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TMI Blog2017 (9) TMI 1621X X X X Extracts X X X X X X X X Extracts X X X X ..... same. However, the Tribunal has allowed the appeal. 4. Counsel for the appellant contended that the view taken by the Tribunal is contrary to law and while rejecting the registration, the CIT(A) has given reasons which reads as under:- "All these students belong to one particular community i.e. Jain. This is against the provisions of law. As per intention of the legislature charitable institutions should not work only for a particular religious community or caste. Provisions of section 13(1)(b) are as under:- 13(1). Nothing contained in section 11 [or section 12] shall operate so as to exclude from the total income of the previous year of the person in receipt thereof. (a) Any part of the income from the property held under a trust for private religious purposes which does not ensure for the benefit of the public. b) In the case of a trust for charitable purpose or a charitable institution created or established after the commencement of this Act, any income thereof if the trust or institution is created or established for the benefit of any particular religious community or caste." Explanation 2-A trust or institution created or established for the benefit of Scheduled ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . It would also engage in imparting training in computers. As per clause 4.3, the trust would engage in doing all activities for medical help and to establish and administer dispensaries, hospitals and laboratories etc. It would also help the patients by supplying medicines and financial assistance. Likewise in clause 4.4 the trust could engage in rural development schemes. As per clause 4.5, the trust would engage in literary and cultural activities by making efforts for the development and protection of Indian culture. Clause 4.6 which pertains to other included activities such as running cow shelters, to provide food, cloth and financial help for economically weaker persons, to help during natural or other calamities, to serve humans and animals etc. 8. Thus, very premise for the Commissioner to come to the conclusion that the objects of the trust were confined for the benefit of a religious community, is incorrect. Thereafter to suggest that the activities were carried out only for such purposes would be entering in the realm of granting exemptions in terms of Section 13 of the Act, which would be the task of the Assessing Officer to be undertaken at the time of assessment on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the present case arising out of the question of registration of the Trust and not of assessment. 6.4. He has relied upon the decision of Madras High Court in case of Commissioner of Income Tax, Copimbatore vs. R.K. Deivendra Nadar Trust reported in [2014] 52 taxmann.com 168 (Madras) wherein it has been held as under:- "8.The apprehension of the CIT whether the objects are genuine and the intentions of the trust are doubtful, cannot be decided at the threshold. The answer to the same lies in s. 12AA(3) of the Act, which is extracted hereunder: "12AA. .............. (3) Where a trust or an institution has been granted registration under cl. (b) of sub-s. (1) and subsequently the CIT is satisfied that the activities of such trust or institution are not genuine or are not being carried out in accordance with the objects of the trust or institution, as the case may be, he shall pass an order in writing canceling the registration of such trust or institution: Provided that no order under this sub-section shall be passed unless such trust or institution has been given a reasonable opportunity of being heard." 11. In the present case, we find no reason as to why the CIT had r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the auditor. The AO had not inquired into the nature of the receipts, before issuing notice under Section 148, and in earlier years also, the amount was held to be received in the corpus fund. 12. In our view, the learned Tribunal has rightly examined the controversy. It is significant to note that the learned Tribunal has further found that AO cannot initiate reassessment proceedings, simply to verify the contents of the return, unlike before it was vested in him in making regular assessment. It was found that the time-limit available for issuance of notice and making assessment under Section 143(3) had expired, but then, on that count, he cannot assume the jurisdiction by venturing to make assessment under Section 148. Even after hearing learned Counsel for the parties at length, we are satisfied that the reasons given by the learned Tribunal are in accordance with law." 6.6. He has also relied upon the decision of this Court in case of Commissioner of Income Tax vs. Shri Digambar Jain Mandir in Tax Appeal No. 21/2017 decided on 14th February, 2017 wherein it has been held as under:- "2. The brief facts of this case are that application in Form No. 10A seeing registration ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 12AA should be dismissed. Gowri Ashram - (2013) 36 taxman.com (Madras)/2013) 217 taxman 97 (Madras)/ (2013) 356 ITR 328 (Madras) - Section 2(15) read with section 12AA of the Income Tax Act, 1961 - Charitable purpose(Objects of general public utility)- Whether where assessee society was formed with an object to provide accommodation and facilities for performance of marriages and other auspicious functions to members of a particular community, viz. Telegu BeriVysia Community, it could not be regarded as society formed with a charitable purpose within meaning of section 2(15) and, therefore, its application seeking registration under section 12AA was to be rejected - Held, yes (Para 12)(in favour of revenue) IT: Where assessee-society was formed with an object to provide accommodation and facilities for performance of marriages and other auspicious functions to members of a particular community, viz. Telugu BeriVysia Community, it could not be regarded as society formed with a charitable purpose within meaning of section 2(15). 8. In all the above judgments Hon'ble Court/Tribunal have held that if the objects of the society/association are for the benefit of a particula ..... X X X X Extracts X X X X X X X X Extracts X X X X
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