M/s. Sree Vijayawada Gujarati Samaj, Vijayawada V. The CIT, Hyderabad

ITA 512/VIZ/2016

• Counselvise Citation: [2017] 126 COUNSELVISE.COM (IT) 6451 (ITAT-VISAKHAPATNAM)
• Duration Of Justice: 11 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-12-2017
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 29-12-2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: V MADHUVANI
• Keywords: Charitable institution
• Section: 80G; 12A; 12AA

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, VISAKHAPATNAM BENCH, VISAKHAPATNAM . , . . , BEFORE SHRI V. DURGA RAO, JUDICIAL MEMBER & SHRI D.S. SUNDER SINGH , ACCOUNTANT MEMBER . / I . T .A.NO. 512 /VIZ/ 201 6 ( / ASSESSMENT YEAR: N.A. ) M/S SREE VIJAYAWADA GUJARATI SAMAJ D.NO.12 - 11 - 21, R.R.APPARAO STREET VIJAYAWADA - 520 001 [ PAN : A AAJS2463D ] VS. THE CIT (EXEMPTIONS) HYDERABAD ( / APPELLANT) ( / RESPONDENT) / APPELLANT BY : SHRI G.V.N.HARI , A R / RESPONDENT BY : S MT V.MADHU VANI, DR / DATE OF HEARING : 2 1 . 1 1 .2017 / DATE OF PRONOUNCEMENT : 20 . 1 2 .2017 / O R D E R PER D.S. SUNDER SINGH , ACCOUNTANT MEMBER : THIS APPEAL IS FILED BY THE ASSESSEE AGAINST THE AGAINST THE ORDER OF COMMISSIONER OF INCOME - TAX (EXEMPTIONS) [CIT] U/S 12AA(1)(B) OF INCOME TAX FOR REJECTION OF APPLICATION IN FORM NO.10A DT . 18.03.2016 2 ITA NO .512/VIZ/2016 M/S SREE VIJAYAWADA GUJARATI SAMAJ, VIJAYAWADA SEEKING REGISTRATION U/S 12AA OF I.T.ACT. VIDE ORDER IN F. NO. CIT(E)/83(3)/12A/2015 - 16 DATED 30 .0 9 .201 6. 2. THE ASSESS E E FILED APPLICATION IN FORM NO.10A SEEKING REGISTRATION U/S 12AA OF I T A CT AND THE LD.CIT CALLED FOR INFORMATION BY ISSUING NOTICE AND FROM THE INFORMATION FURNISHED BY THE ASSESS E E, T HE LD. CIT OBSERVED THAT THE OBJECTIVE CLAUSE (A) OF AMENDED MOA READS AS UNDER : (A) TO BRING TOGETHER ALL THE MEMBERS OF THE GUJARATI COMMUNITY FROM GUJARAT CUTCH, SAURASTRA AND OTHER PLACES, LIVING IN VIJAYAWADA INTO AN ASSOCIATION FOR THEIR ADVANTAGE AND BEN EFIT IN ALL POSSIBLE DIRECTIONS TO DEVELOP AND FOSTER AMONGST ITS MEMBERS A SENSE OF LOVE AND BROTHERHOOD AND COLLECTIVITY. SINCE THE OBJECTIVE CLAUSE INDICATES THAT THE SOCIET Y EXISTS ONLY FOR GUJARATI COMMUNITY SETTLED AT VIJAYAWADA , IS AGAINST THE PRO VISIONS OF SECTION 2(15) OF THE ACT , AND THE OBJECT S A PPEAR TO BE NOT CHARITABLE IN NATURE, THE L D.CIT REFUSED TO GRANT THE REGISTRATION U/S 12AA OF THE ACT. HENCE, THE APPL ICATION FILED BY THE ASSESSEE WAS REJECTED. 