ANNAPURNA CHARITABLE TRUST,BANASKANTHA vs. THE CIT(EXEMPTION), AHMEDABAD

Facts

The assessee, Annapurna Charitable Trust, was denied registration under section 80G(5) of the Income Tax Act, 1961, by the CIT(E). The denial was based on the ground that one of the trust's objects, "to raise and run service camps for pilgrims at religious places," was considered religious in nature. The trust had earlier obtained registration under section 12AB.

Held

The Tribunal held that the denial of registration under section 80G(5) was incorrect. It reasoned that Section 13(1)(b) of the Act, which disallows exemption for trusts primarily for a particular religious community, is applicable only at the time of granting exemption (under Section 11), not at the time of granting registration (under Section 12A). The Tribunal noted that the trust's objects were largely charitable for the general public, despite having some religious undertones.

Key Issues

Whether denial of registration under section 80G(5) is justified solely based on a religious-oriented object when the trust's overall purpose is charitable and Section 13(1)(b) is applicable at the stage of exemption, not registration.