Porwal Yuvak Sangh Kota Vs CIT Exemption (ITAT Jaipur)
ITAT Jaipur held that exemption under section 11 of the Income Tax Act eligible to trust involved in charitable-religious activities which doesn’t benefit any specific religious community. Accordingly, matter restored to CIT(E) for reconsideration.
Facts- The assessee trust filed an application in form no. 10AB seeking registration u/s. 12AB of the Act vide dated: 29.09.2023, in continuation to earlier application filed and temporary registration granted vide dated: 05.04.2022. Application of the assessee was rejected. Being aggrieved, the present appeal is filed.
Conclusion- Apex Court in the case of CIT, Ujjain vs. Dawoodi Bohra Jamat 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. In view of the above ratio laid down by the Hon’ble Apex Court and totally misplaced by the Ld. CIT (E), matter is restored back to the file of the Ld. CIT (E) for reconsideration in the light of the decision of the Hon’ble Apex Court after giving the assessee a reasonable opportunity of being heard and pass the order strictly in compliance to the decision of the Hon’ble Apex Court.
