TaxTMI 
TaxTMI 
2026 (7) TMI 901
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....8 taxmann.com 35 (Gujarat) and in case of Commissioner of Income-tax (Exemption) v. Bhojaram Leuva Patel Seva Samaj Trust reported in (2025) 178 taxmann.com 572 (Gujarat) respectively, with the consent of the learned advocates, matter is taken up for final disposal. 4. The appeal is admitted for consideration of the following substantial questions of law: "1. Whether on facts and circumstances of case as well as law on the issue, Ld. Tribunal is right in holding that the appellant religious trust is not entitled registration due to specified violation for under clause (d) of Section 12AB (4) of the Act r.w.s. 13(1)(b) of the Act; 2. Whether on facts and circumstances of case as well as law on the issue, Ld. Tribunal is right in holding that the appellant is not entitled for registration even after accepting fact that all the objects enumerated in the objects clause are related to religious activities; 3. Whether in facts and circumstances of the case, the Tribunal has erred in law in not considering the provisions of section 12AB(1)(b) of the Act and by wrongly referring to and relying upon the provisions of section 12AB(4) read with Explanation clause....
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....anaat Tankaria (supra) and in case of Commissioner of Income-tax (Exemption) v. Bhojaram Leuva Patel Seva Samaj Trust (supra). 11. Learned advocate Mr. Vora submitted that Special Leave Petition (Civil) Diary No.38594/2025 arising out of the judgment and order passed by this Court in case of Commissioner of Income-tax Exemption v. Jamiatul Banaat Tankaria(supra), has been dismissed by the Hon'ble Supreme Court. 12. On the other hand, learned advocate Mr. Aman Mir for the respondent referred to and relied upon the impugned order of the Tribunal. 13. Having heard the learned advocates for the respective parties and considering the facts of the case, the questions of law framed are no more res integra in view of the decision of this Court in case of Commissioner of Income-tax Exemption v. Jamiatul Banaat Tankaria (supra) and in case of Commissioner of Income-tax (Exemption) v. Bhojaram Leuva Patel Seva Samaj Trust (supra). This Court in case of Commissioner of Income-tax Exemption v. Jamiatul Banaat Tankaria (supra) has held as under: "6. We have noticed that the ITAT has decided the issue as under: "5. We have gone through the decision of Hon'ble Apex Court....
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.... view is further supported by the decision of the Hon'ble jurisdictional High Court in the case of CIT Vs. Bayath Kutchhi Dasa Oswal Jain Mahajan Trust, (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, it was categorically held that the provisions of section 13 would be attracted only at the time of assessment and not at the time of grant of registration. The relevant finding of the Hon'ble High Court at para 8 of his order is as under: "8. Thus, very premise for the Commissioner to come to the conclusion that the objects of the trust were confined for the benefit of a religious community, is incorrect. Thereafter to suggest that the activities were earned out only for such purposes would be entering in the realm of granting exemptions in terms of section 13 of the Act, which would be the task of the Assessing Officer to be undertaken at the time of assessment on the basis of material that may be brought on record." 9. Even otherwise, we have gone through the objects of the trust, which were placed before us in the "statement of facts" which are as under: ....
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....e trust are not wholly for the benefit of a particular religious community, but are largely charitable in character for general public at large, and for the purpose of granting registration under section 12A, the provision of section 13(1)(b) cannot be referred to, which is to be applied only when granting the exemption to the trust. 12. The order of the ld. CIT(Exemption) denying grant of registration is accordingly set aside, and the Ld. CIT (Exemption) is directed to grant the assessee-trust registration under Section 12A of the Act. 13. In the result, the appeal of the assessee is allowed." 7. In view of the findings recorded by the Tribunal, supported by decision of this Court in case of CIT V/S Bhaya Kutchhi Dasa Oswal Jain Mahajan Trust (2017) 8 IRT-OL 493 (GUJ) that the objects of the trust are not wholly for the benefit of a particular religious community, but are largely charitable in character for general public at large and for the purpose of granting registration under 12A of the Act, the provision of section 13 (1) (b) cannot be referred to. Section 13(1)(b) is to be applied while granting exemption to the trust. In view of above finding, we....
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.... five years; (b) where the application is made under sub-clause (ii) or sub-clause (iii) or sub-clause (iv) or sub-clause (v) [or item (B) of sub-clause (vi)] of the said clause,- (i) call for such documents or information from the trust or institution or make such inquiries as he thinks necessary in order to satisfy himself about- (A) the genuineness of activities of the trust or institution; and (B) the compliance of such requirements of any other law for the time being in force by the trust or institution as are material for the purpose of achieving its objects; (ii) after satisfying himself about the objects of the trust or institution and the genuineness of its activities under item (A) and compliance of the requirements under item (B), of sub-clause (1),- (A) pass an order in writing registering the trust or institution for a period of five years; or [(B) if he is not so satisfied, pass an order in writing.- (I) in a case referred to in sub-clause (ii) or sub-clause (iii) or sub-clause (v) of clause (ac) of sub-section (1) of section 12A rejecting such application and also cancel-ling its registration; ....
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....s) Act, 2020 (38 of 2020)], within three months from the first day of April, 2021; (ii) where the trust or institution is registered under section 12AB for approved under sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (230) of section 10] and the period of the said registration [or approval, as the case may be,] is due to expire, at least six months prior to expiry of the said period; (iii) where the trust or institution has been provisionally registered under section 12AB [or provisionally approved under sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of clause (230) of section 10], at least six months prior to expiry of period of the provisional registration [or provisional approval, as the case may be,] or within six months of commencement of its activities, whichever is earlier, (iv) where registration of the trust or institution has become inoperative due to the first proviso to sub-section (7) of section 11, at least six months prior to the commencement of the assessment year from which the said registration is sought to be made operative; (v) where the trust or institution has ad....