3. AGGRIEVED BY THE ORDER OF THE CIT, THE A SSESSEE FILED THE APPEAL BEFORE THIS TRIBUNAL. DURING THE APPEAL HEARING, THE LD.AR ARGUED THAT THE OBJECTIVE S OF THE SOCIETY IS NOT ONLY FOR PARTICULAR GUJARATI COMMUNITY, BUT 3 ITA NO .512/VIZ/2016 M/S SREE VIJAYAWADA GUJARATI SAMAJ, VIJAYAWADA ALSO FOR OTHER GENERAL OBJECTS. THE LD.AR SUBMITTED THAT AS PER MOA, THE OBJE CTS OF THE SOCIETY ARE AS UNDER : (A) TO BRING TOGETH E R ALL THE MEMBERS OF THE GUJARATI COMMUNITY FROM GUJARAT DOMICILE IN VIJAYAWADA INTO AN ASSOCIATION FOR THEIR ADVANTAGE AND BENEFIT IN ALL POSSIBLE DIRECTIONS AND TO DEVELOP AND FOSTER AMONGST THEMSELVES THE SENSE OF LOVE AND BROTHERHOOD AND COLLECTIVITY AND TO RETAIN & DEVELOP THEIR CULTURE, TRADITION AND CUSTOMS. (B) TO RENDER ALL POSSIBLE ASSISTANCE TO TH E GENERAL PUBLIC OF VIJAYAWADA IN TIMES OF DISTRESS AND TO ASSIST THE LOCAL ADMINISTRATION IN MAINTAINING UNITY & PEACE BETWEEN DIFFERENT COMMUNITIES IN OF NEED AND TO RENDER ALL POSSIBLE HELP IN TIMES OF FAMINE, CYCLONE, FLOOD, HURRICANE, TYPHOON, NATURAL CALAMITIES AND IN ANY OTHER DISASTER OR MISHAP & AID IN TIMES OF NATIONAL CALAMITY (C) TO MAKE ARRAN GEM ENTS FOR IMPARTING ELEMENTARY AND SECOND AR Y EDUCATION IN GUJARATI AND OTHER LANGUAGES TO THE CHILDREN RESIDING IN VIJAYAWADA, IRRESPECTIVE OF REL I GION, CASTE, CREED, SEX ETC., (D) TO ACQUIRE, LEASE, SELL, DISPOSE BOTH IMMOVABLE AND MOVABLE PROPERTIES I N THE NAME OF SAMAJ IN ORDER TO RENDER ITS ACTIV I TIES MORE EFFECTIV E LY AND TO TAKE APPROPRIATE MEASURES TO UPKEEP, PRESERVE, MAINTAIN AND SAFEGUARD THE PROPERTIES (E) TO SUBSC RI B E TO OR ENLIST AS MEMBER AND TO COOPERATE WITH ANY OTHER ASSOCIATION WHETHER INCORPORATED OR NOT WHOSE OBJECTS ARE ALTOGETHER OR IN PART SIMILAR TO THAT OF THE SAMAJ AND TO PROCURE FROM AND TO COMMUNICATE TO ANY SUCH ASSOCIATION SUCH INFORMATION AS MAY BE LIKELY TO FORWARD THE OBJECTS OF THIS SAMAJ AND BENEFIT THE MEMBERS OF THIS SAMAJ. (F) TO COLL E CT SUBSCRI P TIONS OR DONATIONS AND TO ACCEPT CONTRIBUTIONS AND ALSO TO SUBSCRIBE OR MAKE DO NATIONS FOR AND TO DO CHARITAB L E DEEDS AND TO ASSIST AND FINANCE DESERVING POOR STUDENTS AND OTHER NEEDY . 4 ITA NO .512/VIZ/2016 M/S SREE VIJAYAWADA GUJARATI SAMAJ, VIJAYAWADA (G) TO RUN, MANAGE MAINTAIN INSTITUTIONS V IZ CRECHE, NURSERY, SCHOOL, COLLEGE, HOSPITAL, HOSTEL & GUEST HOUSE, HOUSING SOCIETY , MUSICAL SCHOOL & AUDITORIUM, EMBROIDERY , STITCHING &SEWING CLASS, COTTAGE INDUSTRI E S . TOURISM PROMOTI O N CENTRE, CREDIT SOCIETY AND ANY OTHER SOCIAL WELFARE ACTIVITY IN ACCORDANCE W I TH THE OBJECTS OF THE SAMAJ. (H) TO ACCEPT DONATIONS FOR SPECIFIC OR GENERAL PURPOSE AND EITHER IN CASH OR IN