2014 (11) TMI 1220 - AT - Income Tax

Registration u/s 12A denied - denied the benefit of registration u/s.12A on the ground that some of the objects are not charitable in nature and mainly intended for the benefit of a particular religious community - HELD THAT:- We find the Hon’ble Supreme Court in the case of CIT Vs. Andhra Chamber of Commerce [1986 (3) TMI 1 - SUPREME COURT] has held that an object beneficial to a section of the public is an object of general public utility. The expression “General Public Utility”, however, is not restricted to objects beneficial to the whole of mankind. To serve a charitable purpose, it is not necessary that the object should be to benefit the whole of mankind or even for persons living in a particular country or province. It is sufficient if the intention is to benefit a section of the public as distinct from specific individuals.

We in the case of CIT Vs. Chandra Charitable Trust [2006 (7) TMI 96 - HIGH COURT , GUJARAT] has held that if the objects of the assessee trust are not only to propagate Jainism or help and assist maintenance of temple, Sadhus, Sadhvis, Shraviks and Shravaks and other goals are also set out in the trust deed, the trust is a charitable as well as a religious trust and section 13(1)(b) would not be applicable.

We are of the considered opinion that the assessee trust is entitled to registration u/s.12A of the I.T. Act. We therefore set aside the order of the CIT and direct him to grant registration u/s.12A of the I.T. Act to the assessee trust. Grounds raised by the assessee are accordingly allowed.