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TMI Blog2025 (1) TMI 383X X X X Extracts X X X X X X X X Extracts X X X X ..... 1)(b) of the Act which is applicable only in a case of Charitable Trust or Institution created or established after commencement of this Act and only for the benefit of any particular religious community or caste namely Jains and thereby denied the registration, which in our considered view is well within the provision of amended law and therefore the order denying registration passed by CIT[E] does not require any interference. Decided against assessee. - Dr. Brr Kumar, Vice President And Shri T.R. Senthil Kumar, Judicial Member For the Assessee : S hri Hardik Vora, A.R. For the Revenue : Shri Kamlesh M akw ana, CIT-DR ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Assessee as against the order dated 27.07.2024 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying registration under section 12AB of the Income Tax Act, 1961 [herein after referred as the Act ] on the ground that the objects of the Trust exclusively for Jain Community which is violation of clause (d) to Explanation of Section 12AB(4) of the Act r.w.s. 13(1)(b) of the Act. 2. Brief facts of the case is that the assessee is a Trust created on 05-01-2023 with the follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aka will take action in accordance with the existing law in the works of repair, improvement, increase etc. and allot the surplus amount to other Jain Sangh as required. Devdravya will be used according to the principles of Jainism. (4) Creation of a separate fund according to principles of Jainism: - According to Jain principles, for the Ashtaprakari worship of God, different funds like Phulpooja, Sukhadpooja, Prakshal etc. will be collected and spent. (5) Consolidated Fund (Common Fund): Create a fund for the upkeep and maintenance of the institution and establish an idol of God as per the constitution of the institution. Anjan will perform Salaka and conduct. (6) This Trust runs according to the principles of Jainism and will act accordingly and will seek the advice of Acharya Bhagwant wherever necessary. (7) This trust will construct Derasar, Gnan Mandir, Pathshala, Bhojanshala, Upashrayo, Vaiyavacha Bhavan, Ayambil Shala, Yatrik Bhavan, Library (Books of Jainism) etc. Will maintain and repair when necessary. (8) This Trust will greet all the shravak and shravikas who believes in jain sangh and jainism. According to the principles of Jainism, all necessary steps will be taken t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st/Dy. Charity commissioner Ahmedabad, the trust is registered on 04.05.2023 with registration number E/23860/Ahmedabad. Since the assessee is registered after commencement of the act it has committed specific violation under clause(d) of section 12AB(4) of Income Tax Act, 1961. 9.1. Further, the Hon'ble High Court of Allahabad in the similar matter while relying on the above judgment of the Hon'ble Apex court, has dismissed the appeal of the assessee filed in ITA No. - 64 of 2014 in the case of Shri Agrawal Sabha (Regd.) vs. Commissioner of Income Tax-1. Agra reported in (2014) 45 taxmann.com 273 (Allahabad) and held that: . 7. In a recent judgment of the Supreme Court in CIT v. Dawoodi Bohara Jamat [2014] 43. taxmann.com 243, it has been held that Sections 11 and 12 are substantive provisions which provide for exemptions to religious or charitable trusts. Sections 12A and 12AA lay down the procedural requirements. Section 13 sets out the circumstances in which the exemption would not be available to a religious or charitable trust. One restriction is where the trust or institution is created or established for the benefit of any particular religious community or caste [Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rated in clauses (a) and (b) of sub section (1) of Section 12AA. 10. The assessee having failed to discharge the burden, the Tribunal in our view was justified in confirming the decision of the Commissioner. At the same time, it has been left open to the assessee to move a fresh application for registration before the Commissioner. We need only to clarify that if this is done, it shall be duly considered in accordance with law on the basis of the materials that will be produced by the assessee. 