TMI Blog1998 (11) TMI 87X X X X Extracts X X X X X X X X Extracts X X X X ..... munication dated July 26, 1989, i.e., the impugned order, the petitioner was informed that the argument that the Brahmakshatriya community is not a religious community or religious caste has not been found correct. The Brahmakhshatriya community is a religious community or caste and, therefore, the case of the trust is hit by the provisions of section 13(1)(b) of the Income-tax Act. It is urged by learned counsel for the petitioner that, though two dates were fixed for hearing, counsel could not remain present before the Commissioner. Written submissions had been made on March 27, 1989, before the decision by the Commissioner which has been referred to in the communication. However, no reasons have been spelt out in the communication to h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e been provided by the Commissioner in reaching his conclusion that "the Brahmakshatriya community is a religious community". We inquired from learned counsel for the Revenue whether any order giving reasons has been made on file inasmuch as annexure-G dated July 26, 1989, is only a communication at the direction of the Commissioner informing the petitioner of the result of his application. Learned counsel indicated that the file does not contain any reason except that the noting rejecting the application states that Brahmakshatriya community is a religious community, whether a given group of persons identifiable as community or caste constitutes a religious community or not depends on whether the origin or formation of such community is re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sible to reach a concrete conclusion. While considering an application for registration of a trust, the Commissioner must also make a clear distinction between the requirement of registration and the requirement for 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 A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a society with a bond of having system of beliefs or doctrine which is regarded as conducive to their spiritual well being. If a collective organisation is for other purposes, the fact that many of such community follow a common faith will not be a ground to hold it as a religious community. In other words, formation of community must have nexus with following a common faith. In this context, the Commissioner must first consider whether the name "Brahmakshatriya" by itself denotes any religion or origin of community has been founded on adherence to any religious faith. Be that as it may, as the order made by the Commissioner is not at all a speaking order and affects the rights of the petitioner adversely, the order cannot be sustained. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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