TMI Blog2011 (5) TMI 261X X X X Extracts X X X X X X X X Extracts X X X X ..... der of the CIT and direct the CIT to grant approval to the assessee-trust under section 80G(5)(vi) of the Act Technically Hindu is neither a religion nor a community. Construction and maintenance of Brij Chaurasi Kos Parikrama way and construction and maintenance of Dharamshala, tents, night stay camps etc., in Brij Chaurasi Kos Parikrama Marg can not be held as religious activity – benefit of section 80G being charitable in nature - Decided in favor of assessee. - 132 (AGRA.) OF 2010 - - - Dated:- 31-5-2011 - P.K. BANSAL, H.S. SIDHU, JJ. S.K. Bajpai for the Appellant. A.K. Sharma for the Respondent. ORDER P.K. Bansal, Accountant Member. This appeal has been filed by the assessee against the order of CIT-I, Agra dated 9-3-2010, whereby the application of assessee for renewal of approval under section 80G was rejected. The effective grounds raised in appeal read as under : "1. The ld. Commissioner of Income-tax has erred in law and on facts in rejecting our application for renewal of approval under section 80G of the Income-tax Act on mere presumptions. 2. The ld. Commissioner of Income-tax has erred in law and on facts in rejecting our applica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the institution or fund derives any income, such income would not be liable to inclusion in its total income under the provisions of sections 11 and 12 or clause (23AA) or clause (23C) of section 10 : Provided that where an institution or fund derives any income, being profits and gains of business, the condition that such income would not be liable to inclusion in its total income under the provisions of section 11 shall not apply in relation to such income, if (a) the institution or fund maintains separate books of account in respect of such business; (b) the donations made to the institution or fund are not used by it directly or indirectly, for the purposes of such business; and (c) the institution or fund issues to a person making the donation a certificate to the effect that it maintains separate books or account in respect of such business and that the donations received by it will not be used, directly or indirectly, for the purposes of such business; (ii) the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund do not, contain any provision for the transfer or application at any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 23C); (ii) Notes on activities of the institution or fund since its inception or during the last three years, whichever is less; (iii) Copies of account of the Institution or fund since its inception or during the last three years, whichever is less. 5. Sub-rule (3) empowers the Commissioner to call for such documents or information from the institution or fund or cause such enquiries to be made as he may deem necessary in order to satisfy himself about the genuineness of the activities of such Institution. Sub-rule (4) lays down that if all the conditions as enumerated in clauses (i) to (v) of sub-section (5) of section 80G are fulfilled by the institution or fund, CIT shall record such satisfaction in writing and grant approval to the institution or fund specifying the assessment year or years for which the approval is valid. Sub-rule (5) empowers the CIT to reject the application for approval after recording the reasons for such rejecting in writing where the CIT is satisfied that one or more conditions laid down in clauses (i) to (v) of section 80G(5) are not fulfilled. This rule also states that no order rejecting the application shall be passed without giving an oppo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ical relief, and the advancement of any other object of general public utility. The construction of Parikrama way and its maintenance and the construction of the Dharmashalas, tents, night stay camps in Brij Chaurasi Kos Parikrama Marg and to provide all facilities to the pilgrims coming to have Parikrama of Brij Chaurasi Kos is a charitable purpose within the meaning of sub-section (15) of section 2 of the Act. It falls within the "advancement of any other object of general public utility". The use of the words "object of general public utility" can be interpreted to cover such trusts where the intention is to give benefit to sizable members of public in contrast to individual or group of individuals. Any person who is going to have Brij Chaurasi Kos Parikrama can use all these facilities. There is no bar for not using these facilities. Even there is no restriction or condition imposed which may permit the use of Brij Chaurasi Kos Parikrama Marg only by the persons who are having faith in a particular sect. The construction of Dharmashalas were considered as advancement of the charitable purpose of trust which was held entitled to exemption under section 11 of the Income-tax Act i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ular country or province. It is sufficient if the intention is to benefit a section of the public as distinguished from specified individuals. The section of the community sought to be benefited must be undoubtedly defined and identifiable by some common quality of a public or impersonal nature. Where there is no common quality of a public or impersonal nature; where there is no common quality uniting potential beneficiaries into a class, it may not be regarded as charitable." In view of the aforesaid dictum of law pronounced by the Apex Court that to serve a charitable purpose it is not necessary that the object should be to benefit the whole of mankind or all persons living in the country or province. Hon ble Apex Court has clearly held that if the intention is to benefit a section of the public as distinguished from specified individuals, it would be a charitable purpose. The section of the community sought to be benefited must be undoubtedly defined and identifiable by some common quality of a public or impersonal nature. There is no doubt by the activities sought to be done or done the tourist for Brij Chourasi Kos Parikarma are benefited. These are not specified individuals ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made only for the public having faith in a particular religion or through these the trust was advancing or propagating the Hindu Religion as alleged by CIT. 9. In the case of Commissioner, Hindu Religious Endowments v. Sri Lakshmindra Thirtha Swamiar of Sri Shirur Mutt AIR 1954 SC 282. Religion has been expressed to mean a matter of faith with individuals or communities and it is not necessarily theristic. There are well known religions in India, like Buddhism and Jainism, which do not believe in God or in any intelligent first cause. A religion undoubtedly has its basis in a system of beliefs or doctrines which are regarded by those who profess that religion as conducive to their spiritual well being, but it will not be correct to say that religions is nothing else but a doctrine or belief. A religion may not only lay down a code of ethical rules for its followers to accept, but it might prescribed rituals and observances, ceremonies and modes of worship which are regarded as integral parts of a religion, and these forms and observances might extend even to matters of food and dress. No material or evidence has been brought on record by the department which may prove that the to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ia, who were not Christians, Muslims, Parsis or Jews. The alleged Hindu religion consists of four castes Brahmins, Kshatriyas, Vaishyas and Sudras belonging ultimately to two schools of law, mitaksharas and dayabhaga. There is, however, no religion by the name Hindu . It only shows that so called Hindu religion has been called for convenience." CIT must be aware of that the Hindu consists of a number of communities having the different Gods who are being worshipped in a different manner, different rituals, different ethical codes. Even the worship of God is not essential for a person who has adopted Hinduism way of life. Thus, Hinduism holds within its fold men of divergent views and traditions who have very little in common except a vague faith in what may be called the fundamentals of the Hinduism. The word community means a society of people living in the same place, under the same laws and regulations and who have common rights and privileges. This may apply to Christianity or Moslem but not to Hinduism. Therefore, it cannot be said that Hindu is a separate community or a separate religion. Technically Hindu is neither a religion nor a community. Under these facts and circum ..... X X X X Extracts X X X X X X X X Extracts X X X X
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