2015 (9) TMI 109

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..... t. Insofar as section 12AA of the Act is concerned, the Commissioner had to take a decision if the trust fulfilled necessary requirements of registration as provided under section 12A of the Act. As decided in Shantagauri Ramniklal Trust v. CIT [1998 (11) TMI 87 - GUJARAT High Court] while considering an application for registration of a trust, the Commissioner must also make a clear distinction between the requirement of registration and the requirement for claiming tax benefit. The latter question falls squarely to be considered by the Assessing Officer. Section 12A neither makes registration of trust as condition precedent for claiming benefit under sections 11 and 12 read with section 13, nor registration obviates enquiry into the c .....

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..... from the total income of such trust in case the trust is created or established for the benefit of any particular religious community or caste. The Commissioner after examining the objects of the trust, came to the conclusion that the trust was for the benefit of Leuva Patel Community and therefore, would be covered under section 13(1)(b) of the Act. 3. In appeal before the Tribunal, the Tribunal reversed the decision of the Commissioner. The Tribunal referred to several decisions including the decision of the Supreme Court in the case of Ahmedabad Rana Caste Association v. CIT [1971] 82 ITR 704. The Tribunal also examined the objects of the trust and observed as under: 7. From the above clauses of the Trust Deed, any adult person a .....

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..... ty or caste would be relevant when the income of the trust is being assessed and the question whether such income should be excluded from the total income of the trust in terms of section 11 of the Act. Insofar as section 12AA of the Act is concerned, the Commissioner had to take a decision if the trust fulfilled necessary requirements of registration as provided under section 12A of the Act. A Division Bench of this Court in the case of Shantagauri Ramniklal Trust v. CIT [1999] 239 ITR 528, in this context, observed as under : While considering an application for registration of a trust, the Commissioner must also make a clear distinction between the requirement of registration and the requirement for claiming tax benefit. The latter q .....

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