TMI Blog2014 (6) TMI 477X X X X Extracts X X X X X X X X Extracts X X X X ..... procedural requirements - Section 13 sets out the circumstances in which the exemption would not be available to a religious or charitable trust - One restriction is where the trust or institution is created or established for the benefit of any particular religious community or caste - assessee having failed to discharge the burden, the Tribunal was justified in confirming the decision of the Commissioner – thus, no substantial question of law arises for consideration – Decided against Assessee. - Income Tax Appeal No. - 64 of 2014 - - - Dated:- 24-3-2014 - Hon'ble Dr. Dhananjaya Yeshwant Chandrachud,CJ And Hon'ble Dilip Gupta,JJ. For the Appellant : S. K. Garg, Ashish Bansal For the Respondent :- C.S.C. ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent of hospitals, dharamshalas, libraries and schools. Since all the activities related to a particular community, namely the Agrawal community, the application was dismissed. The assessee carried the matter in appeal before the Income Tax Appellate Tribunal. The Tribunal has, during the course of its judgment dated 31 October 2013, specifically recorded the admission of the learned counsel appearing on behalf of the assessee made in the course of the submissions. For convenience of reference, it would be necessary to extract the specific admission recorded in the order of the Tribunal in that regard: (i) During the course of arguments, the ld. counsel for the assessee admitted that the assessee did not file any evidence or material bef ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... this aspect is duly taken into account, it is evident that both the Tribunal and in the first instance the CIT held that the activity undertaken by the trust during the financial year in question related only to the Agrawal community and absolutely no documentary evidence was furnished to the effect that the dharamshala had been put to use of members other than those belonging to that particular community. However, in all fairness, the Tribunal has granted liberty to the assessee to move a fresh application for registration before the CIT so as to establish that the objects of the society were charitable or religious in nature and that its activities were genuine. Section 12AA(1) of the Income Tax Act, 1961, lays down a procedure whi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ributions received by the said trust are the subject-matter of exemptions from the taxation under the Act. Sections 12A and 12AA detail the procedural requirements for making an application to claim exemption under Sections 11 or 12 by the assessee and the grant or rejection of such application by the Commissioner. A conjoint reading of Sections 11, 12, 12A and 12AA makes it clear that registration under Sections 12A and 12AA is a condition precedent for availing benefit under Sections 11 and 12. Unless an institution is registered under the aforesaid provisions, it cannot claim the benefit of Sections 11 and 12. Section 13 enlists the circumstances wherein the exemption would not be available to a religious or charitable trust otherwise fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hall be duly considered in accordance with law on the basis of the materials that will be produced by the assessee. Learned counsel appearing on behalf of the assessee relied upon an earlier judgment of the Supreme Court in Ahmedabad Rana Caste Association Vs. Commsisioner of Income Tax2. The judgment of the Supreme Court may not be of much assistance to the appellant since the position under the 1922 Act was materially different from the Act of 1961, as would be apparent from the following extract of the judgment: 4... Under the Act 1922 a trust for the benefit of any particular religious community or caste was entitled to exemption but under the Act of 1961, a charitable trust which is created for such benefit on or after the fi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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