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TMI Blog2012 (8) TMI 680X X X X Extracts X X X X X X X X Extracts X X X X ..... liance on irrelevant consideration of section 11 to 13, for the purpose of denying registration u/s 12AA of the Act. It was, further, highlighted by learned A.R. that the definition of charitable purpose, as contemplated u/s 2(15) of the Act, has been completely ignored by the learned CIT. Similarly, it was stated that the objects of the assessee appellant are in consonance with the definition of charitable purposes, as provided u/s 2(15) of the Act. In view of this, it was prayed that the impugned order passed by learned CIT be quashed and CIT be directed to grant registration u/s 12AA of the Act. 2. Learned 'D.R.' on the other hand placed reliance, on the order of CIT. 3. We have carefully perused the rival submissions, facts of the cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r from the income of other persons. The learned CIT further observed that sections 12A and 12AA of the Act are machinery provisions that will draw colour from the substantive stipulations, positive or negative, in sections 11, 12 and 13 of the Act. The learned CIT continued to observe that section 13(1)(b) of the Act provides that in the case of a trust or charitable institution created or established for the benefit of a particular religious community or caste, no income will be excluded from the total income. It was, further, observed by the learned CIT that provisions of section 11 and 12 cannot be extended to an institution established for the benefit of a particular religious community or caste. The learned CIT also observed that in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... play. Ss. 11 to 13 thus have to be read together. Ss. 12A and 12AA are machinery provisions that will draw color from the substantive stipulations, positive or negative, in Ss. 11, 12 and 13. 4.2 S. 13(1)(b) provides that in the case of a trust or charitable institution created or established for the benefit of a particular religious community or caste no income will be excluded from the total income. Thus, provisions of S. 11 and 12 cannot be extended to an institution established for benefit of a particular religious community or caste. In the instant case, the objects very clearly show that the purpose of the institution is to provide religious and other education to boys and girls of Muslim community. This is thus a case where S. 11 or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion mandated by law for grant of registration cannot be formed on the basis of such insubstantial material. 8. From the above discussion and documents on record the conditions for the grant of registration u/s 12AA of the Income-tax Act, 1961 are not met by the society. I accordingly reject the application u/s 12AA (1) (b) (ii) of the Income-tax Act, 1961." 5. In this context, it is pertinent to highlight that conditions for applicability of section 11 and 12 are contained u/s 12A of the Act. The procedure for registration are specified u/s 12AA of the Act. The provisions of section 12AA are reproduced as under: "12AA. (1) The Commissioner, on receipt of an application for registration of a trust or institution made under clause (a) [or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f section 11, 12 and 13 of the Act, for the purpose of denial of grant of registration u/s 12AA of the Act. Thus, it is clear that the impugned order passed by the learned CIT, is founded, on the consideration of irrelevant provisions of section 11, 12 and 13 of the Act, which are operative and relevant, in the course of assessment proceedings. The provisions of section 12A and 12AA are material and relevant, for the purpose of granting registration u/s 12AA of the Act. Needless to say that it is well settled legal proposition that the registration proceedings u/s 12A read with section 12AA of the Act are not to be confused with the assessment proceedings wherein the provisions of section 11, 12 and 13 of the Act are applicable. The provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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