9911796707
TMI Blog2025 (4) TMI 327X X X X Extracts X X X X X X X X Extracts X X X X ..... the Trust is not entitled for exemption under section 11 of the Act. 2. Brief facts of the case is that the assessee is a Trust constituted on 23-06-2022. The assessee applied for Provisional Registration and the same was granted on 08-02-2021 under section 12A(1)(ac)(vi) for the period commencing from Asst. Years 2022-23 to 2024-25. The Assessee filed Form 10AB u/s. 12A(1)(ac)(iii) on 23-02-2023 for final registration. The Ld. CIT(E) issued a show cause notice, looking into the objects of the Trust, whether provisions of Section 13(1)(b) of the Act is applicable to the Assessee Trust, since the objects are meant for particular community as follows: 2 Objects:- 1. To do various works and activities for overall development of Gohilwad V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns and perused the materials available on record. In the present case, the objects (extracted in Para 2 hereinabove) of the Trust namely 1 to 5 are relating to particular caste or community, however objects No. 6 & 7 are not relating to particular community but public at large. Thus the objects enumerated are both religious to particular community and charitable to public at large in nature, which are mixed objects. 4.1. Therefore the solitary question that arise for consideration is whether a Trust created before 01-04-2021 can be denied registration under section 12AB of the Act and by invoking the provisions of Section 13(1)(b) of the Act? This issue is no more res-integra since the Jurisdictional High Court Judgment in the case of CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the said case. The Hon'ble Apex Court, we find, in the said case had categorically 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 must 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the decision of the Hon'ble jurisdictional High Court in the case of CIT v. Bayath Kutchhi Dasa Oswal Jain Mahajan Trust, (2017) 8 ITR-OL 494 (Guj) wherein on the issue of denial of grant of registration u's 12A of the Act by invoking section 13(1)(b) of the Act, it was categorically held that the provisions of section 13 would be attracted only at the time of assessment and not at the time of grant of registration. The relevant finding of the Hon'ble High Court at para 8 of his order is as under. "8. Thus, very premise for the Commissioner to come to the conclusion that the objects of the trust were confined for the benefit of a religious community, is incorrect. Thereafter to suggest that the activities were earned out onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in burial and funerals. 9. Cottage Industries, Rural Industries, Women Industries and to run each such activities to remove unemployment with the help of the government" 10. The Ld. CIT(Exemption) has referred to object at S. no 6 which is scholarship to Muslim students for their studies and to make provision so can get religious education for arriving at his finding that the objects are for the benefit of a particular religious community so as to invoke section 13(1)(b) of the Act. Further we find that the Ld. CIT(Exemption) notes that otherwise the objects are chartable in nature except for the aforestated object. As per section 13(1)(b) exemption u/s 11 is dented if the trust is created or established for the benefit of a particular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eral 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. In view above finding, we do not find any question of law much less any substantial question of law arises for consideration." 5. The above judgments will hold good to a Trust created before 01-04-2021. Since 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 of the Act. Having crossed this hurdle then after the provisions of Section 13(1)(b) will get attracted whether the trust spended for the benefit of particular community, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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