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2020 (11) TMI 959 - AT - Income TaxNon granting registration u/s 12AA - CIT-A denied the registration primarily on the ground that the object of the trust prima-facie appears to be religious in nature and there was no dissolution clause in the instrument creating the trust - HELD THAT:- The reasoning of the ld. Commissioner of Income Tax (Exemptions) that in the absence of dissolution clause the appellant trust does not entitle for registration u/s 12AA of the Act is also required to be adjudged in view of the decision in the cases of (i) DCIT vs. Vanchhara Thirthadhipati Chintamani Paraswaprwabhu [2015 (5) TMI 5 - GUJARAT HIGH COURT] AND TAPAGACHHA SANGH MOTA [2015 (5) TMI 87 - GUJARAT HIGH COURT] Provisions of section 13(1)(b) of the Act had carved out exception to the exemption available u/s 11 and 12 of the Act. One of those exception is that the exemption u/s 11 and 12 would not be available in case any income of trust or institution is created or established for the benefit of any particular religious, community or caste. Hon’ble Supreme Court in the case of CIT vs. Dawoodi Bohra Jamat [2014 (3) TMI 652 - SUPREME COURT] after exhaustively referring to the earlier precedent, held that where the objects of a trust are both charitable and religious, the trust shall be eligible for registration u/s 12AA. The section only requires to be established that such charitable purpose is not for the benefit of a particular religious community or caste. That is to say, it needs to be examined whether such religious-charitable activity carried on by the trust only benefits a certain particular religious community or class or serves across the communities and for society at large. In the present case, ld. Commissioner of Income Tax (Exemptions) had obviously not embarked upon enquiry into this aspect. Appeal of the assessee stands allowed for statistical purposes.
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