TMI Blog2007 (9) TMI 455X X X X Extracts X X X X X X X X Extracts X X X X ..... ent was framed under section 143(3) on 5-1-1996 at a total income of Rs. 4,99,580. It was held that since the appellant trust is not registered under section 12A of the Act, the benefit of exemption under section 11 cannot be given. Thus, after reducing the expenditure as per income and expenditure account, the surplus was brought to tax. Subsequent to the passing of the said assessment order, the appellant society had been granted registration under section 12A vide order dated 4-11-1996 with effect from 1-4-1988. The assessee, therefore, requested for rectification of the order and for claim of exemption under section 11 of the Act. The rectification application was rejected and the order refusing rectification under section 154 was con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gible for participation. The conference was held for studies on eliminating distinction in the body of Christ, Church growth and developing core staff etc. The statement of chief functionary was recorded about the purpose of the conference. It was stated that the special conference was organized for Pastors, church leaders and delegates from the churches to give opportunity to come together and to give teachings based upon Bible value and ethics. The Assessing Officer also observed that literature was distributed for uplift of disturbed people. The literature contained mainly the stories and teachings from Bible. The Assessing Officer was, therefore, of the opinion that the activities have been carried out in such a way that it is for the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tted that the appeal before the Tribunal was against an order refusing to rectification under section 154. It is only the order under section 154 has to be amended and in such a rectification, the income cannot be exceeded as originally assessed. It was also submitted that the benefit of exemption under section 11 cannot be denied as the assessee is to be treated as charitable as well as religious trust and hence, section 13(1)( b ) is not attracted. Learned CIT(A) confirmed the action of the Assessing Officer and hence, this appeal. 2.4 Learned counsel for assessee reiterated the submissions made before the CIT(A). He also relied upon following case laws in support of his arguments : (1) CIT v. Chandra Charitable Trust [2006] 156 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ous year of the person in receipt thereof ( a ) ** ** ** ( b )in the case of a trust for charitable purposes or a charitable institution created or established after the commencement of this Act, any income thereof if the trust or institution is created or established for the benefit of any particular religious community or caste," The phrases charitable purpose is defined under section 2(15) of the Act which reads as under : "Section 2(15) Charitable purpose includes relief of the poor, education, medical relief and the advancement of any other object of general public utility." The exemption under section 11(1)( a ) is available where the income derived from property held under trust for char ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ished after the commencement of Income-tax Act ( sic ). In each case the authority is required to find out whether the trust for charitable purposes is established for the benefit of a particular religious community or caste. If it is so established, then the provisions of section 11 would not be applicable. Thirdly, clauses ( c ) and ( d ) carve out an exception in the case of a trust for charitable or religious purposes or a charitable or religious institution. It provides for certain cases in which any income thereof enures, or is used or applied, directly or indirectly, for the benefit of any person referred to in sub-section (3). In clauses ( c ) and ( d ), the Legislature has used the phrase trust for charitable purposes or charitable ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ism is a lifestyle or a religion, would lose much of its importance in view of the judgment of this court in the matter of CIT v. Barkate Saidiyah Society ( supra ). If Jainism is accepted to be religion and from the covenants of the trust deed it can be spelt out that not only to propogate Jainism or help and assist maintenance of the temple, Sadhus, Sadhvis, Shraviks and Shravaks, yet other goals are set in the trust deed, then the trust would become a charitable trust, so also a religious trust or it can be addressed as a charitable religious trust, and, if that be so, section 13(1)( b ) would not be applicable. Once the basic question is answered against the interests of the revenue, then the other questions can conveniently be deci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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