Assessee-trust applied for registration under section 12A(1)(ac)(iii) CIT(E) rejected the application on the ground that trust’s objects catered to the benefit of a particular religious community or caste and thus amounted to a “specified violation” under the Explanation to section 12AB(4). On appeal, the Tribunal held that, as per the Explanation to section 12AB(4), the specified violation occurs only when the income of the trust is actually ‘applied’ for the benefit of a particular religious caste or community. On facts, CIT(E)  had not found any application of income of trust for the benefit of any particular religious caste or community and had not conducted any inquiry regarding the occurrence of specified violation but merely relied on trust’s objects; his finding of specified violation under section 12AB(4) was incorrect, and denial of registration was not in accordance with law. Accordingly, the CIT(E)   was directed to grant registration to the assessee trust.