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TMI Blog2024 (6) TMI 801X X X X Extracts X X X X X X X X Extracts X X X X ..... under Rule 17A of the I.T. Rules, 1962. The ld CIT(E ) observed that Rule 17A(1) of the Income Tax Rules prescribes the different forms to be filed for making application under various sub-clauses of clause (ac) of sub-section (1) of section 12A of the Act for registration of a charitable or religious trust on institution which stipulates as under. "17A.(1). An application under sub-clause (i) or sub-clause(ii) or sub- clause(iii) or sub-clause(iv) or sub-clause(v) or sub-clause(vi) of clause (ac)of subsection (1) of section 12A for registration of a charitable or religious trust or institution (hereinafter referred to as 'the applicant') shall be made in the following Form, namely: 1. Form No, 10A in case of application under sub-clause (i) or (vi) of clause (ac)of sub-section (1) of section 12A to the Principal Commissioner or Commissioner authorised by the Board; or 2. Form No. 10AB in case of application under sub-clause (ii) or (iii) or (iv) or (v) of clause (ac) of sub-section (1) of section 12A to the Principal Commissioner or Commissioner under the said clause." 4. The ld CIT(E ) refers Rule 17A(2) of the Income Tax Rules which lists the documents, which shal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sub-section (4A) of section 11 and the applicant has been in existence during any year or years prior to the financial year in which the application for registration is made, self-certified copies of the annual accounts of such business relating to such prior year or years (not being more than three years immediately preceding the year in which the said application is made) for which such accounts have been made up and self-certified copy of the report of audit as per the provisions of section 44AB for such period; (j) self-certified copy of the documents evidencing adoption or modification of the objects; (k) note on the activities of the applicant." 5. Therefore, a notice was issued to the assessee on 07/11/2022, with a request to furnish detailed note on the activities actually carried out by the trust as well as certain details/documents as mentioned therein. The above-mentioned inquiry about the actual activities of the trust is necessary in view of the mandatory provisions of the procedure for registration u/s 12AB of the Act, 1961, which is reproduced below: "12AB. (1) The Principal Commissioner o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts in the interest of the Sunni community brothers, prosperity and for the social, economic and religious education and knowledge, and (6.4) to maintain and preserve the affection, sentiment and association among all the Muslim people of the community". 7. Therefore, ld CIT(E ) noted that it is essential to analyse as to whether the provision of section 13(1 )(b) of the Act, is applicable to the assessee. 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. 8. 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 if the trust or institution is created or establis ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o 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 are of the considered opinion that the respondent-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 to the respondent-trust and thereby, it would be eligible to claim exemption under Section 11 of the Act." 11. From the above referred objects of the assessee, the ld CIT(E) noted that it is not a religious trust, but it is religious cum char ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tative (ld. CIT-DR) for the Revenue relied on the findings of the ld. CIT(E). 16. 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. We note that ld CIT(E ) denied the registration mainly on the reason that assessee, is not a religious trust, but it is religious cum charitable trust and ld CIT(E ) also gone through the objects, which are in the nature of charitable but the same is restricted to benefit of a particular religious community or caste "SUNNI MUSLIMS" and therefore the provision of section 13(1)(b) of the Act, would be applicable to the assessee and therefore the assessee would not be eligible for exemption under section 11 of the Act. We have gone through the objects of the assessee-trust and noted that all the objects are not restricted to particular religious community or caste "SUNNI MUSLIMS". For example, following objects of the trust are not restricted to "SUNNI MUSLIMS": 4. To make effort for abolishing the social evils giving ..... X X X X Extracts X X X X X X X X Extracts X X X X
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