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TMI Blog2024 (11) TMI 1372X X X X Extracts X X X X X X X X Extracts X X X X ..... (5) of Income Tax Act, 1961 ('in short, the Act'). Both the appeals are interconnected, thus with the consent of parties, both the appeals were clubbed and heard together and are decided by common order for the sake of brevity. For appreciation of facts, the facts in ITA No. 763/Srt/2024 is treated as lead case. In this appeal, the assessee has raised following grounds of appeal: "1. On the facts and in circumstances of the case as well as law on the subject, the learned CIT(E) has erred in passing ex-parte order without giving reasonable and sufficient opportunity of being heard. 2. Even otherwise on the facts and in circumstances of the case as well as law on the subject, the learned CIT(E) has erred in rejecting the application of as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ently on 13/05/2024 for requiring certain explanation. In the show cause notice dated 13.05.2025, the ld CIT(E) referred clause H to O of objects of the assessee-trust and noted that the objects are charitable in nature and restricted to the members of the Trust and not for the benefit of public at large and as such does not fall under the category of charitable object as per the provision of section 2(15) of the Income-tax Act. The assessee was also require to submits audited accounts of FY-2022-23. The ld CIT(E) noted that no reply in response to show cause notice dated 13.05.2024 was filed by the assessee. The ld CIT(A) held that from of Memorandum of Article of assessee it is evident that the assessee-trust is formed for and by members ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hat where CIT(E) rejected assessee's trust application for registration under Section 12A on the ground that its objects were for benefit of a particular religious community or caste and accordingly assessee was not entitled for exemption in terms of Section 13(1)(b), since Section 13(1)(b) was not relevant at the stage of registration under Section 12A but rather comes into play at the time of assessment when determining exemption under Section 11, impugned rejection of application was unjustified. The ld. AR of the assessee submits that the objects of assessee are charitable and the assessee is undertaking its activities in accordance with its objects. The ld. CIT(E) while rejecting the application of assessee has referred Clause-H to O o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 612 (SC) * Bhamashah Sundarlal Daga Vs CIT(E) in ITA No. 278/Jodh/2023 dated 10/11/2023. 5. On the other hand, the ld. CIT-DR for the revenue supported the order of ld CIT(E). The ld CIT-DR for the revenue submits that the objects of the assessee are clearly for the benefits of particular community/Members of the trust as has been clearly identified by ld CIT(E). The assessee in its note of activities has admitted that they have no plan for religious activities in future. The object and activities of the assessee was not verified by the ld. CIT(E). On the contention of ld AR for the assessee that their activities are not doubted, the ld. CIT-DR submits that in case, if the Bench of view that the assessee deserve any relief, the matter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r Section 12A/12AB of the Act. We also find merit in the submission of ld. AR of the assessee that the ld. CIT(E) while rejecting the application of assessee has referred Clause- H to O only and has not considered the other clauses. Entire memorandum of association has to be considered and not by selecting a particular clause of the memorandum of association. Considering the fact that the ld. CIT(E) has not given his finding on the objects and activities of the assessee, therefore, in view of the above factual and legal position, we deem it appropriate to restore the issue back to the file of ld. CIT(E) reconsider the registration of assessee under Section 12AB of the Act afresh and pass order in accordance with law. The ld. CIT(E) shall co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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