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2015 (7) TMI 1327 - AT - Income TaxCharitable institution registration u/s.12AA withdrawn - assessee-society to be formed for the benefit of the Christian community - HELD THAT:- What is meant by or the scope of the words ‘primarily for Catholics’, to which he admitted is to imply a clear preference to the practitioners of the said faith in regard to the conduct and affairs of the institution, including the admission thereto and its management, even as sought to be clarified per its Charter. Referring to words ‘secular and scientific’ as appearing in clause 3(b)(supra) of the object clause. That, to our mind, would be of little relevance inasmuch as the same concerns the nature or the qualitative aspect of the education, while the issue or the aspect being considered by us is the identity of the recipient of the education, i.e., who stand to benefit therefrom and to whom the same is targeted, i.e., its beneficiary. In this context, the expression ‘in particular’ came for the consideration by the Apex Court in CIT vs. Kamla Town Trust [1995 (11) TMI 1 - SUPREME COURT]. In the facts of that case the object of the trust included construction of houses for workmen in general and, in particular, for the workmen, staff and other employees of the settler company - the provision relating to workmen in general did constitute a charitable object, the words ‘in particular for the workmen of the company’, negatived its public character, so that the trust could not be considered to have been established wholly for charitable purposes. As consider the issue as to if the assessee could be denied registration in view of attraction of section 13(1)(b) of the Act, i.e., considering that the same is expressed to preclude sections 11 and 12 of the Act. We consider it as so inasmuch as the same forms an abiding or defining feature of the applicant, in which case, to what effect or purpose, one may ask, is the registration, i.e., if not toward grant of exemption u/ss. 11 and 12 of the Act. In the case of CIT vs. Dawoodi Bohra Jamat [2014 (3) TMI 652 - SUPREME COURT] wherein the Hon’ble Court approved the applicability of s. 13(1)(b) as a valid ground while considering the issue of registration u/s. 12AA of the Act inasmuch as registration is a prerequisite for availing the benefit of ss. 11 & 12 (pg. 41), approving of registration on a finding of non-applicability of s. 13(1)(b). In the facts of the present case, we have found the assessee-society to be formed for the benefit of the Christian community, and which therefore could definitely form a ground for withdrawal of its registration inasmuch as its income is liable to be excluded for consideration u/ss. 11 and 12 - Decided against assessee.
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