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Income Tax Appellate Tribunal, RANCHI BENCH, RANCHI
Before: Shri S.S.Godara & Dr. A.L. Saini
आदेश /O R D E R PER BENCH (oral):- This assessee’s appeal arises against the Commissioner of Income Tax (Exemption)-Patna’s order dated 13.03.2019, denying registration in proceedings u/s. 12AA of the Income Tax Act, 1961; in short ‘the Act’ Heard both the parties. Case file perused.
Case file suggests that the CIT(Exemption) has declined the assessee’s sec. 12AA registration filed on 05.11.2018 by his twin folded reasoning this trust has been set up to provide benefits to only Patel “Community” and its activities are not genuine; respectively. We do not any merit in either of these findings. Hon’ble Gujarat high court in (2014) 42 taxmann.com 181 (Guj) Commissioner of Income Tax, Rajkot-II vs. Leuva Patel Seva Samaj Trust holds that the former question of a trust set up for providing benefits to a Patel Seva Sangha Vs. CIT(Ex), Patna Page 2 particular community does not avail ground to deny sec. 12AA registration since the issue arises during the course of exemption proceedings u/s 11 only.
Coming to latter aspect of the non-genuine of activities, we take note of hon’ble apex court’s judgment in M/s Ananda Social & Educational Trust vs. CIT in Civil Appeal Nos. 5437-5438 of 2012 dated 19.02.2020 that only an assessee’s objects have be examined at the time of granting sec.12AA registration and not activities. We thus reverse the CIT(Exemption)’s twin reasoning and hold the assessee as entitled for the impugned sec. 12AAA registration.