Gohilwad Vankar Samaj Seva Trust Sidharth Society Vs CIT (Exemption) (ITAT Ahmedabad)
Section 13(1)(b) irrelevant at registration stage, rules ITAT Ahmedabad; Caste-based objects not a bar for 12ab registration -Relief to trust ; Eligibility u/s 11 to be examined at assessment, not registration
Trust applied for Provisional Registration & u/s 12A(1)(ac)(vi) for the period commencing from Asst. Years 2022-23 to 2024-25. Assessee filed Form 10AB u/s. 12A(1)(ac)(iii) on 23-02-2023 for final registration.
CIT(E) held that the charitable activities enumerated by the Trust are restricted to the benefit of a particular religious community or caste namely “Gohilwad Vankar Samaj”. Therefore the provisions of Section 13(1)(b) will be applicable & assessee is not entitled for exemption u/s. 11. Hence, denied registration u/s. 12AB.
Tribunal noted that while some of the objects of the Trust namely are relating to particular caste or community but the other objects are not relating to particular community but public at large. Thus the objects are both religious to particular community & charitable to public at large in nature, which are mixed objects. Therefore the solitary question that arise for consideration is whether a Trust created before 01-04-2021 can be denied registration u/s 12AB & by invoking the provisions of Section 13(1)(b)? Tribunal held that this issue is no more res integra since the Jurisdictional High Court in CIT(E) Vs Jamiatul Banaat Tankaria[2024] 168 taxmann.com 35 held that the provisions of Section 13 would be attracted only at the time of assessment since the quantum of expenses made for religious & common purposes can be determined from Profit & Loss accounts only & not at the time of granting registration u/s. 12A. Tribunal also noted that Jurisdictional High Court in CIT v. Bayath Kutchhi Dasa Oswal Jain Mahajan Trust & by observed that when the objects of the trust are not wholly for the benefit of a particular religious community, but are largely charitable in character for general public at large, & for the purpose of granting registration u/s 12A, the provision of section 13(1) (b) cannot be referred to, which is to be applied only when granting the exemption to the trust.
