9911796707
TMI Blog2015 (2) TMI 441X X X X Extracts X X X X X X X X Extracts X X X X ..... notified by the Govt. of India as belonging to a backward class. For achieving its object, assessee undertakes various charitable activities like development and maintenance of grave yard, providing facilities for transporting dead bodies to grave yard, providing services of Gondas to bereaved families, operating community hall at nominal rent or for free to be used for performing marriages etc. and similar other activities. On 26/02/2013, assessee filed an application before the DIT(E) in the prescribed manner for grant of registration u/s 12A of the Act. In course of proceeding, DIT(E) called for books of account and other informations for verification. In response appellant produced books of account and other documents as were called fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ociety, assessee institution cannot be considered as a public charitable institution, hence, cannot be granted registration u/s 12A of the Act. Accordingly, DIT(E) rejected application filed by the assessee. Being aggrieved of the said order assessee is before us. 3. The learned AR submitted before us that both the grounds on which DIT(E) has refused to grant registration are legally untenable. It was submitted that though section 13(1)(b) of the Act provides for restriction in grant of registration to a trust or institution established for the benefit of a particular caste, creed or community, explanation 2 to section 13 provides exceptions by removing such restriction in case of a trust or institution established for the benefit of Sched ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eneficiaries of the society which is the main criteria and not the restriction of the membership. It was submitted, in the region of Yemmiganur, the backward class is predominantly made up of kurnis. If some better endowed individuals of the same class work for the betterment of the individuals of the same social class, it cannot be considered as voilative of the public character of the institution. In this context, the learned AR relied upon decisions of Hon'ble Allahabad High Court in case of CIT Vs. Surji Devi Kunjilal Jaipuria Charitable Trust 186 ITR 728 and in case of CIT Vs. Bharthiya Kharti Sevan Trust, 205 ITR 96. He also relied upon a decision of the Hon'ble Kerala High Court in case of Commissioner of Agricultural I.T. Vs. Abdul ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g the explanation in his own way has concluded, as the said explanation refers to scheduled castes, backward classes, scheduled tribes, Viz., in plural sense, whereas the appellant society is for the benefit of only one community, hence, it will not come within the exception provided therein. In our view a conjoint reading of section 13(1)(b) with explanation 2 to section 13 clearly brings out the intention of legislature that restrictions imposed u/s 13(1)(b) will not apply to a trust or institution created for benefit of scheduled castes, backward classes, scheduled tribes etc. Such legislative intent has to be understood in the broader perspective so as to achieve the purpose for which it is enacted and not to interpret in a narrow manne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t being the case, it cannot loss its character of public charitable trust or institution only because the membership of the society is restricted to kurni community. The Hon'ble Supreme Court in case of Ahmedabad Rana Caste Association Vs. DIT(E), 821 ITR 704 held that an object beneficial to a section of Public is an object of general, public utility and to serve a charitable purpose, it is not necessary that the object should be for benefit of entire public or whole of mankind in a particular country or state. The Hon'ble Apex Court observed, it is sufficient if the intention is to benefit a section of the public as distinguished from a specified individual. Following the aforesaid decision of Hon'ble Apex Court, the Hon'ble Allahabad Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X
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