KIND. (I) TO ADMINISTER WELFARE SCHEMES VIZ PROVIDENT FUND, GRATUITY, GROUP I NSURANCE AND OTHER SCHEMES AND TO OFFER APPROPRIATE ASSISTANCE TO THE EMPLOYEES AND MEMBERS OF THE SAMAJ. (J) TO MAKE PROPER ARRANGEMENTS F O R THE ATTAINMENT OF THE OBJECTS OF TH E SAMAJ AND TO BORROW FUNDS IN TUNE WITH THE NEED OF THE CIRCUMSTANCES . (K) TO DO SUCH ACTS AS MAY BE FOUND NECESSARY IN THE INTERESTS AND FOR THE PURPOSE OF SAMAJ AND ITS MEMBERS. 3.1. LD.AR ARGUED THAT THE LD. CIT CONSIDERED ONE OF THE OBJECTIVES AND IGNORED THE REMAINING OBJECTS WHICH ARE MEANT FOR CHARITABLE AND FOR THE BENEFIT OF GENERAL PUBLIC . AT THE TIME GRANTING REGISTRATION TO THE SOCIETY, IF THE OBJECTS ARE CHARITABLE IN NATURE THE REGISTRATION SHOULD BE G RANTED AND THE SAME SHOULD NOT BE REJECTED A S PER THE DECIDED CASE LAWS . THE AR FURTHER ARGUED THAT WHILE GRANTING REGISTRATION, THE OBJECTS BENEFICIAL TO THE GENERAL PUBLIC SHOULD NOT BE IGNORED. HE HAS INVITED OUR ATTENTION TO THE DECISION OF CIT(EXEMP TION) VS. BAYATH KUTCHHI DASHA OSWAL JAIN MAHAJAN 5 ITA NO .512/VIZ/2016 M/S SREE VIJAYAWADA GUJARATI SAMAJ, VIJAYAWADA TRUST (243 TAXMAN 0060), THE HONBLE GUJARAT HIGH COURT H A D ANSWERED THE FOLLOWING QUESTION RAISED BY THE REVENUE AS UNDER : (A) WHETHER THE APPELLATE TRIBUNAL IS CORRECT IN ALLOWING REGISTRATION TO THE ASSESSEE, DISREGARDING THE FACT THAT THE ASSESS EE TRUST IS HIT BY SECTION 13(1) (B) OF THE ACT, AS THE TRUST IS NOT CREATED FOR THE BENEFIT OF GENERAL PUBLIC BUT IS CREATED FOR THE BENEFIT OF A PARTICULAR RELIGIOUS COMMUNITY I.E. JAIN COMMUNITY? THE HO NBLE HIGH COURT HELD THAT 7. IT CAN THUS BE SEEN THAT THE COMMISSIONER FOCUSED HIS ATTENTION TO CLAUSE 4.2 OF THE OBJECTS OF THE TRUST TO COME TO THE CONCLUSION THAT THE SAME WERE FOR THE BENEFIT OF A CERTAIN RELIGIOUS COMMUNITIES ONLY, IN THE PROCESS IGNORING VARIOUS OTHER OBJECTS, FOR E.G. AS PER CLAUSE 4.1, THE TRUST WOULD ENGAGE ITSELF IN ACTIVITIES RELATING TO EDUCATION BY MAINTAINING AND RUNNING EDUCATION CENTERS, INFANT SCHOOLS, PRIMARY SECONDARY AND HIGH SCHOOLS, COLLEGES ETC., TO RUN HOSTELS, T RAINING CENTERS FOR CREATING AWARENESS IN THE COMMON PEOPLE AND TO MAKE THE EDUCATION AVAILABLE FOR THE PUBLIC. IT WOULD ALSO ENGAGE IN IMPARTING TRAINING IN COMPUTERS. AS PER CLAUSE 4.3, THE TRUST WOULD ENGAGE IN DOING ALL ACTIVITIES FOR MEDICAL HELP AND TO ESTABLISH AND ADMINISTER DISPENSARIES, HOSPITALS AND LABORATORIES ETC. IT WOULD ALSO HELP THE PATIENTS BY SUPPLYING MEDICINES AND FINANCIAL ASSISTANCE. LIKEWISE IN CLAUSE 4.4 THE TRUST COULD ENGAGE