Assessee-trust is in existence since 1946. It applied for registration under section 12AB. Commissioner (E) rejected application for registration on ground that objects of assessee-trust were restricted to benefit of a particular religious community or caste and, therefore, provisions of section 13(1)(b) would be applicable and it would not be eligible for exemption under section 11. Tribunal held that since assessee-trust is in existence prior to Income-tax Act came into force, provisions of section 13(1)(b) would not be applicable to it, even if it is created only for a particular community. CIT v. Palghat Shadi Mahal Trust (2020) 120 Taxman 889/ 254 ITR 212(SC), CIT v. Dawoodi Bohara Jamat (2014)222 Taxman 228 (Mag) / 364 ITR 31 (SC), distinguished. (AY. 2022-23)
Levva Patel Gnati v. CIT (2024) 208 ITD 490 (Rajkot) (Trib.)
S. 12AB: Procedure for fresh registration-Particular religious community or caste-Trust is in existence since 1946 i.e., prior to Income-tax Act came into force-Provisions of section 13(1)(b) is not be applicable.[S.11, 13(1)(b) Rule,17A]