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TMI Blog2017 (6) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... us community. 3. Only effective ground is against rejection of application u/s 12AA of the Act. Ld. Counsel for the assessee reiterated the submissions as made in the written brief, the submissions made by the Ld. Counsel are reproduced as under:- "The application made U/s 12AA for registration of 'Religious & Charitable Trust' made by the Assessee Trust to CCIT (Exemptions) on 13.04.2016. In response to said application, a letter dated 21.04.2016 was issued to the assessee requiring to produce certain documents on 12.05.2016, on which date all the documents were submitted and further it was asked to produce books of accounts for two years and copy of Land Purchase Deed was asked to be submitted. On appointed date both the required details were submitted and books were produced and was examined by the AO and no further query was ever made in this regard. In order in para 3, it was mentioned that complete details were not filed, but all the details desired were filed completely. Suddenly one day the assessee received the order U/s 12AA (1) (b) dated 04.10.2016 stating that the Trust is formed for benefit of Jain community and thus is violating provisions of section 13 (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner that the provisions of section 11 and 12 do not apply to exclude either whole or any part of the income of such trust or institution due to operation of sub-section (4) of section 12AA to refuse Registration U/s 12AA(1). Further, the Ld. CIT is not empowered to look into the issue whether the assessee has violated the provisions of section 13(1)(b) of the Act. As per provisions of section 13(1), it is amply clear that there are three limbs of said section. Section 13(1)(a) is for Trust formed for Private Religious purposes. Applicant do not fall under this clause as it is not meant for Private purposes. Section 13(1)(b) is for Trust for Charitable Purposes/Charitable Institution only. Applicant do not fall under this clause too as the Trust is formed as Religious and Charitable Trust and not purely a Charitable Trust. Section 13(1)(c) is for Trust for Charitable or Religious Purposes. This is the category of the Applicant. The Applicant Trust is working for maintenance of Jain Temple and upliftment of Jain community which makes them religious. The Trust is also working for general public charity as well which is also well defined in the objects of the Trust. This cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y to section 12AA which is applicable for registration. Section 13(1) refers to the previous year and registration is not for a particular previous year. If conditions of section 13(1)(b) are violated then exemption under section 11 shall not be given. The basic purpose is not to allow exemption of income if the trustees make some violation in some particular year but such violation will not affect the registration. Even religious trusts were entitled for registration. Therefore, CIT was directed to grant registration under section 12AA. Learned CIT (E) also tried to give colour of Jainism religion to the Trust by relating it with membership clause in para 7 at page 6 of the order. The membership clause is meant for management of the Trust only and it has nothing to do with beneficiaries who are the general public. So the trust is not created merely for the benefit of Jain samaj but is meant for public at large. 'Jainism' is the philosophy and preservation of symbol of such philosophy would definitely come into the embrace of the word 'Charitable'. Jainism is not a Religion but principle of living. It is submitted that in the object clauses wherever Jain is re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ther auspicious functions to members of a particular community i.e. specified individuals, it could not be regarded as society formed with a charitable purpose within meaning of section 2(15). In present case Trust is formed for both Religious as well as Charitable Purposes And all the Charitable Purposes are for General Public not for specific group of people or specified individuals. CASE LAWS RELIED UPON BY US Besides the case laws mentioned above, we also placed reliance on following recent judgments of Jaipur Tribunal by which the present case is covered: Shri Digambar Jain Mandir Godhaji, Nagariyon Ka Chowk walon ka Rasta, Johari Bazar, Jaipur Vs. CIT (Exemption), Jaipur ITA No. 742/JP/2015, Hon'ble Jaipur Bench of Tribunal in almost the similar facts had held that keeping the objects of the trust in view and respectfully following the judgment of the Hon'ble Supreme Court in the case of CIT v. Dawoodi Bohara Jamat, 364 ITR 31 (SC), the order of CIT (Exemption) is set aside and directed to grant registration to the assessee Trust. KundKundShikshan Kendra Trust v. CIT (Exemptions), Jaipur in ITA No. 905/JP/2016) order pronounced on 11 January, 2017 The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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