IN RURAL DEVELOPMENT SCHEMES. AS PER CLAUSE 4.5, THE TR UST WOULD ENGAGE IN LITERARY AND CULTURAL ACTIVITIES BY MAKING EFFORTS FOR THE DEVELOPMENT AND PROTECTION OF INDIAN CULTURE. CLAUSE 4.6 WHICH PERTAINS TO OTHER INCLUDED ACTIVITIES SUCH AS RUNNING COW SHELTERS, TO PROVIDE FOOD, CLOTH AND FINANCIAL HELP FOR ECONOMICALLY WEAKER PERSONS, TO HELP DURING NATURAL OR OTHER CALAMITIES, TO SERVE HUMANS AND ANIMALS ETC. 8. THUS, VERY PREMISE FOR THE COMMISSIONER TO COME TO THE CONCLUSION THAT THE OBJECTS OF THE TRUST WERE CONFINED FOR THE BENEFIT OF A RELIGIOUS COMMUN ITY, IS INCORRECT. THEREAFTER TO SUGGEST THAT THE ACTIVITIES WERE CARRIED OUT ONLY FOR SUCH PURPOSES WOULD BE ENTERING IN THE REALM OF GRANTING EXEMPTIONS IN TERMS OF SECTION 13 OF THE ACT, WHICH WOULD BE THE TASK OF THE ASSESSING OFFICER TO BE UNDERTAKEN AT THE TIME OF ASSESSMENT ON THE BASIS OF MATERIAL THAT MAY BE BROUGHT ON RECORD. 3.2. THE LD.AR FURTHER ARGUED THAT AT THE STAGE OF GRANTING REGISTRATION , THERE IS NO APPLICATION OF SECTION 13(1)(B) AND SECTION 13(1)(B) APPLIES AT THE STAGE ASSESSMENT , ONLY WHEN THERE IS CLAIM U/S 11 AND 12. THE 6 ITA NO .512/VIZ/2016 M/S SREE VIJAYAWADA GUJARATI SAMAJ, VIJAYAWADA LD.AR FURTHER SUBMITTED THAT THE LD.CIT HAS TO CONSIDER THE ENTIRE OBJECTS WHILE GRANTING REGISTRATION. 4. THE SECOND PROPOSITION SUBMITTED BY THE LD.AR THAT THE SOCIETY IN THIS CASE IS REGISTERED UNDER SOCIET IES ACT ON 21.02.1957 AND GRANTED EXEMPTION U/S 15B AKIN TO SECTION 80G OF I.T.ACT, 1961 ON 06.04.1962 AND THE AMENDMENT TO PROVISO OF SECTION 13(1)(B) HAS NO APPLICATION TO THE SOCIETIES REGISTERED PRIOR TO THE COMMEN CEMENT OF I.T.ACT 1961. THE LD.AR RE LIED ON THE DECISION OF JURISDICTIONAL HIGH COURT IN THE CASE OF CIT VS. ARYA VYSYA KALYANA NILAYA SANGAM [159 ITR 0324] AND ARGUED THAT THE ORDER OF THE CIT(EXEMPTIONS) TO BE SET ASIDE AND REQUESTED TO GRANT THE REGISTRATION. 5 . ON THE OTHER HAND, LD.D R VEHEMENTLY OPPOSED THE ARGUMENTS OF THE LD.A.R AND ARGUED THAT THE SOCIETY IS IN EXISTENCE ON L Y FOR A PARTICULAR COMMUNITY, HENCE, THE CIT HAS RIGHTLY REJECTED THE APPLICATION OF THE ASSESSEE FOR GRANTING REGISTRATION U/S 12A A AND REQUEST ED TO UPHOLD THE ORDER OF THE LD .CIT. 7 ITA NO .512/VIZ/2016 M/S SREE VIJAYAWADA GUJARATI SAMAJ, VIJAYAWADA 6 . WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE MATERIAL PLACED ON RECORD. WE HAVE GONE THROUGH THE OBJECTS OF THE SOCIETY WHICH READS AS UNDER : (A) TO BRING TOGETH E R ALL THE MEMBERS OF THE GUJARATI COMMUNITY FROM GUJARAT DOMICILE IN VIJAYAWADA INTO AN