TaxTMI 
TaxTMI 
2026 (10) TMI 496
X X X X Extracts X X X X
X X X X Extracts X X X X
.... law and bad on facts. c. The ld.CIT(E) has erred in not appreciating the amendments being already made and submitted to the concerned authorities. 2. The appellant crave liberty to add, amend, alter, modify, delete any of the ground of appeal on or before its hearing before your honours. 3. The assessee filed an online application on 12.12.2024 in Form No. 10AB seeking regular registration under section 12A(1)(ac)(vi), item (B), of the Act. As recorded in the impugned order, the assessee was originally registered as a society with the Registrar of Societies and was subsequently registered under the Rajasthan Public Trust Act, 1959 on 18.10.2024, after revision of its earlier deed of constitution. The assessee claimed its character to be that of a charitable-cum-religious institution. 4. For examining the application, the CIT(E) issued a questionnaire dated 21.02.2025, requiring compliance by 10.03.2025. The assessee furnished its reply, which was examined by the CIT(E). Thereafter, a show-cause notice dated 27.05.2025 was issued, requiring compliance by 02.06.2025. Upon examination of the further reply, the CIT(E) noticed certain discrepancies and issued an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....364 ITR 31 (SC)], the CIT(E) rejected the application by the order dated 26.06.2025. 9. Before us, the learned Authorised Representative (AR) submitted that the denial of registration merely because some of the objects referred to the Jain religion was contrary to the scheme of the Act. It was contended that the CIT(E) had selected a few clauses without construing the deed as a whole. 10. The learned AR submitted that the assessee had drawn inspiration from the teachings and philosophy of Jainism. However, the activities contemplated under the deed included promotion of non-violence, compassion, ethical living, education, medical relief, animal welfare, environmental protection, humanitarian service and public welfare. These were universally accepted values and fell within the meaning of "charitable purpose" under section 2(15) of the Act. 11. It was submitted that the charitable activities of the assessee were not confined to the followers of Jainism and that the members of the general public, irrespective of their religion or community, were eligible to receive the benefits. According to the learned AR, preservation or dissemination of Jain philosophy and culture would n....
X X X X Extracts X X X X
X X X X Extracts X X X X
....#2375; सहायता पहुँचाना" 17. The learned DR submitted that this object expressly restricts the intended beneficiaries to helpless or needy persons belonging to the Jain community. He contended that this was not a mere reference to the source of inspiration or to Jain philosophy, but a substantive restriction governing the class of beneficiaries. 18. The learned DR accordingly submitted that the CIT(E) was justified in concluding that the assessee was constituted wholly or substantially for the benefit of a particular religious community and in rejecting the application under section 12AB of the Act. 19. We have considered the rival submissions and perused the material available on record. The short controversy before us is whether the CIT(E) was justified in rejecting the application for registration solely on the ground that some objects contained in the deed restricted the intended beneficiaries to the Jain community and consequently attracted section 13(1)(b) and clause (d) of the Explanation below section 12AB(4) of the Act. 20. The application was made under section 12A(1)(ac)(vi), i....
X X X X Extracts X X X X
X X X X Extracts X X X X
....2;ैन समाज केअसहायों को यथा शक्ति तन मन धन से सहायता पहुँचाना". The clause undoubtedly refers to needy persons belonging to the Jain community. This aspect cannot be ignored. Nevertheless, assistance to helpless and needy persons is, in its essential character, an object of relief to the poor. The restriction concerning the class of beneficiaries may have consequences under section 13(1)(b) when exemption is examined with reference to the application of income. It does not, by itself, convert the nature of the activity from charitable to non-charitable for the limited purpose of examining registration. 26. In Ahmedabad Rana Caste Association, the Hon'ble Supreme Court recognised that a purpose beneficial to an identifiable section of the public can retain its charitable character. The distinction between charitable character and the statutory restriction upon exemption under section 13(1)(b) must, there....