TaxTMI 
TaxTMI 
2026 (7) TMI 1650
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....iding 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 objects 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.? (ii) Whether on the facts and in the circumstances of the case and in law, Hon'ble Tribunal has erred in deciding the case while relying on judgement of Hon'ble High Court of Gujarat in the case of CIT Vs. Bayath Kutchhi Dasa Oswal Jain Mahajan Trust, (2016) 74 Taxmann.com 199 (Guj), which pertains to denial of registration u/s. 12A of the Income-tax Act, 1961 by invoking section 13(1)(b) of the Act on the issue of benefit to a particular religious community or caste wherein in the present case registration u/s. 12A was denied to the assessee on account of the activities being restricted to the benefit of members only?" 2 Brief facts of the case are that: 2.1 The respondent - Trust filed an application before the Commissioner of Income Tax, Exemption (for short 'C.I.T' Exemption) for grant of registration under Section 12AB of the Act. ....
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....were selected/picked up by the Ld.CIT(E) were only incidental Objects, which were only aimed at providing administrative support to the main Objects of the trust, which in our view, are charitable in nature. We also observe that all details of expenses incurred by the assessment were submitted before the Ld.CIT(E) and no specific finding has been given that the said expenses were not charitable in nature. We further observe that for the past three years, the Objects of the trust have not been challenged by the Tax Authorities and even on the principle of consistency, unless any new facts comes on record, registration cannot be denied to the assessee, on the basis of same set of facts. Accordingly, looking to the instant facts, we are of the considered view that the Ld.CIT(E) has erred in facts and law in denying granting of registration to the applicant - trust u/s.12AB of the Act. In the case of CIT (Exemption) Vs. Bayath Kutchhi Dasha Oswal Jain Mahajan Trust (supra), the Hon'ble Jurisdictional High Court has held that where apart from Objects which were for the benefit of religious community, the assessee - trust had large number of other objects which were for benefit of genera....
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....are in nature of services being rendered to members as are common in other welfare organizations, which could not be termed for general public utility and charitable purpose. Further, the Hon'ble Punjab & Haryana High Court in the case of CIT vs. Truck. Operators Association reported in 9 taxmann.com 267 decided the matter in favour of revenue and held as under. "9. On examination of the objects and the purpose of the Association in the present case, it emerges that the respondent-Association is union of Truck Operators constituted for facilitating its members to carry on the trade of transportation and not to allow the outsider or non-member to undertake any business activity within the precincts of Hansi Town/village. The Association charges fees from its members before the transportation on the basis of the distance involved. The membership and payment of fees are mandatory and the element of voluntary contribution is missing The association is vigorously pursuing transportation business by receiving freight charges on behalf of its members. The welfare activities adopted for the truck drivers, cleaners and mechanics of the truck owners are in the nature of staff we....
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....ts, and to prohibit the payment of any dividend to its members." "No objects of the Company shall be carried out without permission of the competent authority and no Objects of the company shall be carried on commercial basis." 5 None of the above main objects refers to religious activities as observed by the CIT (Exemption) and referred to by the learned advocate for the appellant. The various activities referred to in objects incidental or ancillary to the attainment of the main objects i.e. Object No.13 and 25 referred to by the learned advocate for the appellant also do not refer to any religious activity. It is also evident that the aforesaid objects are for the benefit of public at large. 6 This Court in the case of Bayath Kutchhi Dasha Oswal Jain Mahajan Trust(supra), after considering the objects of the said Trust has held as under: "7. It can thus be seen that the Commissioner focused his attention to clause 4.2 of the objects of the trust to come to the conclusion that the same were for the benefit of a certain religious communities only, in the process ignoring various other objects, for e.g. as per clause 4.1, the trust would engage itself in act....