ASSOCIATION FOR THEIR ADVANTAGE AND BENEFIT IN ALL POSSIBLE DIRECTIONS AND TO DEVELOP AND FOSTER AMONGST THEMSELVES THE SENSE OF LOVE AND BROTHERHOOD AND COLLECTIVITY AND TO RETAIN & DEVELOP THEIR CULTURE, TRADITION AND CUSTOMS. (B) TO RENDER ALL POSSIBLE ASSISTANCE TO TH E GENERAL PUBLIC OF VIJAYAWADA IN TIMES OF DISTRESS AND TO ASSIST THE LOCAL ADMINISTRATION IN MAINTAINING UNITY & PEACE BETWEEN DIFFERENT COMMUNITIES IN OF NEED AND TO RENDER ALL POSSIBLE HELP IN TIMES OF FAMINE, CYCLONE, FLOOD, HURRICANE, TYPHOON, NATURAL CALAMITIES AND IN ANY OTHER DISASTER OR MISHAP & AID IN TIMES OF NATIONAL CALAMITY (C) TO MAKE ARRAN GEM ENTS FOR IMPARTING ELEMENTARY AND SECOND AR Y EDUCATION IN GUJARATI AND OTHER LANGUAGES TO THE CHILDREN RESIDING IN VIJAYAWADA, IRRESPECTIVE OF REL I GION, CASTE, CREED, SEX ETC., (D) TO ACQUIRE, LEASE, SELL, DISPOSE BOTH IMMOVABLE AND MOVABLE PROPERTIES I N THE NAME OF SAMAJ IN ORDER TO RENDER ITS ACTIV I TIES MORE EFFECTIV E LY AND TO TAKE APPROPRIATE MEASURES TO UPKEEP, PRESERVE, MAINTAIN AND SAFEGUARD THE PROPERTIES (E) TO SUBSC RI B E TO OR ENLIST AS MEMBER AND TO COOPERATE WITH ANY OTHER ASSOCIATION WHETHER INCORPORATED OR NOT WHOSE OBJECTS ARE ALTOGETHER OR IN PAR T SIMILAR TO THAT OF THE SAMAJ AND TO PROCURE FROM AND TO COMMUNICATE TO ANY SUCH ASSOCIATION SUCH INFORMATION AS MAY BE LIKELY TO FORWARD THE OBJECTS OF THIS SAMAJ AND BENEFIT THE MEMBERS OF THIS SAMAJ. (F) TO COLL E CT SUBSCRI P TIONS OR DONATIONS AND TO ACCEPT CONTRIBUTIONS AND ALSO TO SUBSCRIBE OR MAKE DONATIONS FOR AND TO DO CHARITAB L E DEEDS AND TO ASSIST AND FINANCE DESERVING POOR STUDENTS AND OTHER NEEDY . (G) TO RUN, MANAGE MAINTAIN INSTITUTIONS VIZ CRECHE, NURSERY, SCHOOL, COLLEGE, HOSPITAL, HOSTEL & GUEST HOUSE, HOUSING SOCIETY , MUSICAL SCHOOL & AUDITORIUM, EMBROIDERY , STITCHING & SEWING CLASS, COTTAGE INDUSTRI E S . TOURISM PROMOTI O N CENTRE, CREDIT SOCIETY AND ANY OTHER SOCIAL WELFARE ACTIVITY IN ACCORDANCE W I TH THE OBJECTS OF THE SAMAJ. (H) TO ACCEPT DONATIONS FOR SPECIFIC OR GENERAL PURPOSE AND EITHER IN CASH OR IN KIND. 8 ITA NO .512/VIZ/2016 M/S SREE VIJAYAWADA GUJARATI SAMAJ, VIJAYAWADA (I) TO ADMINISTER WELFARE SCHEMES VIZ PROVIDENT FUND, GRATUITY, GROUP I NSURANCE AND OTHER SCHEMES AND TO OFFER APPROPRIATE ASSISTANCE TO THE EMPLOYEES AND MEMBERS OF THE SAMAJ. (J) TO MAKE PROPER ARRANGEMENTS F O R THE ATTAINMENT OF THE OBJECTS OF TH E SAMAJ AND TO BORROW FUNDS IN TUNE WITH THE NEED OF THE CIRCUMSTANCES . (K) TO DO SUCH ACTS AS MAY BE FOUND NECESSARY IN THE INTERESTS AND FOR THE PURPOSE OF SAMAJ AND ITS MEMBERS. 