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TMI Blog2024 (6) TMI 725X X X X Extracts X X X X X X X X Extracts X X X X ..... (1)(b) as said provisions would be attracted only at time of assessment and not at time of grant of registration. In the case of Malik Hasmullah Islamic Educational and Welfare Society [ 2012 (8) TMI 680 - ITAT, LUCKNOW ] ITAT held that since provisions of Sections 11, 12 and 13 are intended for exercise of jurisdiction by an AO in an assessment proceedings, Commissioner is not competent to invoke such provisions for purpose of declining registration under Section 12AA. In the case of St. Joseph Academy [ 2015 (2) TMI 495 - ITAT HYDERABAD ] ITAT held that provisions of Section 13 can be invoked by Assessing Officer while framing assessment and not by Commissioner while considering application for registration under Section 12AA. We are of the considered view that the provisions of Section 13 of the Act can be invoked only at the time of assessment and not at the time of grant of registration under Section 12A of the Act. Our view is further supported by the decision of the Hon'ble jurisdictional High Court in the case of CIT (Exemptions) v. Bayath Kutchhi Dasha Oswal Jain Mahajan Trust [ 2016 (9) TMI 8 - GUJARAT HIGH COURT ] wherein on the issue of denial of grant of registrati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion u/s.12A and u/s.80G were already granted and the Appellant has not made any change in activities or alternation in objects of the Trust and the same activities which were held genuine in past years have been continued and that there is no reason to take a separate view on presumption and assumption. (b) Your Appellant also relies on the judgement of CIT (Exemption) vs. Swami Omkaramdas Charitable Trust (2023) 150 taxmann.com 428 (Allahabad) and also of Supreme Court in the case of CIT vs. Excel Industries Ltd. 358ITR P. 295 and submits that in view of Principle of consistency which is fully applicable to the Appellants case the order of Commissioner rejecting u/s.80G(5) be cancelled and the Appellant be granted Renewal Registration u/s.80G(5) as per Law. 4. In view of above facts and circumstances, your Appellant submits that the order of CIT(E) under Appeal rejecting Registration U/S.12AB be cancelled and he be directed to grant Exemption u/s.80G as per Law, keeping in mind facts of the case and provisions of Law. 3. The brief facts of the case are that the assessee trust filed application for registration of trust under Section 12AB of the Act on 15.06.2022 in Form No. 10AB u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Hon'ble Supreme Court in the case of CIT vs. Dawoodi Bohara Jamat, reported in 43 taxmann.com 243, wherein the Hon'ble Apex Court held that the provision of sec 13(1)(b) of the Act is applicable even to a composite trust/institution and held as under: 45. From the phraseology in clause (b) of section 13(1), it could be inferred that the Legislature intended to include only the trusts established for charitable purposes. That however does not mean that if a trust is a composite one, that is one for both religious and charitable purposes, then it would not be covered by clause (b). What is intended to be excluded from being eligible for exemption under Section 11 is a trust for charitable purpose which is established for the benefit of any particular religious community or caste. 8. Further, the Hon'ble Supreme Court in the said case of CIT vs. Dawoodi Bohara Jamat (supra), which was composite in nature, after analyzing the various objects of the trust, held that two of its objects provide for the activities completely religious in nature and restricted to the specific community of the assessee trust are objects with religious purpose only. However, the Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the object of only benefiting one particular community i.e. the Muslim community and further, it was submitted that in view of the aforesaid decision cited above, rendered by the jurisdictional Ahmedabad Tribunal, provisions of Section 13(1)(b) of the Act cannot be invoked for the purpose of denial of registration under Section 12AB of the Act and said provisions can be invoked only at the time of grant of exemption under Section 11 and 12 of the Act, at the time of assessment of such applicant/assessee trust. 5. In response, the Ld. DR placed reliance on the observations made by CIT (Exemptions) in the order rejecting the grant of application filed by the assessee/applicant trust. 6. We have heard the rival contentions and perused the material on record. We observe that in the case of Jamiatul Banaat Tankaria 160 taxmann.com 358 (Ahmedabad - Trib.), the ITAT held that where objects of assessee-trust were primarily charitable rather than favouring any specific religious community, CIT(E) was not justified in denying registration under Section 12A, by invoking Section 13(1)(b) as said provisions would be attracted only at time of assessment and not at time of grant of registrat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons that Section 13 is in the nature of an exemption from applicability of Sections 11 or 12 and the examination of its applicability would only arise at the stage of claim under Sections 11 or 12. Thus, where the income of a trust is eligible for exemption under Section 11, the eligibility for claiming exemption ought to be tested on the touchstone of the provisions of Section 13. In the instant case, it being established that the respondent-trust is a public charitable and religious trust eligible for claiming exemption under Section 11, it becomes relevant to test it on the anvil of Section 13. 7. In view of the above judicial precedents, looking into the facts of the instant case, we are of the considered view that the provisions of Section 13 of the Act can be invoked only at the time of assessment and not at the time of grant of registration under Section 12A of the Act. Our view is further supported by the decision of the Hon'ble jurisdictional High Court in the case of CIT (Exemptions) v. Bayath Kutchhi Dasha Oswal Jain Mahajan Trust [2016] 74 taxmann.com 199/243 Taxman 60 (Guj.)/[2017] 8 ITR-OL 494 (Guj.) wherein on the issue of denial of grant of registration u/s 12A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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