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TMI Blog2006 (12) TMI 123X X X X Extracts X X X X X X X X Extracts X X X X ..... ambekar for the appellant, A. P. Patankar for the respondent. JUDGMENT The judgment of the court was delivered by S. K. KULSHRESTHA J.—1. This appeal under section 260A of the Income-tax Act, 1961 (for short, "the Act"), has been filed to assail the order dated November 24, 2003, passed by the Tribunal, Indore Bench, Indore, by which the claim of the appellant-trust for registration under section 11 as declined by the Commissioner of Income-tax, has been affirmed in appeal before the Tribunal, 2. This appeal has been admitted by this court by order dated November 23, 2004, on the following substantial question of law: "Whether the Tribunal was justified in holding that the appellant-trust is not entitled to claim the reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... persons of the Samaj living in the States of Madhya Pradesh and Rajasthan only where they have been recognised as backward class. 5. Section 11 of the Income-tax Act provides for the exclusion of income from property held for charitable or religious purposes. It lays down that subject to the provisions of sections 60 and 63, the income enumerated in clauses (a), (b), (c) and (d) shall not be included in the total income of the previous year of the person in receipt of the income. The income referred to is the income derived from property held under trust wholly for charitable or religious purposes to the extent to which such income is applied to such purposes in India; and, where any such income is accumulated or set apart for applicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... viding that a trust or institution created or established for the purposes of scheduled castes, backward classes, scheduled tribes or women and children shall not be deemed to be trust or institution created or established for the benefit of a religious community or caste within the meaning of clause (b) of sub-section (1). Learned counsel, therefore, submits that by virtue of the trust being of the Dhakad Samaj, recognised backward class, the embargo contained in section 13(1) (b) is removed and the authorities below should have considered the case of the appellant-trust in the light of Explanation 2, providing for a special provision in their case. The Tribunal observed in paragraph 8 of its decision that considering the totality of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e section 11 of the Act provides for exemptions to the trust registered under the Act, it is primarily the purpose of section 11 that will dominate or prevail over other consideration. Section 11 provides for this exemption only if the property held is for charitable or religious purposes. It is only when such a purpose is shown that registration can be granted. It is in this context that in the case of trust for charitable purposes or charitable institution created or established after the commencement of the Act, the income thereof if the trust or institution is created or established for the benefit of any particular religious community or caste, shall be excluded. Reference to the religious community or caste will have to be read ejusde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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