TMI Blog2012 (12) TMI 489X X X X Extracts X X X X X X X X Extracts X X X X ..... . C. Maurya Respondent by : Mr. Girish Dave ORDER Per VIVEK VARMA, JM: This appeal is filed by the department against the order of CIT (A), Mumbai dated, 26.03.2010, wherein the CIT (A) has deleted the addition of Rs. 84,36,407/- made by the AO u/s 115BBC. 2. The facts of the case are that the assessee is a charitable trust engaged in maintaining gaushalas and tending to other animals and birds, by giving them food, shelter and medical aid to disabled animals and other activities, all connected with the protection and feeding of animals and birds, besides doing research in animal husbandry and conducting schools and classes to educate the people in these fields. 3. In the course of assessment proceedings, the AO came across two types of collections i.e. Dharmau Box Collection and Dharmun (other collection) which were at Rs. 5,25,716/- and Rs. 1,00,13,978/- respectively, on which the AO sought the assessee s reply. The assessee gave a detailed reply and relied on the decisions of the Hon ble Bombay High Court in the case of Vallabhdas Karsondas Nehata vs CIT, reported in 15 ITR 113, wherein the Hon ble Bombay High Court held, that supply of fodder to animals and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stration of the Trust with registration no. E-127 under section 50A of the Bombay Public Trusts Act, 1950. Under the said scheme, the Trustees were under an obligation to collect and receive rents, interest, dividends, donations and any other income of the trust. To pay there from the outgoings payable in respect of the trust assets and any other costs, charges and expenses incidental to the management and maintenance of the trust assets and apply the balance funds in the following manner viz., (1) maintenance and up-keep of Panjrapole; (2) keeping of cattle and other animals and birds in the Panjrapole and giving them food, shelter and medical aid and to look after old, infirm and disable animals; (3) carrying out and implementing other existing objects of the Trust as mentioned in the earlier Trust Deeds such as giving financial and other aid and assistance to other sick or weak panjrapole and other institutions of the same or similar nature and other miscellaneous objects. We are enclosing herewith a copy of the Scheme of Management and Administration of Petitioner Trust as approved by the Charity Commissioner under section 50A of the Bombay Public Trusts, Act, 1950 3. For las ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... receipts of the trust. The green grass, gol laddu and dana taken by the visitors from the panjrapole have to be used by them in feeding the animals and birds within the panjrapole and cannot be removed outside the panjrapole premises. The Trust is under an obligation to feed the animals and birds in the panjrapole. Apart from providing medical attention it is also essential to provide the animals and birds in the panjrapole with good food so that they can lead a healthy life. By distributing the green grass, gol laddu and dana among the visitors who in turn use them to feed the animals and birds in the panjrapole, the Trust has in effect defrayed its expenditure on feeding the animals and birds in the panjrapole. It is given approximately for example the quantity of grass given, the size of the ladu, quantity of dana, etc. are not by any exact weight or quantity. The quality of care taken by the Trust of the animals and birds in the panjrapole is reflected by the Gopal Ratna award conferred by the Government of India on the Trust where one of the panjrapole gave the highest quantity of milk for the year 1983-84. The trust has also received various similar awards from state level an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to maintain such details, but the entire exercise would also be meaningless because it would not serve any purpose. However, in respect of amounts received in excess of Rs. 150/- the Trust has system of maintaining record of the identity of the payer indicating the name and address of such person. 9. In the Pandrapole the Appellant has a collection box which carries a notice that NOTICE DONATION IN THIS BOX IS ACCEPTED STRICTLY FOR SHELTER, MEDICAL AID TO LOOK AFTER OLD INFIRM DISABLED ANIMALS LYING IN BOMBAY PANJRAPOLE AS PROVIDED AS OBJECT OF THIS INSTITUTION Therefore the box collection donations were received with a specific direction that such donation was for the infirmary i.e. a hospital or a medical institution. Photos of the said collection box and the notice are enclosed herewith for your ready reference. The same can also be physically verified by a visit to the panjrapole premises at the Head Office at Bhuleshwar. While introducing Financial Bill, 2006 in the Parliament on February 28, 2006 in his budget speech at paragraph 168, the Finance Minister observed: 168. The standing committee on Finance has expressed concern that many charitable in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that it is received for such purpose. The Jain religious belief of Jeeva Daya i.e. compassion towards all living creatures in not only recorded in all Jain Sacred Texts but is actively practiced to this day in the form of various Trusts and individuals pursuing this concept by spending crores of Rupees every year for protecting all animal life. A similar religious and humanitarian outlook prevails amongst the Hindu, Jain Parsi communities. The appellant trust s A/R has submitted before me that the appellant trust is running Gaushalas to care of cows, birds and other animals in the form of food, medicine and other related facilities. They have also submitted that the regular visitors while visiting Gaushalas by the green grass, gol laddu and other eatable items which are available in the campus of the appellant trust. The said visitors buy these items for meager sum of Rs. 10/- to Rs. 150/- only. This is done by regular visitors with sole intention of GO-SEVA having religious faith in the mind. The appellant trust arranged the same in its campus of these items which helps in carrying out the object of the trust. In addition to this, the appellant trust s A/R also submitt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the AO was not justified in making this addition of Rs. 84,36,407/- and accordingly, I considered it proper and appropriate to delete the addition of Rs. 84,36,407/-. The appellant trust gets relief of Rs. 84,36,407/- 6. Against this decision of the CIT(A), department has filed the instant appeal. 7. The DR, representing the department supported and relied upon the order of the AO and submitted that maintaining of the gaushalas and birds and animal hospital does not come under the definition of Charitable , as defined in section 2(15) of the Act, and in any case, maintaining of gaushalas and veterinary hospitals cannot be considered as charitable activity for public good . He, therefore, submitted that utilization of funds, could not be taken to be coming out from the relevant provisions of section 115BBC. He, therefore, submitted that the order of CIT (A) be set aside and the order of AO be restored. 8. The AR appearing on behalf of the assessee relied upon the order of CIT (A) and in addition he submitted that the AO did not take into consideration the two important decisions cited before him. 9. We have heard the arguments from both the sides and also perused the or ..... X X X X Extracts X X X X X X X X Extracts X X X X
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