Case Law Details
CA Sandeep Kanoi
SC explains religious/charitable purpose and ‘substantial question of law’
In the case of CIT vs. Dawoodi Bohara Jamat SC has held that the respondent-trust is a charitable and religious trust which does not benefit any specific religious community and therefore, it cannot be held that Section 13(1)(b) of the Act would be attracted to the respondent-trust and thereby, it would be eligible to claim exemption under Section 11 of the Act.
From the phraseology in clause (b) of section 13(1), it could be inferred that the Legislature intended to include only the trusts established for charitable purposes. That however does not mean that if a trust is 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.
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Author Bio
Section-2(15) of the I.T.Act,1961 has explained what is “charitable” work. The above judgment of Hon’ble Supreme Court will certainly through light to the Authorities granting Registration U/s.12-AA of the Act to those organizations, who carry on even a little work, which is charitable in nature.