By TIOL News Service

JAIPUR, JUNE 26, 2017: THE ISSUE BEFORE THE TRIBUNAL IS - Whether Registration u/s 12AA r/w/s 13 of I-T Act can be denied, if the objective of charitable trust is only for a particular religious community. YES is the answer.

Facts of the case:

The assessee trust had made an application in Form No. 10A seeking registration u/s 12AA of the Income Tax Act, 1961 (the Act). The CIT(E) however rejected the application on the ground that object and activities of the application trust/ society were for the benefit of particular religious community.

On appeal, the ITAT held that,

++ after going through the objects of the trust, a bare reading of the objectives made it clear that objectives of the trust were essentially for the purpose of benefit of a particular religious community as per Clause 5 of the objects states oppose the laws which effect the Jain Community and Religion. CIT rightly rejected the application. We also find that the dominant objectives of the assessee in the form of the other clauses of the objectives is for the purpose of safeguarding and benefiting the interest of the Jain Community. Therefore, we do not see, any reason to interfere into the decision of the CIT(E) same is hereby affirmed, this application is dismissed.

(See 2017-TIOL-937-ITAT-JAIPUR)