TMI Blog2015 (9) TMI 186X X X X Extracts X X X X X X X X Extracts X X X X ..... y requirements of registration as provided under section 12A of the Act. See CIT vs. Leuva Patel Seva Samaj Trust [2015 (9) TMI 109 - GUJARAT HIGH COURT] CIT’s objection quoting caste issue would qua some of assessee’s objects would be relevant only during sec. 11 proceedings and not at the impugned registration stage. The assessee’s sole substantive ground succeeds. - Decided in favour of assessee. - ITA No. 861/Ahd/2012 - - - Dated:- 20-8-2015 - Shri G. D. Agrawal and Shri S. S. Godara, JJ. For The Assessee : Shri Mukund Bakshi, A.R. For The Revenue : Shri R. I. Patel, CIT-D.R. ORDER PER : S. S. GODARA, JUDICIAL MEMBER:- This assessee s appeal, arises from order of the CIT-III, Baroda dated 27-05-2011 in ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to provide medicines, injection and to provide financial aid in cash in the nature of equipments for treatment and to arrange blood donation camp. (7) To carry out cultural activities such as a collective circular dance, dram, group marriage as well as sports, tour-picnic discussion meeting and for the encouragement of students to take initiative of prize/trophy distribution. (8) The trust will help the victims of flood, famine, earthquake, and epidemic and other natural calamities or human created problems, accidental problems in whatever nature and to extend assistance to the needy people of maintenance, cloths and dwellings and for any other requirement. (9) To implement a scheme of loan, scholarship for the purpose of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... war Samaj alone and not to the general public or society as a whole. In the circumstances a letter dated 4.5.2011 was written to the trust to show cause as to why the approval of registration should not be refused to it. The case was fixed for hearing on 16.5.2011. On the date of appointment the trust filed a reply dated 16.5.2011. The contents of the letter is as under: We will do the Activity for general public and we started our Activity with providing help for books to student from another community. Further we have started one water hut at Raopura Road from that public are taking benefit, That you can verify from Jayesh Bhai Chauhan. Ph No. 2438725 In past we have organized Blood camp so many times that benefits goes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eople of earthquake. Further, in the letter itself the trust has mentioned that it had no proof for distribution of food packets to the flood victims. 5. From the above discussion and also from the object, of the trust it is clear that the trust has been established to provide benefit only to a particular caste and not in the interest of society as a whole or public at large, and therefore the trust has not engaged in any activities. Though the other details submitted by the trust are satisfactory, the genuineness of the trust, is in doubt for not having created for any activities to the general public as a whole from the date of its inception. 6. In view of the foregoing, I am of the considered view that this is not a fit case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Deed, any adult person after paying prescribed fees can become a member of the said trust. This trust will perform without any discrimination in Leuva Patel caste and will follow non-political and secular objects of the trust. The first object of the trust is to carry out activities for the purpose of development and improvement of the education. The ITAT, Ahmedabad Bench in case of Leuva Patel Nutan Kelwani Mandal v. ITO, 12 ITD 276 (Ahd.) on identical set of facts held that the case of the assessee could not brought within the provisions of section 13(l)(b) in view of the Explanation 2 to the said section. Apart from this, it was also held that the Leuva Patel community consists mainly of agriculturists. Such community cannot be dubed as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... claiming tax benefit. The latter question falls squarely to be considered by the Assessing Officer. Section 12A neither makes registration of trust as condition precedent for claiming benefit under sections 11 and 12 read with section 13, nor registration obviates enquiry into the conditions envisaged under section 13 by the Assessing Officer before the tax benefit can be allowed. Mere filing of application for registration of the trust is enough to claim benefit of its income under sections 11 and 12 and jurisdiction to the Assessing Officer to enquire into that claim, which also includes question as to who are the beneficiaries of trust. On other conditions being fulfilled, the exemption must follow whether registration is accorded or not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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