TMI Blog2015 (5) TMI 1013X X X X Extracts X X X X X X X X Extracts X X X X ..... o grant registration under section 12AA of the Income-tax Act, 1961 to the assessee-trusts. - Decided in favour of assessee - I. T. A. No. 851/Hyd/2014, I. T. A. No. 852/Hyd/2014, I. T. A. No. 853/Hyd/2014, I. T. A. No. 859/Hyd/2014 - - - Dated:- 29-5-2015 - SMT. ASHA VIJAYARAGHAVAN (Judicial Member) and INTURI RAMA RAO (Accountant Member) S. Rama Rao for the appellant. D. Sudhakar Rao for the respondent. ORDER 1. These four appeals are filed by four different assessee-trusts, viz., (1) Raghunath Das Damodardas Lohia Charitable Trust, Hyderabad (2) Kaushalya Bai Srinivas Lakhotiya Charitable Trust, Hyderabad (3) Kanta Bai Govind Kumar Lohia Charitable Trust, Hyderabad, (4) Ayodhya Bai Damodardas Lohia Charitable Trust, Hyderabad against the identical order of the Director of Income-tax (Exemptions), Hyderabad dated February 26, 2014, in denying the registration under section 12AA of the Income-tax Act, 1961. Since common issue is involved in these appeals, the appeals are heard together and are being disposed of by the single consolidated order. 2. Briefly stated, the assessee-trusts had filed an application in Form 10A seeking registration under section 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... v. CIT [2001] 248 ITR 587 (J K), the above trust, whose income would not be eligible for exemption, would consequently not be eligible for registration under section 12AA of the Act. In this context, it is pertinent to refer to the following observation made by the hon'ble Jammu and Kashmir High Court in the said decision in Ghulam Mohiddin Trust v. CIT (supra) (page 593) : '. . . because the law is well-settled that if there are several objects of the trust, some of which are charitable and some non-charitable, and the trustees in their discretion are to apply the income to any of the objects, the whole trust would fail and no part of its income would be exempt from tax. The reason is that in such a case no definite part of the property or its income is allocated for charitable purposes and it would be open to the trustees to apply its income to any of the non-charitable objects or religious purposes.' (at pages 593-594) 2.1. . . . It may be further mentioned that, while clarifying on section 11 of the Act, which deals with exemption of income in case of a public trust or institution, and in which there is reference to term 'charitable purposes' or 'r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the assessees have filed the present appeals before the Tribunal and has raised the following grounds. For the sake of reference we reproduce the grounds raised in I. T. A. No. 851/Hyd/2014 in the case of Raghunath Das Damodardas Lohia Charitable Trust. 1. The order of the learned Director of Income-tax (Exemptions) is erroneous both on facts and in law. 2. The learned Director of Income-tax (Exemptions) erred in holding that the activities of the appellant include both charitable and religious. The Director of Income-tax (Exemptions) ought to have considered the fact that the activities of the appellant are only charitable and do not include religious activities. 3. In the alternate and without prejudice to the above contention, the Director of Income-tax (Exemptions) erred in holding that the appellant is not eligible for registration under section 12AA of the Income-tax Act simply because both charitable and religious activities were carried on by the appellant herein. 4. The Director of Income-tax (Exemptions) ought to have seen that the activities carried on by the appellant are only charitable activities and ought to have granted registration under section 12AA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trators to inhabitants of India, who were not Chris tians, 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'. The Commis sioner of Income-tax 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 Christi anity or moslem but not to Hinduism. Therefore, it cannot be said that Hindu is a separate community or a separate religion. Techni ..... X X X X Extracts X X X X X X X X Extracts X X X X
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