IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION INCOME INCOME INCOME TAX APPEAL (L) NO. 1007 OF 2006 TAX APPEAL (L) NO. 1007 OF 2006 TAX APPEAL (L) NO. 1007 OF 2006 WITH WITH WITH INCOME INCOME INCOME TAX APPEAL (L) NO. 1006 OF 2006 TAX APPEAL (L) NO. 1006 OF 2006 TAX APPEAL (L) NO. 1006 OF 2006 The Director of Income Tax ... Appellant V/s. Sadharmik Utkarsh Trust ... Respondent Mr. Shiv Motariya for the appellant. Mr. Prakash Jhaveri, Trustee of respondent in person present. CORAM CORAM CORAM : H.L. GOKHALE & : H.L. GOKHALE & : H.L. GOKHALE & V.R. V.R. V.R. KINGAONKAR,JJ. KINGAONKAR,JJ. KINGAONKAR,JJ. DATED DATED DATED : 10th August, 2006 : 10th August, 2006 : 10th August, 2006 P.C. . These two appeals are filed by the Director of the Income Tax (Exemption) concerning the assessment of the respondent trust for the Assessment Year 1994-95 and 1996-97. What has happened in both these matters is that the Income Tax Appellate Tribunal has accepted the submission of the respondent trust that it is a religious trust and, therefore, is entitled to the benefit under section 11 of the Act. It was contended on behalf of the Revenue that the Assessee cannot get the benefit in view of the provisions under section 13(1)(b) of the Act. Now, what is to be noted is that the restriction under section 13 (1)(b) will apply to a Charitable Institution, if its activities are restricted to a particular religious community. ( 2 ) Section 11 of the Act under which the benefit is sought by the respondent trust is available with respect to the income from the property held by a trust for charitable or religious purposes. The benefit is available to the trust which is wholly for religious purpose. In a situation where the trust is declared to be a charitable trust, but collects monies from different communities and it restricts benefit to a particular community, the restriction under section 13(1)(b) will come to apply. A trust which declares itself to be a religious trust and undoubtedly, therefore, collects its contribution from a particular community, the benefit under section 11 cannot be denied and the restriction under section 13 (1)(b), cannot be brought into application. In the circumstances, we do not find any error in the order passed by the Tribunal. Both the appeals are dismissed. [H.L. [H.L. [H.L. GOKHALE, J.] GOKHALE, J.] GOKHALE, J.] [V.R. [V.R. [V.R. KINGAONKAR, J.] KINGAONKAR, J.] KINGAONKAR, J.]