CIT (Exemption) Vs Anjuman E Nusratul Muslimin Tankaria (Gujarat High Court)
The Revenue preferred a Tax Appeal under Section 260A of the Income Tax Act, 1961 against the ITAT Ahmedabad order dated 24.04.2024 in ITA No.59/Ahd/2023. The appeal concerned the respondent-assessee’s application for registration of its Trust under Section 12AB.
The respondent-assessee had filed an application for registration under Section 12AB on 15.06.2022 in Form No.10AB under Rule 17A of the Income Tax Rules, 1962. After issuing notice and seeking necessary information, the Commissioner of Income Tax (Exemption), Ahmedabad denied registration under Section 12A on the ground that the assessee was not entitled to exemption in terms of Section 13(1)(b) of the Act.
The assessee appealed to the ITAT Ahmedabad. The Tribunal, by order dated 24.04.2023, allowed the appeal and restored the matter to the Commissioner of Income Tax (Exemption).
Before the High Court, the Revenue proposed two substantial questions of law. The first concerned the Tribunal’s interpretation of the Supreme Court’s decision in CIT v. Dawoodi Bohara Jamat and its conclusion that Section 13(1)(b) could not be invoked for denying registration under Section 12AB. The second concerned amendments to Section 12AB, particularly the provision relating to application of income for the benefit of a particular religious community as a specified violation for cancellation of registration.
