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2019 (1) TMI 1129 - AT - Income TaxRejection of application for granting registration u/s.12AA - objects of the Trust are only for benefit of Jain community and therefore, section 13(1)(b) of the Act is attracted - membership of the Trust is limited to the people who are Jain Swetamber - Donations, including corpus donations received in cash with no details of donors are mentioned in the receipt book - Held that:- We take guidance from the decision of the Rajasthan High Court in the case of CIT Vs. Vijay Vargiya Vani Charitable Trust (2015 (2) TMI 671 - RAJASTHAN HIGH COURT) wherein it has been held that at the time of granting registration u/s.12AA of the Act, the Ld. CIT(Exemption) should only look into the objects of the Trust. The issue regarding satisfaction of genuineness of the activities of the Trust is not a matter to be looked into at the time of granting registration u/s.12AA of the Act. That may be considered and decided accordingly at the time of assessment proceedings. As perused the objects of the Trust placed in the paper book. We find that the assessee Trust has objects which are both charitable and religious in nature. Therefore, it can safely be said that assessee Trust is a composite Trust and not purely for charitable purposes. It is the Trust for both charitable and religious purposes. In such circumstances by applying the decision of Commissioner of Income Tax Vs. Barkate Saifiyah Society (1993 (11) TMI 13 - GUJARAT HIGH COURT), section 13(1)(b) is also not applicable in the case of the assessee Trust herein. In examination of facts on records, analyzing the judicial pronouncements placed before us, we, therefore, set aside the order of the Ld. CIT(Exemption) and direct the grant of registration u/s.12AA of the Act to the assessee. - decided in favour of assessee.
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