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TMI Blog2024 (10) TMI 1559X X X X Extracts X X X X X X X X Extracts X X X X ..... age of granting registration u/s 12AB of the Act. This principle was reiterated in the case of Jamiatul Banaat Tankaria vs. CIT(Exemption), Ahmedabad [ 2024 (3) TMI 376 - ITAT AHMEDABAD ] The assessee s has categorically stated that all documents were uploaded online through the official portal as per the notices issued. CIT (Exemption) has not pointed to any specific document that remained unfiled. In the absence of any specific deficiency in documentation being highlighted, we do not find merit in the Department s argument that the assessee failed to comply with the document submission requirement. Upon examination of the Trust's objectives, we find that the Trust is engaged in various educational, social, and economic activities that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... social, and economic welfare activities. The CIT (Exemption), after issuing multiple notices, rejected the registration application, citing that the objects of the Trust were confined to the Chhasath Prajapati Community , thus attracting the provisions of section 13(1)(b) of the Act, which disallows exemption for trusts benefiting a particular community. Additionally, it was noted that the assessee failed to provide certain details as called for by the CIT (Exemption). 3. The assessee is in appeal before us with following grounds of appeal: 1. The Commissioner of Income Tax(Exemption) Ahmedabad has eared in Law and on facts, in rejecting the application in form 10AB U/S 12AB of the Income Tax Act, 1961, on non satisfaction of genuineness o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee countered the DR s arguments, stating that the assessee had indeed uploaded all the required documents online through the Income Tax Department s portal as per the notices issued. The AR further contended that the CIT (Exemption) did not specify any particular document or detail that was not provided, and the rejection was primarily based on a misunderstanding of the nature of the Trust s activities. The AR also placed reliance on the judgement of the Hon ble Supreme Court in the case of CIT vs. Dawoodi Bohara Jamat [43 taxmann.com 243] , which clarified that section 13(1)(b) of the Act applies at the stage of exemption under section 11 of the Act, not at the stage of granting registration under section(s) 12A/12AB of the Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that Trust with charitable objects, which existed for the benefit of a particular religious community qualified as charitable entity serving the public at large and this was sufficient for grant of registration under section 12A of the Act, and the provisions of section 13(1)(b) of the Act would be attracted only at the time of granting exemption to the assessee, wherein if it was found that the trust existed for the benefit of a particular religious community only, the exemption under section 11 was to be denied to the assessee. The Hon'ble Apex Court, therefore, 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 granti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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