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Vide (2020)16 ITR-OL 394 the Gujarat high court held that at the time of registration of the trust under section 12AA of the Act, the Deptt is required to consider only the “nature of its objects” and “genuineness of the activities” of the trust. In this case clause 22 of the “will” creating the “trust”, provided that the trust would give help to Sindhis as far as possible with nominal charges and the balance, if any, after giving benefit to the Sindhi community, should be given to the non-Sindhi community. This lead CIT to the belief that the primary purpose of the trust was to benefit the Sindhi community. To this the Court held that the trust is a charitable and religious trust that does not give benefit to any specific religious community only, and therefore, it cannot be held that section 13(1)(b) of the Act could be attracted to the trust, and thereby, it would be entitled to get registration under section 12A of the Act.

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