TMI Blog2023 (7) TMI 799X X X X Extracts X X X X X X X X Extracts X X X X ..... ch needs examination by CIT(E). Assessee-trusts have other objects like: to help poor, to give medical aid and to help public in general, in case of fire, flood and earthquake. Question before us is that since the assessee trust is an old trust, and whether in past, these activities were carried on by the assessee-trust or not, is not ascertainable by us from the paper book filed by the assessee. Considering these facts, we are of the view that entire lis of the assessee should be remitted back to the file of the ld CIT(E ) for examination - Appeal allowed for statistical purposes. - ITA No. 214/SRT/2023 And ITA No. 265/SRT/2023 - - - Dated:- 17-7-2023 - Shri Pawan Singh, JM And Dr. A. L. Saini, AM For the Appellant : Shri Hiren Vepari, CA For the Respondent : Shri S. M. Keshkamat, CIT(DR) ORDER PER DR. A. L. SAINI, AM: Captioned two appeals filed by different assessee-trusts, are directed against the separate orders passed by the Learned Commissioner of Income Tax (Exemption), Ahmedabad [in short the ld. CIT(E) ], wherein the Ld. CIT(E) has denied the registration under section 12AB of the Act on the reason that charitable activities of the trust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ct in his order. Then after, ld CIT( E ) did inquiry about the actual activities of the trust, which was necessary in view of the mandatory provisions of the procedure for registration u/s 12AB of the Income Tax Act, 1961. The Ld. CIT(E) issued a notice to the assessee and noted that it is essential to make analysis, as to whether the provisions of section 13(1)(b) of the Act is applicable to the assessee or not. 6. The ld CIT(E ) states in his order that section 13(1) (a) of the Act stipulates that provisions of section 11 and 12 would not apply to an assessee, where any part of the income from the property held under a trust for private religious purposes, which does not ensure for the benefit of the public. Therefore, the provision of section 13(1)(a) of the Act is applicable only when any part of income is from the property held under a trust for private religious purposes which does not ensure for the benefit of the public. Further section 13(1)(b) of the Act stipulates that provisions of section 11 and 12 would not apply 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 i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ration u/s 12A ought to be granted in terms of section 13(1)(b) of the Act, in view of the decision of the Hon'ble SC in the case of CIT vs Dawoodi Bohara Jamat, reported in 43 taxmann.com 243 (supra), is in direct contradiction to above referred finding of the Hon'ble SC in its decision in Para(45) reproduced above. 9. Further, the Hon'ble Supreme Court in the said case of CIT vs Dawoodi Bohara Jamat (supra), which was composite in nature, after analyzing the various objects of the trust, held that two of its objects provide for the activities completely religious in nature and restricted to the specific community of the assessee trust, are objects with religious purpose only. However, the Hon'ble Apex Court held that other four objects of the assessee trust was charitable in nature and finally held that the trust is a charitable and religious trust which does not benefit any specific religious community and therefore, it cannot be held that section 13(1)(b) of the Act would be attracted and hence the trust would be eligible to claim exemption u/s 11 of the Act. In concluding para the Hon'ble Apex Court held has under: 50. In that view of the matter, we ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ly reiterated the stand taken by the Ld. CIT(E), which we have already noted in our earlier para and is not being repeated for the sake of brevity. 15. We have heard both the parties and carefully gone through the submissions put forth on behalf of the assessee along with the documents furnished and the case laws relied upon, and perused the facts of the case including the findings of the ld. CIT(E) and other material brought on record. The ld Counsel argued before us that the objects of the assessee trust are purely charitable without discrimination of creed, nationally and place except name, since it is started by Sindhis and activities of trust were not doubted by the Ld. CIT(E). The ld Counsel also argued that section 13(1)(b) of the Act, does not apply to the assessee-trust, because the school is run by assessee- trust, which is open for all sections of the society/caste and said School, is not confined to a particular caste, therefore the Ld. CIT(E) should not have denied the registration. 16. A part from this, we have gone through the paper book filed by the assessee and noted that assessee made final registration application with Form No.10AB, on 26.09.2022, well be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts like: to help poor, to give medical aid and to help public in general, in case of fire, flood and earthquake. However, the question before us is that since the assessee trust is an old trust, and whether in past, these activities were carried on by the assessee-trust or not, is not ascertainable by us from the paper book filed by the assessee. Considering these facts, we are of the view that entire lis of the assessee should be remitted back to the file of the ld CIT(E ) for examination of these facts and then after to pass the order in accordance with law. Accordingly, we set aside the order of ld CIT(E ) and remit the issue back to the file of the ld CIT( E), to adjudicate the afresh. 19. In the result, appeal filed by the assessee-trust (in ITA No.265/SRT/2023 -Sindhu Seva Samiti, is allowed for statistical purposes. 20. Now, coming to other assessee-trust, in ITA No.214/SRT/2023, Mar Baselius Orthodox Syrian Church, we note that ld CIT(E ) has passed the order on the same line, as we have noted in the assessee-trust, in ITA No.265/SRT/2023 -Sindhu Seva Samiti, above. We have also gone through the objects of Mar Baselius Orthodox Syrian Church trust and the same is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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