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TMI Blog2022 (9) TMI 1637X X X X Extracts X X X X X X X X Extracts X X X X ..... he case properly. The rejection order passed by CIT (Exemption) u/s 12AA(1)(b)(ii) is arbitrary, illegal and not justified. The appellant is entitled for registration u/s 12A.; 2. The appellant reserves the right to amend, modify or add any of the grounds of appeal. 2. Facts in brief are that the assessee is a society registered under the Society Registration Act, 1973 before the Registrar of Societies, Chhattisgarh on 27.08.2012. The assessee applied for registration u/s. 12AA of the Act in Form No. 10A. On verification of the objects and activities of the assessee society, the CIT(E) found that the assessee society is established for a particular community and almost objects are for the benefit of a particular community and carr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the source of application of funds by the assessee society is transparent, accounted and for the interest of public. Therefore, the ld. AR submitted that considering the objects and activities of the society, the assessee society is entitled for registration u/s. 12AA of the Act. Also, rejection of the application of assessee society by triggering provisions of section 13(1)(b) of the Act was not called for, since, explanation 2 of the section 13 explains that "A trust or institution created or established for the benefit of Scheduled caste, backward classes, Scheduled Tribes or women and children shall not be deemed to be a trust or institution created or established for the benefit of a religious community or caste within the meaning of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on. Moreover, Ld. CITDR has drew our attention for provisions of section 12AA(1)(a) and (b) and argued that the CIT(E) was well within his powers and it his duty to call for all the necessary documents and information from the assessee trust or institution as he thinks necessary in order to satisfy himself about the genuineness of activities of the trust or institution and may also make such enquiries as he may deem necessary in this behalf. After satisfying himself about the object of the trust or institution and the genuineness of its activities, he shall pass an order in writing registering the trust or institution or if not satisfied shall pass an order in writing refusing to register the trust or institution. On this note Ld CITDR has ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le community/caste. (d) Copy of accounts produced before the Ld CIT(E) also does not show any expenses to prove such claim by the applicant that the assessee society is doing charitable work for Satnami Samaj as well as for others. 7. To decide the above raised issues after carefully hearing both the parties, we have gone through the paper book of the assessee trust showing brief activities of the society at page 16-88 which shows that the assessee society is doing charitable activities for others also. 8. Regarding duties of CIT(E) to be performed with respect to procedure for registration u/s 12AA(1)(a) and (b) Hon'ble Rajasthan High Court in the case of CIT Vs. Vijay Vargiya Charitable Trust in ITA No. 17/2014 has categorica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment proceedings. 10. The Hon'ble Gujarat High Court in the case of Commissioner of Income Tax Vs. Barkate Saifiyah Society, reported in (1995) 213 ITR 492 (GUJ)/(1995) 78 TAXMAN 6, has held that the provisions of section 13(1)(b) will apply only to the Trust which are purely for charitable purposes. If the assessee Trust has objects in both charitable and religious in nature, in such Trust, Section 13(1)(b) is not applicable. On perusal of the bye-laws of the assessee society it is evident that the assessee society has charitable as well as religious objects, therefore, squarely covered by the judgment of the Hon'ble Gujarat High Court in the case of Barkate Saifiyah Society (supra). 11. In view of the aforesaid discussion and on the b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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