9911796707
TMI Blog2015 (2) TMI 495X X X X Extracts X X X X X X X X Extracts X X X X ..... , Hostels and boarding house for the promotion of elementary education, higher education, Technical, Vocational, Professional education for the benefit of Christian minority community in particular and others in general." According to the learned Director of Income-tax(Exemption), going by the specific emphasis laid on a particular community in the last part of the aforesaid object clause, the assessee society was established mainly for the benefit of that particular community and the same therefore, could not be considered as a public charitable institution, as held by the Hon'ble Supreme Court in the case of Kamala Town Trust (217 ITR 699), He also noted from the relevant rules and regulations of the assessee society that the Principal of the school run by the assessee society was to be appointed only from Christian community. He held that such specific stipulation made in the relevant rules and regulations for appointing the Principal only from a particular community again was sufficient to show that the assessee society was established for the benefit of a particular community and it, therefore, could not be considered as a public charitable institution eligible for registrati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Supreme Court in the case of Ahmedabad Rana Caste Association V/s. Director of Income-tax(Exemption) (82 ITR 704) and Hon'ble Allahabad High Court in the case of CIT V/s Surji Devi Kunji Lal Jaipuria Charitable Trust (186 ITR 728). 6. The learned counsel further contended that even if the assessee society is held to be established for the benefit of any particular religious community, as envisaged under S.13(1)(b)of the Act, and there is violation of the said provision, it is not relevant for the purpose of granting registration under S.12AA, as the provisions of S.13(1), going by the specific language used therein, are applicable only for the specific purpose of making the assessment. In support of this contention, he relied on the decision of the Lucknow Bench of the Tribunal in the case of Malik Hasmullah Islamic Educational and Welfare Society V/s. CIT(138 ITD 519). 7. The Learned Departmental Representative, on the other hand, strongly relied on the impugned order of the learned Director of Income-tax(Exemption) in support of the Revenue's case. He submitted that the assessee society, as per the relevant objects clause, was established for the benefit of Christi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufficient if the intention is to benefit a Section of the public as distinguished from a specified individual. Relying on this decision of Hon'ble Supreme Court in the case of Ahmedabad Rana Caste Association (supra), Hon'ble Allahabad High Court in the case of Surji Devi Kunji Lal Jaipuria Charitable Trust (supra) has held that trust created for giving medical aid, social welfare and upliftment of poor members of a particular community, viz. Vaish community, is, therefore, for charitable purposes. To the similar effect is another decision of Hon'ble Allahabad High Court in the case of CIT v. Pt. Ram Shankar Misra Trust (222 ITR 252) wherein it was held that expenditure incurred by a trust for the benefit of one community is an expenditure incurred on a public charitable object. The proposition propounded by Hon'ble Supreme Court as well as by Hon'ble Allahabad High Court in the aforesaid judgments clearly shows that the objects of the assessee society, notwithstanding the relevant clause indicating the object of the assessee society to work for the benefit of Christian minority community in particular, were of charitable nature and since the powers of the CIT/D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... id provisions can be applied or invoked only at the time of computation of total income of the previous year of the person who is claiming exemption Under Section 11 or Section 12. Both these situations contemplated in Section 13 can arise only and only if registration Under Section 12A is granted to the said person. If the same is not granted and the person is refused the registration Under Section 12A, he would not be entitled to claim any benefit available Under Section 11 or 12 and there will be no occasion to the Assessing Officer to invoke or apply Section 13 in his case. This position would not only be contrary to the scheme of the Act as laid down in Sections 11, 12, 12A, 12AA and 13 but the same may also cause prejudice/hardship to the persons in certain cases. For instance, the relevant objects clause of the assessee society in the present case, as noted above, emphasises the working of the assessee society for the benefit of Christian minority community in particular. Nevertheless the said object also permits the assessee society to work for the benefit of others in general. In this situation, if the registration applied for under S.12AA is not granted for violation of p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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