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2014 (4) TMI 848 - HC - Income TaxRejection of registration u/s 12A of the Act – Nature of activity – Charitable or not – Held that:- It is not clear as to what exactly is the object and aim of the trust in mentioning minorities and backward classes of Tellicherry Municipality and its suburbs - no material is brought on record which minority groups in Tellicherry Municipality represent religion, language or culture - In the absence of details by referring to minorities living in Tellicherry Municipality and its suburbs, the real intention of using the word 'minorities' in the trust deed, according to the authorities, with reference to a particular religious minority seems to be justified. If it is a charitable and religious trust, especially in the case of charity, having regard to several restrictions under Section 13 (1) of the Act (especially 13(1)(b)) if benefit is restricted to a particular religion or class, exemption benefit will not be attracted - as long as 12A registration is in existence, the assessee can claim the benefit - Without 12A registration, even if the assesee were to spend money on charitable activities, they are not entitled for the benefit - registration u/s 12A is like an entry document to secure exemption - The observation of the authorities with reference to the contents of the trust deed persuaded them to opine that the meaning and import of the word 'apply', having regard to the denominational character of the trust on the holistic approach to conclude that the intention was not to extend the benefit to all minorities, but to a particular religious minority – Decided against Assessee.
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