TaxTMI 
TaxTMI 
2025 (6) TMI 2168
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....CIT(E) vide order dated 12-03-2024 for the Asst. Years 2022-23 to 2026-2027. However, exemption for Section 80G(5) was denied for the sole reason that clause (8) of the objects namely "to raise and run the service camps for the services to the pilgrims at the religious places" which is said to be for religious purposes. Therefore Ld. CIT(E) denied registration u/s.80G(5) of the Act and also cancelled the provisional approval granted to the assessee Trust. 3. Aggrieved against the same, the assessee is in appeal before us raising the following Grounds of Appeal: 1. The Lamed Commissioner of Income Tax (Exemptions), Ahmedabad, erred in law and on facts by rejecting the appellant's application under Section 800(5) of the Income Tax Act, 1961, without properly appreciating the overall charitable intent and nature of the Trust's objectives. 2. The Learned CIT(E) failed to consider that the trust's object of raising and runing service camps for pilgrims at religious places serves a broader public benefit and does not cater exclusively to any particular religion, thereby falling within the scope of charitable purposes under the Act 3. The rejectio....
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....gion, community or caste. Thus, the rejection order u/s.80G(5) of the Act, in our considered view is not correct proposition of law. Since, co-ordinate Bench of this Tribunal in the case of Gohilwad Vankar Samaj Seva Trust - Vs- CIT(E) in ITA No. 796/Ahd/2023 vide order dated 03-04-2025 held as follows: "... 4. We have heard rival submissions and perused the materials available on record. In the present case, the objects (extracted in Para 2 hereinabove) of the Trust namely 1 to 5 are relating to particular caste or community, however objects No. 6 & 7 are not relating to particular community but public at large. Thus, the objects enumerated are both religious to particular community and charitable to public at large in nature, which are mixed objects. 4.1. Therefore, the solitary question that arise for consideration is whether a Trust created before 01-04-2021 can be denied registration under section 12AB of the Act and by invoking the provisions of Section 13(1)(b) of the Act? This issue is no more res integra since the Jurisdictional High Court Judgment in the case of CIT(E) vs. Jamiatul Banaat Tankaria reported in [2024] 168 taxmann.com 35 held that the provi....
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.... held in the said decision that section 13(1)(b) comes into picture and is to be applied only when the eligibility of exemption of income in terms of provisions of section 11 is to be determined and not at the time of gram of registration. The Hon'ble Apex Court has categorically stated that the assessee has to first cross the hurdle of being eligible to exemption under section 11 by obtaining a certificate of registration under section 12A in this regard. Having crossed this hurdle, only then the provisions of section 13(1)(b) would come into picture, and a trust which is for the benefit of particular community, but it objects are otherwise charitable, is a valid trust for the purpose of grant of registration. 7. The Id CIT(Exemption), in the present case, we find, has only picked a portion of the order of tire Hon'ble Apex Court, wherein it has been held that the provisions of section 13(1)(b) of the Act would be applicable to a trust with mixed objects i.e. both charitable and religious. But he has failed to take note of the finding of the Hon'ble Apex Court that section 13(1)(b) would apply only at the time of grant of exemption under section 11, and not at....
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....al poor classes and to help in burial and funerals. 9. Cottage Industries, Rural Industries, Women Industries and to run each such activities to remove unemployment with the help of the government" 10. The Ld. CIT(Exemption) has referred to object at S. no 6 which is scholarship to Muslim students for their studies and to make provision so can get religious education for arriving at his finding that the objects are for the benefit of a particular religious community so as to invoke section 13(1)(b) of the Act. Further we find that the Ld. CIT(Exemption) notes that otherwise the objects are chartable in nature except for the afforested object. As per section 13(1)(b) exemption u/s 11 is dented if the trust is created or established for the benefit of a particular religious community. With majority of the objects found to be not catering to a particular community and no finding of the assessee actually catering for the benefit of a particular community, there is no case for invoking section 13(1)(b) of the Act in the present case. Therefore, we hold that even on merits the Ld.CIT(Exemption) was wrong in holding that section 13(1)(b) was applicable in the facts of th....