Shree Sanand Jamaliya Patidar Panch Vs CIT (Exemption) (ITAT Ahmedabad)
The Income Tax Appellate Tribunal (ITAT), Ahmedabad, dismissed the assessee trust’s appeal against the order of the Commissioner of Income Tax (Exemption), Ahmedabad, rejecting its application for registration under Section 12AB of the Income-tax Act. The trust, created on 28 February 2022 and registered with the Deputy Charity Commissioner on 31 May 2022, had applied for final registration under Section 12AB through Form 10AB. The Commissioner (Exemption) denied registration after observing that the trust’s objects were intended for the benefit of members and families of the Sanand Jamaliya Patidar community rather than the public at large, treating this as a specified violation under the Explanation to Section 12AB(4) read with Section 13(1)(b) of the Act.
Before the Tribunal, the assessee relied on various judicial precedents and sought setting aside of the Commissioner’s order with a direction to grant registration under Section 12AB. The Revenue supported the impugned order.
The Tribunal examined the trust deed and noted that while several objects related to education, public health, relief work, women’s welfare, medical aid and other charitable activities, the first two principal objects specifically aimed to promote education and social welfare for the Jamaliya Patidar community. According to the Tribunal, these objects were confined to a particular community and therefore constituted a specified violation under the Explanation to Section 12AB(4).