6 .1. THE SOCIETY IS INCORPORATED NOT ONLY FOR THE PURPOSE OF GUJARATI COMMUNITY, BUT ALSO FOR OTHER PUBLIC CHARITABLE PURPOSE S WHICH INCLUDES GENERAL PUBLIC OF VIJAYAWADA AND THE SOCIETY IS ALSO RUNNING SCHOOL WHICH IS FOR PUBLIC CHAR ITABLE PURPOSE. THE CIT REJECTED THE REGISTRATION CONSIDERING ONLY ONE OF THE OBJECTIVES I.E. FOR WELL BEING OF THE GUJARATI COMMUNITY. GUJARATI COMMUNITY DOES NOT SPECIFY ANY SPECIFIC CASTE OR RELIGION OR SECT I.E. ALL THE COMMUNITIES , CASTES OF THE PEO PLE SPEAKING GUJARATI RESIDING IN VIJAYAWADA. SINCE THE OTHER OBJECTS INCLUDE PUBLIC CHARITABLE PURPOSE S AND THE GENERAL PUBLIC AS HELD BY HONBLE HIGH COURT OF GUJARAT IN THE DECISION OF CIT(EXEMPTION) VS. BAYATH KUTCHHI DASHA OSWAL JAIN MAHAJAN TRUST (SUPRA), THE REGISTRATION CANNOT BE REFUSED MERELY RELYING ON ONE OF THE OBJECT IGNORING OTHER OBJECTS . SIMILARLY AT THE TIME OF GRANTING REGISTRATION AS HELD BY HONBLE HIGH COURT OF ALLAHABAD IN THE CASE OF CIT VS. SRI SAI DARBAR TRUST, THERE IS NO APPL ICATION OF SECTION 13(1)(B). FOR READY 9 ITA NO .512/VIZ/2016 M/S SREE VIJAYAWADA GUJARATI SAMAJ, VIJAYAWADA REFERENCE, WE EXTRACT RELEVANT PARAGRAPH OF THE DECISION OF HONBLE HIGH COURT OF ALLAHABAD REPORTED IN 98 CCH 0016 AS UNDER: WE HAVE HEARD LEARNED COUNSEL FOR BOTH THE SIDES AT LENGTH AND HAVE NO DIFFICULTY IN ANSWE RING THE QUESTIONS IN FAVOUR OF THE ASSESSEE. THE ASSESSEE HAD FILED AN APPLICATION FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. THE QUESTION OF GRANTING OF EXEMPTION UNDER SECTIONS 11 AND 12 TO A TRUST WOULD ONLY ARISE WHEN A CLAIM WAS MADE BY THE ASSE SSEE FOR THE SAME . THE STAGE IN THE PRESENT CASE HAD NOT YET ARRIVED . NO FINDING HAS BEEN RECORDED AT ANY STAGE OF THE PROCEEDING THAT THE ASSESSEE HAD MADE ANY CLAIM FOR EXEMPTIONS. IT HAD SIMPLY APPLIED FOR REGISTRATION UNDER THE PROVISIONS OF SECTION 12 AA OF THE ACT. THE HON'BLE APEX COURT WHILE EXAMINING A SIMILAR QUESTION WITH REGARD TO THE APPLICABILITY OF SECTIONS 215, 11, 12, 12A, 12AA AND 13, CLEARLY NOTED IN ITS JUDGEMENT, HAD OBSERVED WHILE EXAMINING THE PROVISIONS OF SECTION 13(1)(B) SPECIFICALLY: - ' WE WOULD NOW PROCEED TO EXAMINE THE OBJECTS UNDER THE PROVISIONS OF SECTION 13(1)(B) OF THE ACT. IT BECOMES AMPLY CLEAR FROM THE LANGUAGE EMPLOYED IN THE PROVISIONS THAT SECTION 13 IS IN THE NATURE OF AN EXEMPTION FROM APPLICABILITY OF SEC TION 11 OR SECTION 12 AND THE EXAMINATION OF ITS APPLICABILITY WOULD ONLY ARISE AT THE STAGE OF CLAIM UNDER SECTIONS 11 OR 12. THUS, WHERE THE