Trust must be granted registration u/s 12AA once the requirements as provided u/s 12A are fulfilled:

CIT rejected petitioner’s application for registration of Trust u/s 12AA on the ground that since the Trust was established for the benefit of “Leuva Patel Community”, as per S.13(1)(b), its income shall not be excluded from total income as provided u/s 11 or 12. The Hon’ble High Court held that “Leuva Patel Community” cannot be considered as “Religious community or caste” as provided u/s 13(1)(b). Further, while considering an application for registration of Trust, CIT must make a clear distinction between requirement of “Registration” and requirement for “claiming tax benefit”. Insofar as S.12AA is concerned, CIT must decide whether trust fulfils necessary requirements of registration as provided u/s 12A.

[LEUVA PATEL SEVA SAMAJ TRUST - TAX APPEAL NO.59 of 2012 - GHC]