primary object is upkeeping and maintenance of properties by utilising income for the benefit of a particular community, the same is incidental to the Trust's....

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....pellant-trust to explain how the Trust can be said to have been established for charitable purpose and for the benefit of the public at large. In response thereto, a reply was filed by the appellant. The learned CIT (Exemptions) has ultimately found that the activities of the appellant are in violation of Section 2(15) of the Act, which come within the purview of "specified violations" as defined in Explanation to Section 12AB of the Act. In that view of the matter, the learned CIT (Exemptions) found that the appellant was neither established nor is functioning for charitable purposes and by the impugned order the registration came to be cancelled retrospectively from 24.09.2021, which order is subject matter of challenge in this appeal. ....

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....b) of Sub-section (1) to Section 13 of the Act, in particular, provides that nothing contained in Section 11 or 12 shall apply in the case of a trust for charitable purposes or a charitable institution created or established "after the commencement of this Act" if the trust or institution is created or established for the benefit of any particular religious community or caste. It can thus be seen that the prohibition from applying Section 11 of the Act to a trust/institution established for the benefit of any particular religious community or caste can arise in respect of such trusts/charitable institutions which have been established after the commencement of 1961 Act. It is not in dispute that the appellant-trust has been established much....