11. Learned counsel appearing on behalf of the assessee relied upon an earlier judgment of the Supreme Court in Ahmedabad Rana Caste Association v. CIT (1971) 82 ITR 704. The judgment of the Supreme Court may not be of much assistance to the appellant since the position under the 1922 Act was materially different from the Act of 1961, as would be apparent from the following extract of the judgment: 4 Under the Act 1922 a trust for the benefit of any particular religious community or caste was entitled to exemption but under the Act of 1961, a charitable trust which is created for such benefit on or after the first day of April, 1962, would be disentitled to the exemption. In the present case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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. Accordingly, as per the Registration Certificate issued by the Deputy/ Asst. Charity Commissioner, Ahmedabad vide certificate bearing registration number E/23860/Ahmedabad it is verifiable that the trust is registered on 04.05.2023 and the above referred object of the assessee trust is composite in nature. To fortify this finding, on perusal of Form 10AB at para/point 5 the applicant itself has opted other charitable objects in addition to the Religious object. 10. From the above referred discussion and objects of the applicant/assessee it is evident that it is a Composite trust and above referred object number 5 is restricted to benefit of a particular religious community or caste ie. Jain, which is a specific violation under clause (d) below explanation to section 12AB(4) of Income Tax Act, 1961 r.w.s 13(1)(b) of Income Tax Act, 1961. 11. In view of the above, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Samaj Trust -Vs- CIT(E) [2024] 162 taxmann.com 270 (Ahmedabad-Trib.) Thus Ld Counsel requested to set aside the order passed by the Ld. CIT(E) and direct him to grant Registration u/s. 12AB of the Act to the assessee trust. 6. Per contra Ld. CIT-DR Shri Kamlesh Makwana appearing for the Revenue supported the order passed by Ld. CIT(E) and submitted that the Trust is created and registered on 05-04-2023. Hence the new provision of Section 12AB(4) with Explanation [d] will be squarely applicable to the facts of the present case. Since the objects of the Trust is exclusively for particular community namely Jains which is a specified violation as per Explanation [d] of Section 12AB(4) of the Act. Thus, the assessee Trust is not entitled for registration and the order passed by the Ld. CIT(E) does not require any interference. Therefore the appeal filed by the assessee is liable to be dismissed. 7. We have given our thoughtful consideration and perused the materials available on record. Section 12 to 12AB has undergone various changes from time to time. More particularly after 01.04.2021 the procedure for making reference to CIT(E) for cancellation of registration granted earlier has ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... purposes, which does not ensure for the benefit of the public, or (d) the trust or institution established for charitable purpose created of established after the commencement of this Act, has applied any part of its income for the benefit of any particular religious community or caste, or (e) any activity being carried out by the trust or institution,- (i) is not genuine, or (ii) is not being carried out in accordance with all or any of the conditions subject to which it was registered: or (f) the trust or institution has not complied with the requirement of any other law, as referred to in item (8) of sub-clause (i) of clause (b) of sub-section (1), and the order, direction or decree, by whatever name called, holding that such non-compliance has occurred has either not been disputed or has attained finality of (g) the application referred to in clause (ac) of sub-section (1) of section 12A is not complete or it contains false or incorrect information. 7.1. It is undisputed fact that the Assessee Trust is created on 05- 01-2023 and the new provisions of section 12AB which is applicable from 01.04.2021. Perusal of the above provisions more particularly Clause (d) to Explanation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... provisions of Sections 11 and 12 towards determination of eligibility of a Trust to claim exemption under the aforesaid provisions, while granting registration. 7.4. Further Ld CIT [E] has considered the provisions of sec 13(1)(b) of the Act which is applicable only in a case of Charitable Trust or Institution created or established after commencement of this Act and only for the benefit of any particular religious community or caste namely Jains and thereby denied the registration, which in our considered view is well within the provision of amended law and therefore the order denying registration passed by Ld CIT[E] does not require any interference. 8. Next coming to the case laws relied by the Ld Counsel for the assessee namely Bayath Kutuchhi Dasha Oswal Jain Mahajan Trust (cited supra) wherein Hon ble Jurisdictional High Court held that the Trust had large number of other objects for the benefit of General Public apart from objects for benefit of Religious Community, therefore held that the Tribunal was correct in allowing Registration to the Trust by observing as follows: 7. It can thus be seen that the Commissioner focused his attention to clause 4.2 of the objects of the t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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