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TMI Blog2024 (10) TMI 1559X X X X Extracts X X X X X X X X Extracts X X X X ..... Tax Act, 1961 [hereinafter referred to as "the Act"]. Facts of the Case: 2. The assessee, filed an application for registration under section 12AB of the Act in Form No. 10AB on 31.03.2022, declaring its aims and objectives primarily related to educational, social, and economic welfare activities. The CIT (Exemption), after issuing multiple notices, rejected the registration application, citing that the objects of the Trust were confined to the "Chhasath Prajapati Community", thus attracting the provisions of section 13(1)(b) of the Act, which disallows exemption for trusts benefiting a particular community. Additionally, it was noted that the assessee failed to provide certain details as called for by the CIT (Exemption). 3. The assesse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te details and documents requested during the registration proceedings. The DR emphasized that the noncompliance with notices calling for additional documents reflected poorly on the genuineness of the activities of the Trust. The learned Authorized Representative (AR) for the assessee countered the DR's arguments, stating that the assessee had indeed uploaded all the required documents online through the Income Tax Department's portal as per the notices issued. The AR further contended that the CIT (Exemption) did not specify any particular document or detail that was not provided, and the rejection was primarily based on a misunderstanding of the nature of the Trust's activities. The AR also placed reliance on the judgement of the Hon'ble ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ara Jamat (supra) and we find that the ld. CIT(Exemption) has totally mis-appreciated the decision rendered by the Hon'ble Apex Court Jamiatul Banaat Tankaria Vs. CIT(E) AY : 2022-23 in the said case. The Hon'ble Apex Court, we find, in the said case had categorically held that Trust with charitable objects, which existed for the benefit of a particular religious community qualified as charitable entity serving the public at large and this was sufficient for grant of registration under section 12A of the Act, and the provisions of section 13(1)(b) of the Act would be attracted only at the time of granting exemption to the assessee, wherein if it was found that the trust existed for the benefit of a particular religious community onl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s cannot be said to benefit only a particular religious or caste-based community. 6.4. The registration under section 12AB of the Act is merely a recognition of the charitable status of the Trust. The application of section 13(1)(b) of the Act would only arise at the stage of assessment when determining exemption under section 11, depending on the actual income and activities of the Trust. In view of the above findings and judicial precedents, we hold that the CIT (Exemption) erred in rejecting the application for registration under section 12AB of the Act. Accordingly, the order of the CIT (Exemption) is set aside, and the CIT (Exemption) is directed to grant registration to the assessee Trust as applied for. 7. In the result, the appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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