Amritsar Diocese of Believers Eastern Church v. Commissioner of Income-tax (Exemptions) – [2023] (Amritsar -Trib.)
The assessed party was a philanthropic and religious trust established for the general public’s welfare, irrespective of caste, creed, or religious affiliation. It submitted a section 12A registration application.
The assessee was refused registration by the Commissioner (Exemptions) on the grounds that it had broken section 13(1)(b)’s rules by serving only the Christian community. An angry assessee presented the Tribunal with the current appeal.
The Tribunal determined that the assessee’s object clause expressly stated that the trust was philanthropic in nature and that charitable giving would be made without regard to caste or creed. The object is never prohibited by section 13(1)(b) in the first place. The revenue authorities will examine the principal object of the trust and the activities related to that object upon registration of the trust. Additionally, revenue had not commented negatively on the activities of the assessee-trust.
Furthermore, it was stated clearly in the object of trust that section 13(1)(b) has not been broken. During the hearing, the department was unable to present any evidence in opposition to the assessee’s claim. As a result, the Commissioner’s Order (Exemption) was overturned, and the Revenue is now required to issue the registration to the Assessee-Trust as soon as possible.
