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"41.Therefore, the objects of the trust exhibit the dual tenor of religious and charitable purposes and activities. Section

11 of the Act shelters such trust with composite objects to claim exemption from tax as a religious and charitable trust subject to provisions of Section 13. The activities of the trust under such objects would therefore be entitled to exemption accordingly.

42.We would now proceed to examine the objects under the provisions of Section 13(1)(b) of the Act. It becomes amply clear from the language employed in the provisions that Section 13 is in the nature of an exemption from applicability of Sections 11 or 12 and the examination of its applicability would only arise at the stage of claim under Sections 11 or 12. Thus, where the income of a trust is eligible for exemption under section 11, the eligibility for claiming exemption ought to be tested on the touchstone of the provisions of section 13. In the instant case, it being established that the respondent-trust is a public charitable and religious trust eligible for claiming exemption under Section 11, it becomes relevant to test it on the anvil of Section 13.

50.In that view of the matter, we are of the considered opinion that the respondent-trust is a charitable and religious trust which does not benefit any specific religious community and therefore, it cannot be held that Section 13(1)(b) of the Act would be attracted to the respondent- trust and thereby, it would be eligible to claim exemption under Section 11 of the Act."

11. On a perusal of the above, we find that the Hon'ble Supreme Court has categorically held that if any trust incurs expenditure towards charitable objects as well as religious objects, then the provisions of section 13(1)(b) of the Act are not applicable. In other words, the Hon'ble Supreme Court has held that where the trust or society is found to have been engaged in charitable activities also, the provisions of section 13(1)(b) of the Act cannot be invoked merely because certain activities may incidentally benefit a particular religious community. In this regard, we have gone through page no. 47 of the assessment order, which is to the following effect:

Explanation: For the purposes of this sub-section, the following shall mean "specified violation",--

(a) Where any income derived from property held under trust, wholly or in part for charitable or religious purposes, has been applied, other than for the objects of the trust or institution; or

(b) The trust or institution has income from profits and gains of business which is not incidental to the attainment of its objectives or separate books of account are not maintained by such trust or institution in respect of the business which is incidental to the attainment of its objectives; or

iii. pass an order in writing, refusing to cancel the registration of such trust or institution, if he is not satisfied about the occurrence of one or more specified violations; iv. forward a copy of the order under clause

(ii) or clause (iii), as the case may be, to the Assessing Officer and such trust or institution.

Explanation: For the purposes of this sub-section, the following shall mean "specified violation",--

(a) Where any income derived from property held under trust, wholly or in part for charitable or religious purposes, has been applied, other than for the objects of the trust or institution; or