TMI Blog2010 (4) TMI 1104X X X X Extracts X X X X X X X X Extracts X X X X ..... the object of giving education to the poor deserving students and orphans, providing food, clothing, shelter and medical aid to the needy and to provide assistance to destitute and to run educational institutions. According to the learned Representative of the assessee, the assessee received donations from the Indian nationals and also from foreign countries and the donations received were spent broadly for payment of school fee of various children and supply of study material to the children. The learned Representative for the assessee further explained that the assessee society paid a part of school fee and supplied study material to the students selected for this purpose. According to the learned Representative of the assessee, the soci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fore, it was held that the dominant purpose of the trust was propagation of the Jain religion and to serve its followers and the income of the trust could not be treated as an allowable item of expenditure. The learned Representative explained that in the case before us, the object of the society is to give education aid to all poor and deserving children irrespective of any religion or community. The object of the society was not restricted to any particular religion/community. 3. Referring to the recent judgment of Jammu Kashmir High Court in the case of Ghulam Mohidin Trust v. CIT [2001] 168 CTR (J K) 367 : [2001] 248 ITR 587 (J K), the learned Authorized Representative for the assessee submitted that in this case also the object of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s shown as to give aid to all poor and deserving students the assessee paid full fees only to Muslim students. Referring to the order of the Director of IT (Exemptions), the learned Departmental Representative pointed out that the assessee had paid school fee to 1,076 students, out of which 1,046 were from the Muslim community. The Director of IT (Exemptions) after examining the activities of the assessee found that the benefit was predominantly directed towards Muslim religious community. Even though the object was shown as general, applicable to all communities but in practice, the society applied its income only for the benefit of Muslim religious community. Therefore, according to the learned Departmental Representative, the Departmenta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me only to a particular religious community and therefore there is violation of provisions of s. 80G(5) of the Act. We have carefully gone through the provisions of s. 80G(5) of the Act. Sec. 80G(5)(iii) clearly says that the institution or fund which is not expressed to be for the benefit of a particular religious community or caste, is entitled for the approval in respect of donations received. 6. Let us examine whether the assessee society is expressed to be for the benefit of any particular community or caste. The object of the society as extracted by the Director of IT (Exemptions) does not restrict its application to any particular community or caste. The entire object clause as extracted by the Director of IT (Exemptions) in his i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not expressed to be for the benefit of any particular religious community or caste. The legislature employed the words not expressed to be . Therefore, we have to see what is the meaning of the words not expressed to be . The word expressed means a declaration or expression in writing or orally. The apex Court had an occasion to consider the word expressed in State of Bombay v. Purushottam Jog Naik AIR 1952 SC 317. While considering the Art. 166 of the Constitution of India, the Apex Court found that the meaning of the word expressed is to make known the opinion or the feelings of a particular person. When a person is arrested by a Government employee viz., Secretary to Government and tells him in the order that this is bein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Muslims or Hindus. We cannot expect a situation where both the Muslims and Hindus would have equal population in that particular area. In such a situation, when some of the people founded a trust to extend their help to the poor people in a locality where Muslim religious community lives predominantly, naturally the beneficiaries would be more from the Muslim religious community than from other community. So long as the trustees or the managing committee of the foundation have not expressed or restricted their benefits to Muslim community alone then we cannot say that the organization was expressed to be for the benefit of a particular religious community. In this case admittedly the respective principals of the schools selected the poo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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