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TMI Blog2024 (10) TMI 712X X X X Extracts X X X X X X X X Extracts X X X X ..... ut are largely charitable in character for general public at large and for the purpose of granting registration under 12A of the Act, the provision of section 13 (1) (b) cannot be referred to. Section 13 (1) (b) is to be applied while granting exemption to the trust. Decided in favour of assessee. - HONOURABLE MR. JUSTICE BHARGAV D. KARIA AND HONOURABLE MRS. JUSTICE MAUNA M. BHATT Appearance: For the Appellant(s) No. 1 : Ms Maithili D Mehta (3206) For the Respondent : None ORAL ORDER (PER : HONOURABLE MRS. JUSTICE MAUNA M. BHATT) 1. Heard learned advocate Ms. Maithili Mehta for the appellant. 2. This appeal under Section 260A of the Income-Tax Act, 1961 ( the Act for short) is directed against the order dated 06.03.2024 passed by the Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by CIT(E) that the objects of the assessee trust were for the benefit of particular religious community or caste and accordingly, the CIT(E), held that the assessee is not entitled for exemption in terms of Section 13 (1) (b) of the Act. The CIT(E), denied assessee, grant of registration under Section 12A of the Act. 4. Aggrieved by rejection of registration, the assessee filed appeal before ITAT. The ITAT vide order dated 06.03.2024, allowed the Appeal of the assessee and directed CIT (E) to grant the assessee registration under section 12A of the Act, against which present appeal is filed. 5. Learned Senior Standing Counsel Ms. Maithili Mehta for the Appellant revenue submitted that the order of ITAT is erroneous because the ITAT has erre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re, categorically found that as per the provisions of law, section 13 (1) (b) could not be applied for denying the grant of registration, but was to be applied only while granting/denying exemption to the assessee. 6. It is pertinent to note that the Hon'ble Apex Court has categorically held in the said decision that section 13 (1) (b) comes into picture and is to be applied only when the eligibility of exemption of income in terms of provisions of section 11 is to be determined and not at the time of grant of registration. The Hon'ble Apex Court has categorically stated that the assessee has to first cross the hurdle of being eligible to exemption under section 11 by obtaining a certificate of registration under section 12A in this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s community, is incorrect. Thereafter to suggest that the activities were earned 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 the basis of material that may be brought on record. 9. Even otherwise, we have gone through the objects of the trust, which were placed before us in the statement of facts which are as under: 1. Propagation and campaign of any sort of Religious and worldly cultivated activities, Gaining and education, to maintain and administer Urdu English Arabic Language cultivation and training, Cultivation of craft and industrial training. 2. To do welfare activitie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trust is created or established for the benefit of a particular religious community. With majority of the objects found to be not catering to a particular community and no finding of the assessee actually catering for the benefit of a particular community, there is no case for invoking section 13 (1) (b) of the Act in the present case. Therefore, we hold that even on merits the Ld. CIT (Exemption) was wrong in holding that section 13 (1) (b) was applicable in the facts of the present case. 11. In view of the above, we hold that the objects of the trust are not wholly for the benefit of a particular religious community, but are largely charitable in character for general public at large, and for the purpose of granting registration under se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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