9911796707
TMI Blog2024 (12) TMI 1532X X X X Extracts X X X X X X X X Extracts X X X X ..... interpretation in the case of Shastri Yagnapurush Dasji V. Muldas Bhudardas Vaishya [1966 (1) TMI 78 - SUPREME COURT] and also Jamiatul Banaat Tankaria [2024 (10) TMI 712 - GUJARAT HIGH COURT] with regard to interpretation of Section 13(1)(b) while issuing registration u/s 12A of the Act.
Hence, we direct the ld. CIT(Exemption) to pass an order afresh after considering the above quoted judgements.
Appeal of the assessee is allowed for statistical purposes. X X X X Extracts X X X X X X X X Extracts X X X X ..... the case. For the sake of ready reference, the decision of the ld. CIT(Exemption) is reproduced as under:- "7. The submission of the applicant dated 29.01.2024 is considered but the same is not found acceptable as the applicant itself has admitted that the trust is engaged in doing the activities for the welfare of Hindus and also supports the objects of trust. 7.1 Further, the applicant has claimed that Hindu does not denote a specific community but rather represents a religious affiliation. The point of view of the applicant is not found acceptable because there are other religions i.e. Islam, Christianity, Bhodh, Sikh Jain etc. in India, if the said view of trust is accepted then every trust will start doing charitable activities fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is created or established for the benefit of any particular religious community or caste; Therefore, the provision of sec 13(1)(b) of the Act is applicable in a case of charitable trust/institution created or established after commencement of this Act and is created or established for the benefit of any particular religious community or caste. Various courts have held that the provisions of sec 13(1)(b) of the Act is not applicable in the case of a religious trust. The provision of sec 13(1)(b) of the Act is applicable to a charitable trust, has been settled by the Hon'ble Supreme Court in the case of CIT vs. Palghat Shadi Mahal Trust, reported in 120 Taxman 889, wherein in the case of a public charitable trust, the Hon'ble Apex ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Hon'ble Apex court in the above referred cases, the provision of sec 13(1)(b) would be applicable and therefore the applicant/assessee would not be eligible for exemption u/s 11 of the Act. Therefore in the facts and circumstances of the case, applicant/assessee cannot be granted registration u/s 12A of the Act. In view of the above, the present application filed in Form No. 10AB u/s 12A(1)(ac)(iii) of the Act is rejected and provisional registration stands cancelled. 11. Further, the applicant should compute its tax liability under section 115TD of Income Tax Act 1961 read with Rule 17CB of IT Rules and report the same in return of Income. It should also pay the tax so computed within timeline provided under section 115TD(5) o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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