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2016 (1) TMI 1073 - ITAT AHMEDABAD

2016 (1) TMI 1073 - ITAT AHMEDABAD - TMI - Registration under section 12AA denied - Held that:- Applying the ratio of Hon’ble Supreme Court Ahmedabad Rana Cast Association vs. CIT (1971 (9) TMI 8 - SUPREME Court), the decision of the Co-ordinate Bench in the case of Shree Vasupujya Swam Jain Derasar Trust vs. CIT, Valsad (2010 (8) TMI 937 - ITAT AHMEDABAD ) and the decision of co-ordinate Bench in the case of Shri Sayla Sukhadiya Parivar Trust vs.CIT(Exemption) (2015 (9) TMI 600 - ITAT AHMEDABAD .....

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ck to the ld. CIT(E) with the directions to re-examine the matter in the light of various decisions mentioned above as well as the objects of the trust stipulated in the trust deed so as to satisfy himself about the genuineness of objects of the trust and its activities and pass appropriate orders in accordance with law after allowing reasonable and proper opportunity of hearing to the assessee before adjudicating the issue. - Decided in favour of assessee for statistical purposes. - ITA No.467/ .....

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on of the assessee for registration under section 12AA of the Act. 2. Briefly stated the facts of the case are that the assessee is a religious trust newly created for the purpose of carrying on social charity, religious and educational activities. The appellant had made application for registration of the trust u/s 12AA of the Act in prescribed form no.10A on 24th July, 2014 along with all necessary documents including registration certificate, trust deed, PAN Card, copy of Charity Commissioner .....

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main objects of the trust are welfare of Shri Ranpariya Solanki Sukhadiya Parivar Trust, social charity and religious works, to conduct educational activities by establishing school and colleges to motivate students by giving scholarships, welfare activities in the villages and other activities for the benefit of general public. The detailed objects of the trust are mentioned in the trust deed available from pages 19 to 30 of the Paper Book. The ld. AR further submitted that all the requirement .....

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for general public, the ld. AR submitted that the objects enumerated in the trust deed are not only for the specific community but the objects of the trust are also to provide benefit to general public and the same can be inferred from the trust deed. Further in support of the contentions made, ld. AR relied on the decision of Hon ble Supreme Court in the case of Ahmedabad Rana Cast Association vs. CIT (1971) 82 ITR 704, the decisions of the coordinate Bench in the case of Shree Vasupujya Swami .....

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the directions to examine, the matter and, therefore, the matter in this appeal may be restored to the file of CIT(Exemption). 6. We have heard the rival contentions and perused the material on record. As per the provisions of section 12AA the CIT(Exemption) has to call for such documents or information from the trust or institution as the things necessary in order to satisfy himself about the genuineness of the activities of the trust or institution and may also make such inquiries he may deem .....

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e registration is that as per his observation the applicant trust is established only for the benefit of a particular community and not for the benefit of general public. 7. Honble Supreme Court in the case of Ahmedabad Rana Cast Association vs. CIT (supra) has examined similar issue and the the observation thereof is reproduced below :- The assessee, an association of persons, held properties for various purposes including management of the movable and immovable properties of the Rana caste or .....

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section 11(1)(a) of the Income-tax Act, 1961, the beneficiaries constituted a section of the public. Held, that between the members of the Rana caste or community of Ahmedabad and thse who had to get admitted to that community according to custom and usage there was common quality which united them, namely, of being members of the Rana caste or community. The mere fact that a person of the Rana community who was not an original native of Ahmedabad had to prove his credentials according to the c .....

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of the public as distinguished from a specified individual is present. The section of the community sought to be benefitted must be sufficiently definite and identifiable by some common quality of a public or impersonal nature. 8. Similar issue came up before the co-ordinate Bench in the case of Shree Vasupujya Swam Jain Derasar Trust vs. CIT, Valsad in ITA No.4470/Ahd/2007(supre) wherein the trust was formed for a particular community i.e. Jain Swetambar and the co-ordinate Bench relying on th .....

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the ld. CIT declined registration on the ground that objects of the trust are not charitable. The ld. CIT has not specified as to which particular object is not charitable or is for a particular community or caste.. The main objects of the trust ,as placed before us on page 4 of the paperbook, are undisputedly religious in nature. Religious activities are also construed to be charitable activities as per the decisions in CIT vs. Radhaswami Satsang (1993) 201 ITR 493 (All) and Hazarat Pirmahomed .....

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the community sought to be benefited must be sufficiently defined and identifiable by some common quality of a public or impersonal nature. In view of the foregoing, we find merit in the undisputed contentions of the ld. AR on behalf of the trust and accordingly, restore the matter to the file of the ld. CIT with the directions to re-examine the matter in the light of various objects of the trust stipulated in the trust deed and after satisfying himself about the genuineness of objects of the tr .....

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