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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
BHARGAV D. KARIA, PRANAV TRIVEDI
Commissioner Of Income Tax (Exemption) Ahmedabad – Appellant
Versus
Bhojaram Leuva Patel Seva Samaj Trust – Respondent
| Table of Content |
|---|
| 1. trust registration and its requirements. (Para 2 , 3) |
| 2. interpretation of section 13 and its applicability. (Para 5 , 6) |
| 3. conclusion on the merits of the appeal and trust registration. (Para 7) |
JUDGMENT :
BHARGAV D. KARIA, J.
1. Heard learned Senior Standing Counsel Ms. Maithili Mehta for the appellant.
2. This Appeal is filed under Section 260A of the Income Tax, 1961 (for short ‘the Act’)proposing the following substantial questions of law arising out of order dated 30.4.2024 passed by the Income Tax Appellate Tribunal, “C” Bench, Ahmedabad (For short ‘The Tribunal’) in ITA No.667/Ahd/2023:
“(i) Whether on the facts and in the circumstances of the case and law, Hon'ble Tribunal has erred while interpreting the decision of Hon'ble Supreme Court in the case of Dawoodi BoharaJamat 43 Taxmann.com 243 in holding that section 13(1)(b) could not be applied for denying the grant of registration under section 12AB of Income Tax Act, 1961 despite the fact that the assessee trust is not created for the benefit of general public and many of its object clauses are for the benefit of a particular religious community?
(ii)Whether on the fact and in the circumstances of the case an
Section 13's applicability is restricted to assessment stages, not registration, leading to the trust's re-evaluation.
Section 13(1)(b) of Income Tax Act inapplicable to trusts created before 1961, even for specific communities; registration under Section 12AB must be granted.
A trust with both charitable and religious purposes is eligible for registration under Section 12AA of the Income Tax Act, 1961, provided it serves the public at large.
Section 13 inapplicable at registration stage u/s 12AB; limited to exemption at assessment. Grant based on charitable objects and genuine activities.
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