TMI Blog2012 (2) TMI 324X X X X Extracts X X X X X X X X Extracts X X X X ..... Appellant by : Shri Rajiv Sigani Respondent by : Shri Sunil Mathur ORDER PER SHRI N.L. KALRA, A.M. 1. The assessee has filed appeals against order of ld. CIT u/s 12AA and 80 G of the I.T. Act. First we will take up appeal against order u/s 12AA of the I.T. Act. The ground of appeal raised by the assessee is as under: In the facts and circumstances of the case and in law the ld. CIT has erred in not granting the registration u/s 12AA of the Income Tax Act, 1961. The action of the ld. CIT is illegal, unjustified, arbitrary and against the facts of the case. Relief may please be granted by directing the ld. CIT to grant the registration u/s 12AA. 2. The Trust filed an application in form No.10A for seeking registr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that the trust has started charitable activities but these are for the benefit of a particular religious community i.e. Jain which is in violation of provisions of section 13(1)(b). The case is not covered in Explanation-2 of section 13(1)(b) also. Therefore it is not eligible for registration u/s 12AA of the Act, hence its application is hereby rejected. 4. Before us the ld. A/R has filed the written submissions as under: Conditions relevant at the time of approval u/s 12AA: The Commissioner, on receipt of an application for registration of a trust or Institution made under clause (a) of section 12A, shalla Call for such documents or information from the trust or institution as the thinks necessary in order to satisfy himself ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of Muslims Foundation Vs. Director of Income Tax (Exemptions) (2011) 136 TTJ (Hyd)(UO)66 ITO, Kota Vs. Emmanuel Bible Institute Samiti, Kota ITA No.866/JP/2010 The Society of Presentation Sisters Vs. Income Tax Officer (2009)125 TTJ (Coch) (TM) 909 In view of above the action of ld. CIT of not granting the registration under section 12AA and 80G(5) of the Act is unjustified and ld. CIT be directed to grant approval u/s 12AA and 80G. 5. The ld. D/R has also filed written submissions and these are reproduced as under: In this respect, it is submitted that at the time of granting registration u/s 12AA, the CIT is required to satisfy himself about the objects of the trust and the genuineness of activities. While satisfying himself abo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ers of Dhakad community were less and those from others were many times more than the members of Dhakad community. Hon ble High Court first held that the assessee was a charitable trust and not a religious trust and therefore, it would be liable for coverage u/s 13(1)(b). Secondly, Hon ble High Court held that taking of concessional or token charges from Dhakad community meant that the trust was created for the benefit of a particular religious community or caste. Therefore, this assessee trust violated the provisions of section 13 (1)(b) and was not eligible for registration u/s 12AA. In the case of the assessee trust under consideration in this appeal though the trust is created for charitable purposes and its objects are open for the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trustees make some violation in some particular year but such violation will not effect the registration. It is not the case of revenue that students were not belonging to poor families. It is not established that trust did not give scholarship to poor students of other caste, in case such applications were filed. 8. Even religious trusts are entitled for registration. Reference is made to the following decisions: CIT V Shri Digamber Jain Mandir 29 DTR 65 (Raj) ITO Kota V Emmanuel Bible institute Samiti Kota 140 TTJ 508 (JP) Shiya Dawoodi Bohra Jamat V CIT 133 ITD 271 (Ahm) 9. The Hon ble jurisdictional High Court in the case of DCIT V/s Cosmopolitan Education Society 244 ITR 494 has referred to the observation of ld. CIT (A) in w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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