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TMI Blog2024 (6) TMI 801X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee-trust and noted that all the objects are not restricted to particular religious community or caste SUNNI MUSLIMS . We direct the ld. CIT(E) to reconsider the application of assessee regarding registration under section 12AB of the Income Tax Act, 1961 and grant the registration to the assessee-trust in accordance with law. For statistical purpose, ground of appeal raised by assessee-trust is allowed. - SHRI PAWAN SINGH, JM AND DR. A. L. SAINI, AM For the Appellant : Shri Suresh K. Kabra, CA For the Respondent : Shri S. M. Keshkamat, CIT(DR) ORDER PER DR. A. L. SAINI, AM: Captioned appeal filed by the assessee, is directed against the order passed by the Learned Commissioner of Income Tax (Exemption), Ahmedabad, [in short the ld. CIT(E) ], wherein Learned CIT(E) rejected the application filed by assessee in Form No. 10AB for registration under section 12AB of the Income Tax Act, 1961 (in short the Act ), vide order dated 29.12.2022. 2. The grounds of appeal raised by the assessee are as follows: 1. The CIT(E) has erred on facts of the case and in law by rejecting the application for registration u/s 12A citing violation of section 13(1)(b). 3. Brief facts qua the issue are ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2AA or section 12AB, as the case may be, if any; (f) certified copy of order of rejection of application for grant of registration under section 12A or section 12AA or section 12 AB, as the case may be, if any; (g) where the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self- certified copies of the annual accounts of the applicant relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up; (h) where a business undertaking is held by the applicant as per the provisions of sub-section (4) of section 11 and the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of such (h) business undertaking relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up and self- certified copy of the report of audit as per the provisions of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rejecting such application and also cancelling its registration after affording a reasonable opportunity of being heard; (C) where the application is made under sub-clause (vi) of the said clause, pass an order in writing provisionally registering the trust or institution for a period of three years from the assessment year from which the registration is sought, and send a copy of such order to the trust or institution. 6. However, in response to the said notice, the assessee has not furnished any details in reply. Therefore, another notice on 28/11/2022, was issued by ld CIT(E ), to furnish pending details. In response to the said notice, the assessee has furnished its submission. In the present application filed in Form No. 10AB, the applicant has stated the nature of activities as Religious cum charitable and objects as Religious Education . From perusal of objects of the applicant/assessee it is observed that following object/objects, which is otherwise charitable in nature, is/are for the benefit of any particular religious community or caste: i.e. SUNNI MUSLIMS. Objective and Purpose of trust: The clause (6.1) (6.4)) stipulates as (6.1) To make all the possible efforts in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that in case of composite trust/institution, i.e. charitable cum religious, the provision of section 13(1)(b) of the Act is not applicable. However, the said controversy was resolved by 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 section 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. Further, the Hon'ble Supreme Court in the said case of CIT vs Dawoodi Bohara Jamat (supra), which was composite in nature, after analysing the various objects of the trust, held that two of its objects ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... make all the possible beneficial acts in the interest of country safety, co-operation and the brotherliness among the community. 3. To maintain preserve the affection, sentiments and association among all the Muslim people of community. 4. To make effort for abolishing the social evils giving the guidance to the society as per the shariat for the social prosperity. 5. By forgetting the local discord and disputes and to resolve the issues and disputes at the local level. 6. To maintain the love affection and brotherliness with the people apart from the society. 7. In order to make the addition and improvement in the assets of the trust, to purchase the assets and to sell and let it out and to get them rectified. 8. To accumulate the Lillah Fund contribution for the Trust and to accept the gift of the immovable and the movable assets. 14. The ld Counsel therefore contended that objects Nos. 4, 5 and 6 above, are not restricted to the caste SUNNI MUSLIMS and these objects are for other general public/persons. 15. On the other hand, learned Commissioner of Income Tax Departmental Representative (ld. CIT-DR) for the Revenue relied on the findings of the ld. CIT(E). 16. We have heard bot ..... X X X X Extracts X X X X X X X X Extracts X X X X
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