TMI Blog2008 (8) TMI 885X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT [ 2000 (11) TMI 99 - JAMMU AND KASHMIR HIGH COURT] , and a look thereat, makes it clear that the beneficiaries of the trust were confined to Muslim community intelligentsia. In the case in hand, even from reading of two clause 6 and 13, as quoted by learned CIT, it does not show, that the trust was created or established for the benefit of any particular religion, community, or caste. At best, clause 13 shows to be providing for some preference, in favour of the persons belonging to a particular community. So far clause 6 is concerned, that does not talk anything about as to for whose benefit the trust has been created. On perusal of trust deed shows a detailed list of objects of the trust, and all those objects in categorical terms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... issuing notice u/s 148, and in earlier years also, the amount was held to be received in the corpus fund. Therefore, Tribunal has rightly examined the controversy. It is significant to note that the Tribunal has further found that AO cannot initiate reassessment proceedings, simply to verify the contents of the return, unlike before it was vested in him in making regular assessment. It was found that the time-limit available for issuance of notice and making assessment u/s 143(3) had expired, but then, on that count, he cannot assume the jurisdiction by venturing to make assessment u/s 148. Even after hearing learned counsel for the parties at length, we are satisfied that the reasons given by the Tribunal are in accordance with law - A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tration under section 12AA was granted to the trust on 14th Aug., 1997. The return of income, for the year under consideration (financial year 1997-98), corresponding to asst. yr. 1998-99, was filed on 31st March, 2000, declaring nil income. The return was duly accompanied, with the audit report in Form No. 10B and return was assessed under section 143(1)(a) on 21st March, 2000. However, thereafter, notice under section 148 was issued on 28th May, 2001, on the basis of reasons recorded, and forming part of the assessment order, being as under : During the year under consideration, the trust has shown receipt of donation of ₹ 30,16,598 in the corpus fund. Whereas the amount has been received without specific directions, therefore, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not relate to clause (b), while clause (a) provides that the person in receipt of the income has made application for registration of the trust or institution in the prescribed manner before first day of July 1973, or before expiry of one year from the date of creation of trust, or establishment of the institution, whichever is earlier, and such trust/institution is registered under section 12AA. Then, the proviso to this clause deals with the situation in cases where application is made after the expiry of said period, and provides that in cases of delay, the provisions of ss. 11 and 12 shall apply from the date of creation of the trust, if the CIT, for reasons to be recorded in writing, is satisfied that the person in receipt of income, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the public; (b) in the case of a trust for charitable purposes or a charitable institution created or established after the commencement of this Act, any income thereof if the trust or institution is created or established for the benefit of any particular religious community or caste. 7. Combined reading of two clause (a) and (b ), makes it clear, that clause (a) comprehend cases, where the income from the property, held under a trust for private religious purposes, which does not enure for the purposes of public, while clause (b) provides for cases, where the trust for charitable purposes, or charitable institution, is created and established for benefit of any particular religion, community or caste. The learned CIT while discu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ay the least, the ineligibility provided in section 13(1)(a) or (b) is not attracted. The question No. 2 is accordingly answered against the Revenue and in favour of the assessee. 11. Coming to question No. 1, a look at the judgment of the Tribunal shows that the learned Tribunal has proceeded on two judgments of Hon'ble the Supreme Court, being in ITO Ors. vs. Lakhmani Mewal Das [1976] 1976 CTR (SC) 220 : [1976] 103 ITR 437 (SC), and Ganga Saran Sons (P) Ltd. vs. ITO Ors, [1981] 22 CTR (SC) 112 : [1981] 130 ITR 1 (SC). In Lakhmani Mewaldas's case (supra), it has been held, that the reasons, which led to the formation of the belief, contemplated by section 147(a), must have a material belief on the question of escapement of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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