9911796707
TMI Blog2024 (7) TMI 952X X X X Extracts X X X X X X X X Extracts X X X X ..... re the commencement of the Income-Tax Act 1961, hence, even if, the trust was created only for a particular community, ( LEVVA PATEL ), the Ld. CIT(E), should not have denied the registration of the trust, provided, the assessee- trust fulfilled the conditions mentioned in section 12AB of the Income Tax Act, 1961 and Rule 17 A of the Income Tax Rules, 1962. Therefore, we find that judgments referred by Ld. CIT(E) in the case of Palghat Shadi Mahal Trust [ 2001 (7) TMI 8 - SUPREME COURT] and the case of Dawoodi Bohara Jamat [ 2014 (3) TMI 652 - SUPREME COURT] are not applicable to the assessee trust under consideration. Registration of the trust, should not be denied on account of provisions of section 13(1) (b) of the Income Tax Act, 1961, as these provisions are not applicable to the assessee-trust, under consideration, as explained above. Therefore, we direct the ld CIT(E ) to grant the registration to the assessee- trust provided, the assessee-trust fulfilled other conditions, as mentioned in section 12AB and Rule 17A of the Income Tax Rules, 1962. For statistical purposes, the appeal of the assessee is treated to be allowed. - Dr. Arjun Lal Saini, Accountant Member And Shri D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d CIT(E ). 4. From perusal of objects of the assessee-trust, it was observed by ld CIT(E) that following objects, which is otherwise charitable in nature, are for the benefit of any particular religious community or caste LEVA PATEL : To arrange boarding for students of caste and to do useful work for caste Therefore, ld CIT(E ) noticed that it would be essential to analysis, as to whether the provision of section 13(1)(b) of the Act, is applicable to the assessee-trust or not. The ld CIT(E), observed that section 13(1) (a) of the Act, stipulates that provisions of section 11 and 12 would not apply to an assessee, where 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. Therefore, the provision of section 13(1)(a) of the Act, is applicable only when any part of income is from the property held under a trust for private religious purposes which does not ensure for the benefit of the public. Further section 13(1)(b) of the Act stipulates that provisions of section 11 and 12 would not apply in the case of a trust for charitable purposes or a charitable institution created or established after ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... '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 Apex Court held that other four objects of the assessee trust were charitable in nature and finally held that the trust is a charitable and religious trust which does not benefit any specific religious community and therefore, it cannot be held that section 13(1)(b) of the Act would be attracted and hence the trust would be eligible to claim exemption u/s 11 of the Act. In concluding para, the Hon'ble Apex Court held as follows: 50. In that view of the matter, we are of the considered opinion that the respondent-trust is a charitable and religious trust which does not benefit any specific religious community and therefore, it cannot be held that Section 13(1)(b) of the Act would be attracted to the respondent-trust and thereby, it would be eligible to claim exemption under Section 11 of the Act. 6. In the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Michaels High School vs. CIT [2019] 111 taxmann.com 242(Patna) v. Co-ordinate Bench of ITAT, Jaipur case of Bhagwan Mahavir Purusharth Prerna Nidhi Nyas vs. CIT [2012]23 taxmann.com 311(JP) vi. Hon ble ITAT Pune Hon le Gujarat High Court in the case of Kul Foundation vs. CIT as well as DIT(Exe) vs. Panna Lalbhai Foundation [2015] 68 SOT 310(Pune) 8. Therefore, ld. Counsel for the assessee, prayed the Bench that learned CIT- (exemption) may be directed to grant the registration under section 12AB of the Income Tax Act 1961. 9. On the other hand, the Ld. DR for the Revenue, submitted that the assessee-trust is created for particular caste and community, that is, for LEVVA PATEL , therefore, the provisions of section 13(1) (b) of the Act, would be applicable to the assessee-trust, under consideration. Moreover, the assessee has not proved the genuineness of the its activities. The Ld. DR also pointed out that claim of ld Counsel that his assessee`s trust was in existence since 1946, but no activities have been done by the assessee-trust, since then, even for particular caste, LEVVA PATEL . Therefore, the genuineness of the activities of the trust, did not establish, in the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was purchased by the trust in 1946. As per the PTR records, the assessee- trust became an owner of land by registered purchase deed, dated 26.12.1946 and 30.06.1959. Therefore, the assessee- trust, was in existence before the commencement of the Income-Tax Act 1961, hence, even if, the trust was created only for a particular community, ( LEVVA PATEL ), the Ld. CIT(E), should not have denied the registration of the trust, provided, the assessee- trust fulfilled the conditions mentioned in section 12AB of the Income Tax Act, 1961 and Rule 17 A of the Income Tax Rules, 1962. Therefore, we find that judgments referred by Ld. CIT(E) in the case of Palghat Shadi Mahal Trust (supra) and the case of Dawoodi Bohara Jamat (supra), are not applicable to the assessee trust under consideration. 11. Therefore, considering, the above facts and circumstances, we state that the registration of the trust, should not be denied on account of provisions of section 13(1) (b) of the Income Tax Act, 1961, as these provisions are not applicable to the assessee-trust, under consideration, as explained above. Therefore, we direct the ld CIT(E ) to grant the registration to the assessee- trust provided, the ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
