No Denial of Trust Registration for Charity Without Prejudice to Caste and Creed: ITAT

Case Details: Amritsar Diocese of Believers Eastern Church v. Commissioner of Income-tax (Exemptions) - [2023] 149 taxmann.com 182 (Amritsar-Trib.)

Judiciary and Counsel Details

• • Dr M.l. Meena, Accountant Member & Anikesh Banerjee, Judicial Member
  • Iqbal Singh, CA. for the Appellant.
  • Hitendra Bhauraoji Ninawe, CIT DR for the Respondent.

Facts of the Case

The assessee was a charitable and religious trust created for the welfare of the general public regardless of caste, creed and religious status. It filed an application for registration under section 12A.

The Commissioner (Exemptions) denied registration to the assessee on the ground that it had violated the provisions of section 13(1)(b) as it operated only for the Christian community. Aggrieved-assessee filed the instant appeal before the Tribunal.

ITAT Held

The Tribunal held that the object clause of the assessee specifically mentioned that trust was charitable in nature and charity would be done without prejudice to any cast and creed. Primarily the object is never barred by section 13(1)(b). During registration of the trust the revenue authorities will verify the main object of the trust and the activities in relation to the main object of trust. Further, revenue had not made any adverse comment on the activity of the assessee-trust.

Further, it was specifically mentioned in the object of trust that there was there was no violation of section 13(1)(b). The department could not show any evidence against the assessee’s submission during the hearing. Accordingly, the order of the Commissioner (Exemption) was set aside, and the revenue is directed to issue the registration to the assessee-trust as the earliest.

List of Cases Referred to

• • Cognizance for Extension of Limitation, In re [2022] 134 taxmann.com 307/441 ITR 722 (SC) (para 2)
  • Sain Miran Baba Darvesh Ghulam Quadir Trust v. CIT (Exemptions) [IT Appeal No. 442 (Asr.) of 2018, dated 20-10-2022] (para 6.1)