CIT (Exemption) Vs Bhojaram Leuva Patel Seva Samaj Trust (Gujarat High Court)
The appeal was filed by the Revenue under Section 260A of the Income-tax Act, 1961 challenging the order dated 30.04.2024 passed by the Income Tax Appellate Tribunal, Ahmedabad in ITA No. 667/Ahd/2023.
The Revenue proposed two substantial questions of law. The first questioned whether the Tribunal had erred in relying on the Supreme Court’s decision in CIT v. Dawoodi Bohara Jamat to hold that Section 13(1)(b) could not be applied for denying registration under Section 12AB, despite the Revenue’s contention that the trust’s objects benefited only a particular religious community. The second questioned whether the Tribunal had ignored the amendments introducing Section 12AB(4), particularly the Explanation referring to application of income for the benefit of a particular religious community as a specified violation for cancellation of registration.
Material Facts
The respondent trust applied for registration under Section 12AB on 21.12.2022 by filing Form No. 10AB.
The CIT (Exemption), Ahmedabad, by order dated 28.06.2023, rejected the application on the ground that the trust’s objects were confined to the benefit of a particular religious community or caste, namely the Leuva Patel Community.
Proceedings Before the Tribunal
The assessee challenged the rejection before the Tribunal.
