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TMI Blog2025 (1) TMI 383X X X X Extracts X X X X X X X X Extracts X X X X ..... d it will act accordingly keeping the seven spheres before the Centre. 1.- Jain mandir: This organization will construct, assist in constructing Jin temples conforming to the tenets of Jainism as required and property administer and maintain existing-ancient Jin temples 2. Jain Pratima: Keeping Jain Muni's advice in center, the Jain idol will be created. 3. Shrut Gyan: Trust involved in activity of development and shrut gran for the purpose of awareness and spreading of Jain shrut gnan. Recreation of ancient new jain scriptures with ancient method. 4. Sadhu Sadhvi Valyavacha: Creation of Vaiyavacha Khatu for regular and special study of dixarthi, sadhu, sadhviji, Acharya Bhagwant, etc, of Jainism and collection of donations keeping in corpus for fulfillment of religious requirement for sadhu and sadhvis. 5. Sadharmik Bhakti: Program and planning for all Jain followers-Shravak and shravika for the purpose of creating internal sense of devotions of Jainism. Moreover, supporting in life living requirements and promoting them in society whose income follows under less income category-Poor families. Support and service to future dixarthis and Mumukshs. 6. Jivda ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rust will request for the chaturmas of Acharya Bhagwant and will make the do chaturmas according to the conveniency and will take benefit to gain knowledge from Acharya Bhagwant, Sadhus and sadhviji in paryushan and will endeavor to disseminate it. (10) To inculcate the religious spirit in the children, services of religious experts will be taken and the children studying in the school will be encouraged. Create and promote a library of religious books. The Trust shall act in accordance with the principles of Jainism and existing laws and shall raise necessary funds (donations) for the same and plan expenditure as per the provision in the Constitution as necessary and allocate the amount as per the provisions of the Constitution and principles of Jainism as necessary to the organization with the same purpose. (11) Notwithstanding anything not stated in this trust deed, the Acharya may take discretionary decisions and act according to the advice of the Lords in accordance with the principles of Jainism. All the activities of this organization like Derasaro-Upashrayo-Paushadshalas- Prachan Hall Murtipratistha, Anjan Shalaka etc. will be done according to the prevailing principl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 13 has to be read in conjunction with the provisions of Sections 11 and 12 for determining the eligibility of a trust to claim exemption under the aforesaid provisions: "16. Therefore, under the scheme of the Act. Sections 11 and 12 are substantive provisions which provide for exemptions available to a religious or charitable trust. Income derived from property held by such public trust as well as voluntary contributions received by the said trust are the subject-matter of exemptions from the taxation under the Act. Sections 12A and 12AA detail the procedural requirements for making an application to claim exemption under Sections 11 or 12 by the assessee and the grant or rejection of such application by the Commissioner. A conjoint reading of Sections 11, 12, 12A and 12AA makes it clear that registration under Sections 12A and 12AA is a condition precedent for availing benefit under Sections 11 and 12. Unless an institution is registered under the aforesaid provisions, it cannot claim the benefit of Sections 11 and 12. Section 13 enlists the circumstances wherein the exemption would not be available to a religious or charitable trust otherwise falling under Section 11 or 12 and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntitled to the exemption if other conditions were satisfied even though it was created for the benefit of the Rana caste of Ahmedabad," 12. In the circumstances, on the basis of the material which was produced by the assessee on the record of the Commissioner and before the Tribunal, we are of the view that no substantial question of law would arise in this appeal so as to warrant the Interference of this Court. However, while dismissing the appeal, we clarify that this would not affect the liberty which has been granted to the society to file a fresh application for registration." 9.2 It is also important to go through the provisions of sec 13(1)(b) of the Act is applicable in the present case which are reproduced as under: "13. (1) Nothing contained in section 11 or section 12 shall operate so as to exclude from the total income of the previous year of the person in receipt thereof- (a) 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; (b) in the case of a trust for charitable purposes or a charitable institution created or established after the commencement of this Act, any in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is rejected and provisional registration stands cancelled. 4. Aggrieved against the rejection order, assessee is in appeal before us raising the following Grounds of Appeal: "1. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has erred in rejecting application for registration u/s 12AB of the Act. 2. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has erred in cancelling the provisional registration of the assessee-trust. 3. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has erred in invoking the provisions of Section 13(1)(b) of the Act without considering that assessee-trust is religious-cum-charitable trust and section 13(1)(b) of the Act is applicable only to the charitable trust. 4. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax (Exemption) has erred in holding that assessee-trust has conducted 'specified violations' as per the explanation to section 12AB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eady reference the same is reproduced as under: "(4) Where registration or provisional registration of a trust or an institution has been granted under clause (a) or clause (b) or clause (c) of sub-section (1) or clause (b) of sub-section (1) of section 124A, as the case may be, and subsequently- (a) the Principal Commissioner of Commissioner has noticed occurrence of one or more specified violations during any previous year, or (b) the Principal Commissioner of Commissioner has received a reference from the Assessing Officer under the second proviso to sub-section (3) of section 143 for any previous year; or (c) such case has been selected in accordance with the risk management strategy, formulated by the Board from time to time, for any previous year, The Principal Commissioner of Commissioner shall- (i) call for such documents or information from the trust or institution, or make such inquiry as he thinks necessary in order to satisfy himself about the occurrence or otherwise of any specified violation, (ii) pass an order in writing, cancelling the registration of such trust or institution, after affording a reasonable opportunity of being heard, for such previous ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 12AB(4) of the Act clearly laid down that registration of the Trust or Institution established for charitable purpose created or established after the commencement of this Act, wherein the trust has applied any part of its income for the benefit of any particular religious community or caste can be cancelled. In this context perusal of the main objects of the Trust, which are reproduced in paragraph 2 of this order, makes it abundantly clear that all the objects enumerated therein are related to religious activities more particularly relating to "Jain Community" and to propagate "Jainism" i.e. charitable cum religious in nature is for the benefit of "Jain" caste which is a specific violation under clauses [c] and (d) to Explanation to Section 12AB(4) of the Act. 7.2. Further section 13[1][b] of the Act exclude the benefit of section 11 and 12 to a charitable institution created or established after commencement of the Act, income thereof the trust for the benefit of any particular religious community or caste. The Hon'ble Supreme Court in the case of CIT vs Dawoodi Bohara Jamat reported in 43 taxmann.com 243, held that the provision of section 13(1)(b) of the Act is appl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 of the objects of the trust to come to the conclusion that the same were for the benefit of a certain religious communities only, in the process ignoring various other objects, for e.g. as per clause 4.1, the trust would engage itself in activities relating to education by maintaining and running education centers, infant schools, primary secondary and high schools, colleges etc., to run hostels, training centers for creating awareness in the common people and to make the education available for the public. It would also engage in imparting training in computers. As per clause 4.3, the trust would engage in doing all activities for medical help and to establish and administer dispensaries, hospitals and laboratories etc. It would also help the patients by supplying medicines and financial assistance. Likewise in clause 4.4 the trust could engage in rural development schemes. As per clause 4.5, the trust would engage in literary and cultural activities by making efforts for the development and protection of Indian culture. Clause 4.6 which pertains to other included activities such as running cow shelters, to provide food, cloth and financial help for economically weaker persons, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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