Section 12AB Registration Denied: Trust’s Activities Restricted to Specific Religious Community

Vaishnav Sadhu Vs CIT (ITAT Ahmedabad) Income Tax Appellate Tribunal (ITAT) Ahmedabad has dismissed an appeal filed by a trust, upholding the Commissioner of Income Tax (Exemption)’s (CIT(E)) decision to deny registration under Section 12AB of the Income Tax Act, 1961. The core of the dispute revolved around the trust’s foundational objects, which the tax authorities deemed to exclusively benefit a specific religious community or caste, thereby attracting the provisions of Section 13(1)(b) of the Act, which disentitles such trusts from income tax exemptions. The case, Vaishnav Sadh...