9911796707
TMI Blog2025 (4) TMI 1043X X X X Extracts X X X X X X X X Extracts X X X X ..... e is that the assessee filed Form 10AB for registration of the Trust under section 12AB of the Act on 29-02- 2024. The Ld.CIT(E) observed that the objects of the Trust are for the benefit of the residents of the Dwarika Green Society and its member and are not for the benefit of the public at large. Hence a show cause notice dated 05-08-2024 was issued why not to deny registration u/s. 12AB of the Act. 2.1. In response, the assessee vide letter dated 10-08-2024 replied that the majority of the objects are for the benefit of the residents of the Dwarika Green Society, but Object nos. 5, 6 and 10 are for general public as well as to welfare of animals. However a resolution was passed by the Trust during the meeting held on 08- 08-2024 that t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ecting fees from its members (Club House Rent Income, Membership Fees Society and Maintenance Income). Moreover, the welfare activities adopted for its members are in nature of services being rendered to members as are common in other welfare organizations, which could not be termed for general public utility. Under similar circumstances, the Hon'ble Punjab & Haryana High Court in the case of CIT vs. Truck Operators Association reported in 9 taxmann.com 267 decided the matter in favour of revenue and held as under. "9. On examination of the objects and the purpose of the Association in the present case if emerges that the respondent- Association is union of Truck Operators constituted for facilitating its members to carry on the trade ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ggrieved against the rejection order, the assessee is in appeal before us raising the following Grounds of appeal: 1. The order u/s. 12AB(1)(b)(ii)(B) of the Act is bad in law. 2. The learned CIT(Exemption) has erred in law as well as on facts for rejecting the application for registration u/s. 12A(1)(ac) of the Act. 3. The learned CIT(Exemption) has erred in law as well as on facts in considering the objects of the trust for the benefits of the residents of the Dwarika Green Society and its members and are not for the benefit of the public at large. 5. We have heard the rival submissions and perused the materials available on record including the Paper Book filed by the Assessee. It is undisputed fact that the assessee Trust was reg ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntended to include only the trusts established for charitable purposes. That however does not mean that if a trust is a composite one, that is one for both religious and charitable purposes, then it would not be covered by clause (b). What is intended to be excluded from being eligible for exemption under Section 11 is a trust for charitable purpose which is established for the benefit of any particular religious community or caste." 5.2. Thus a conjoint reading of Sections 11, 12, 12A and 12AA of the Act 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 Sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n 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 as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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