2012 (6) TMI 875 - AT - Income Tax

Summary

Issues involved: Appeal against rejection of registration u/s 12AA(1)(b)(ii) of the IT Act.

Summary:
The appeal was filed by the assessee against the rejection of registration u/s 12AA(1)(b)(ii) of the IT Act by the DIT (Exm.), Ahmedabad. The assessee had applied for registration u/s 12A of the IT Act, providing information about the charitable activities of the Trust supporting Jain religion. The DIT (Exm.) rejected the registration application stating that the Trust was created for the benefit of a particular religious community, thus not eligible for registration u/s 12AA(1)(b)(ii) of the IT Act.

The assessee appealed, presenting details of the Trust's activities, expenditure incurred, and the charitable nature of the Trust. The counsel referred to similar cases where trusts with mixed objects were granted registration under Section 12AA. The Revenue contended that the Trust's objects were limited to a specific Jain sect and not for the public at large.

After considering the submissions and expenses details, it was observed that while some expenses were for a specific sect of the Jain community, others were for education of the poor, treatment of animals, and providing food for the poor. The Tribunal directed the DIT (Exm.) to verify the expenses and if found to be incurred for the public at large, grant registration u/s 12AA(1)(b)(ii) of the IT Act.

In conclusion, the appeal was allowed for statistical purposes, and the registration was granted u/s 12AA(1)(b)(ii) of the IT Act.