TMI Blog2015 (2) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... tax(Exemption) Hyderabad dated 19.3.2013, whereby he rejected the application filed by the assessee for registration under S.12AA of the Income Tax Act, 1961. 2. The assessee in the present case is a society which filed application for registration under S.12AA of the Act to the learned Director of Income-tax(Exemption) on 20.9.2012 in the prescribed form, viz. Form No.10A. On perusal of the details furnished by the assessee in support of the said application, the learned Director of Income-tax(Exemption) found that one of the main aims and objects of the assessee society was as under- 1. To organize and to establish schools, College Training institutions, Hospitals, Orphanages, Hostels and boarding house for the promotion of elementary education, higher education, Technical, Vocational, Professional education for the benefit of Christian minority community in particular and others in general. According to the learned Director of Income-tax(Exemption), going by the specific emphasis laid on a particular community in the last part of the aforesaid object clause, the assessee society was established mainly for the benefit of that particular community and the same therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t in the case of CIT V/s. Kamala Town Trust (supra), he contended that the assessee trust in that case was established particularly for the benefit of the workmen of the company, and since the beneficiaries of the trust were a well defined smaller class of employees or workmen of the company, the Hon ble Supreme Court held that the assessee in that case failed to meet the requirements of a general public charitable trust. He submitted that the assessee in the present case, on the other hand, is established for the benefit of Christian minority community, which represents the section of public and it, therefore, served an object of general public utility for charitable purposes, as held by the Hon'ble Supreme Court in the case of Ahmedabad Rana Caste Association V/s. Director of Income-tax(Exemption) (82 ITR 704) and Hon ble Allahabad High Court in the case of CIT V/s Surji Devi Kunji Lal Jaipuria Charitable Trust (186 ITR 728). 6. The learned counsel further contended that even if the assessee society is held to be established for the benefit of any particular religious community, as envisaged under S.13(1)(b)of the Act, and there is violation of the said provision, it is no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration, however, was refused by the D.I.T(Exemption) on the ground that as per one of the objects clause noted above, the assessee society was established for the benefit of people belonging to Christian minority community which was clearly in violation of Section 13(1)(b). However, as held by Hon'ble Supreme Court in the case of Ahmedabad Rana Caste Association (supra), an object beneficial to the Section of the public is an object of general public utility and to serve a charitable purpose, it is not necessary that the object should be to benefit the whole of mankind or all persons in a particular country or state. Explaining further, it was observed by the Hon'ble Apex Court that it is sufficient if the intention is to benefit a Section of the public as distinguished from a specified individual. Relying on this decision of Hon'ble Supreme Court in the case of Ahmedabad Rana Caste Association (supra), Hon'ble Allahabad High Court in the case of Surji Devi Kunji Lal Jaipuria Charitable Trust (supra) has held that trust created for giving medical aid, social welfare and upliftment of poor members of a particular community, viz. Vaish community, is, therefore, for ch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it of one community is an expenditure incurred on a public charitable object, still holds the field notwithstanding the provisions contained in Section 13(1)(b) since the definition of the term charitable purpose given in Section 2(15) continues to remain the same. The provisions of Section 13(1) are thus not directly relevant in this regard. On the other hand, the said Section begins with the words Nothing contained in Section 11 or Section 12 shall operate so as to exclude from the total income of the previous year of the person... which clearly envisages operation of Section 11 or Section 12 before the provisions of Section 13 can be applied or invoked in a given case. It also shows that the said provisions can be applied or invoked only at the time of computation of total income of the previous year of the person who is claiming exemption Under Section 11 or Section 12. Both these situations contemplated in Section 13 can arise only and only if registration Under Section 12A is granted to the said person. If the same is not granted and the person is refused the registration Under Section 12A, he would not be entitled to claim any benefit available Under Section 11 or 12 an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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