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TMI Blog2022 (9) TMI 1638X X X X Extracts X X X X X X X X Extracts X X X X ..... granting registration, the objects of the Trust for which it was formed, is only to be looked into and the CIT s satisfaction about genuineness of activities of the Trust was not criteria as the Trust was just commencing activities. Hence the issue regarding satisfaction or genuineness of the activities of the trust is not a matter to be looked into at the time of granting registration u/s 12AA of the Act. Invoking provision of section 13(1)(b) - Where the Trust attracts section 13 (1)(b) of the Act and therefore, not entitle to the claim of deduction u/s 11 and 12 of the Act is a matter of concern only at the time of assessment proceedings. As decided in Barkate Saifiyah Society [ 1993 (11) TMI 13 - GUJARAT HIGH COURT] has held that the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ritable activity for public at large. 3. Against the rejection of application of the assessee for registration u/s. 12AA of the Act by the CIT(E), the assessee is now in appeal before the Tribunal. 4. Ld. AR before us contended that as per the bye laws of society, the objects and activities are not limited to assessee society only but to whole public at large. Ld. AR submitted that considering the objects and activities of the society, the assessee society is entitled for registration u/s. 12AA of the Act. Also, rejection of the application of assessee society by triggering provisions of section 13(1)(b) of the Act was not called for, since, explanation 2 of the section 13 explains that A trust or institution created or established for the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 6. We have heard rival submissions, perused the material evidence available on record and judicial pronouncement relied upon by the Ld AR. It is observed that the registration under section 12A was denied to the assessee society on the ground that the assessee society is established for a particular Community and almost objects are for the benefit of a particular community. The ld. CIT(E) also noted that the assessee has also not furnished any details or evidences regarding the charitable work carried out by the assessee before him and the main objects of the society are for the benefit of Kanya Kubj Samaj , which is a subcommunity in the Brahmin Community belonging to Kanya Kubj Gotra. 7. Regarding duties of CIT(E) to be performed with r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Trust attracts section 13 (1)(b) of the Act and therefore, not entitle to the claim of deduction u/s 11 and 12 of the Act is a matter of concern only at the time of assessment proceedings. 9. The Hon ble Gujarat High Court in the case of Commissioner of Income Tax Vs. Barkate Saifiyah Society, reported in (1995) 213 ITR 492 (GUJ)/(1995) 78 TAXMAN 6, has held that the provisions of section 13(1)(b) will apply only to the Trust which are purely for charitable purposes. If the assessee Trust has objects in both charitable and religious in nature, in such Trust, Section 13(1)(b) is not applicable. On perusal of the bye-laws of the assessee society it is evident that the assessee society has charitable as well as religious objects, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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