INCOME OF A TRUST IS ELIGIBLE FOR EXEMPTION UNDER SECTION 11, THE ELIGIBILITY FOR CLAIMING EXEMPTION OUGHT TO BE TESTED ON THE TOUCH STONE OF THE PROVISIONS OF SECTION 13. IN THE INSTANT CASE, IT BEING ESTABLISHED THAT THE RESPONDENT - TRUST IS A PUBLIC CHARITABLE AND RELIGIOUS TRUST ELIGIBLE FOR CLAIMING EXEMPTION UNDER SECTION 11, IT BECOMES RELEVANT TO TEST IT ON TH E ANVIL OF SECTION 13.' FROM A READING OF THE ABOVE, IT BECOMES CLEAR THAT THE APPLICATION OF SECTION 13(1)(B) WOULD ONLY ARRIVE AT A STAGE WHEN AN APPLICATION FOR EXEMPTION IS MADE. AT THE TIME OF REGISTRATION OF THE TRUST ALL THAT IS REQUIRED TO BE SEEN IS WHETHER THE OBJECT AND PURPOSE OF THE FORMATION OF THE TRUST, IS FOR A CHARITABLE PURPOSE. IN VIEW OF THE ABOVE, WE ARE OF THE OPINION THAT THE TRIBUNAL RIGHTLY CAME TO THE CONCLUSION THAT AT THE STAGE OF GRANT OF THE REGISTRATION UNDER SECTIONS 12A AND 12AA, THE PROVISIONS OF SECTION 13(1)(B) WOULD NOT APPLY. THE QUESTIONS ARE, THEREFORE, ANSWERED IN FAVOUR OF THE ASSESSEE AND AGAINST THE DEPARTMENT. 10 ITA NO .512/VIZ/2016 M/S SREE VIJAYAWADA GUJARATI SAMAJ, VIJAYAWADA 6 .2. IN THE INSTANT CASE THE TRUST HAD LARGE NUMBER OF OTHER OBJECTS FOR THE BENEFIT OF GENERAL PUBLIC APART FROM OBJECTS FOR BENEFIT OF A GUAJARATI COMMUNITY. TAKING INTO CONSIDERATION OF OTHER OBJECTS WE HOLD THAT THIS IS FIT CASE FOR GRATING REGISTRAT I ON 12AA AND THE CASE IS SQUARELY COVERED BY THE CASE LAWS CITED SUPRA. ACCORDINGLY, WE GRANT THE REGISTRATION U/S 12A A OF I.T.ACT TO THE SOCIETY AND ALLOW THE APPEAL OF THE ASSESSE E . SINCE WE HAVE ALLOWED THE APPEAL OF THE ASSESSE E AND GRANTED THE REGISTRAT ION U/S12AA WE CONSIDER IT IS NOT NECESSARY TO ADJUDICATE ALTERNATE CLAIM OF THE ASSESSE E . ACCORDINGLY WE SET ASIDE THE ORDER OF THE LD. CIT AND GRANT REGISTRATION TO THE SOCIETY U/S 12A A OF I.T.ACT. 7 . IN THE RESULT, APPEAL OF THE ASSESSEE IS ALLOWED. THE ABOVE ORDER WAS PRONOUNCED IN THE OPEN COURT ON 20 TH DEC 20 17 . SD/ - SD/ - ( . ) ( . . ) (V. DURGA RAO) ( D.S. SUNDER SINGH ) /JUDICIAL MEMBER /ACCOUNTANT MEMBER /VISAKHAPATNAM /DATED : 20 . 1 2 .2017 L. RAMA, SPS 11 ITA NO .512/VIZ/2016 M/S SREE VIJAYAWADA GUJARATI SAMAJ, VIJAYAWADA / COPY OF THE ORDER FORWARDED TO: - 1. / THE APPELLANT - M/S SREE VIJAYAWADA GUJARATI SAMAJ, D.NO.12 - 11 - 21, R.R.APPARAO STREET, VIJAYAWADA - 520 001 2 . / THE RESPONDENT THE CIT (EXEMPTIONS), HYDERABAD 3 . THE ITO(EXEMPTIONS), RAJAHMUNDRY 4 . , , / DR, ITAT, VISAKHAPATNAM 5 . / GUARD FILE / BY ORDER // TRUE COPY // SR. PRIVATE SECRETARY ITAT, VISAKHAPATNAM