TMI Blog2017 (2) TMI 688X X X X Extracts X X X X X X X X Extracts X X X X ..... ersons, medicines, cold water, night shelter and Dharamshala etc. In our considered view, both these objects definitely fall under the category of Charitable purpose and cannot be construed as solely for the benefit of a particular religious community. Thus we hereby direct the ld. CIT (Exemption) to grant registration to the assessee trust. - Decided in favour of assessee. - ITA No. 905/JP/2016 - - - Dated:- 11-1-2017 - Shri Kul Bharat, JM And Shri Vikram Singh Yadav, AM Assessee by : Shri P.C. Parwal (CA) Revenue by : Shri H.V. Gurjar (CIT) ORDER Per Shri Kul Bharat, JM The appeal by the assessee is directed against the order of ld. CIT (Exemptions), Jaipur dated 16.09.2016. The only effective ground raised by the assessee in the appeal is as under :- The learned Commissioner of Income Tax has erred on facts and in law in refusing the registration to the assessee u/s 12AA of Income Tax Act, 1961 by holding that the objects of the trust are for the benefit of particular religious community and therefore provisions of section 13(1)(b) are attracted and it cannot be held as a charitable trust. 2. Briefly stated the facts are that the assessee had ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , DIT(E) found that one of main aims and objects of assessee society was benefit of Christian minority community in particular and others in general. Thus, assessee society was established mainly for benefit of one particular community and same therefore, could not be considered as public charitable institution. DIT(E) held that specific stipulation made in relevant rules and regulations for appointing Principal for schools and colleges, only from particular community, again was sufficient to show that assessee society was established for benefit of particular community. Assessee society was not held eligible for registration u/s.12AA. Application filed by assessee for registration was rejected. Held, if registration applied for u/s 12AA was not granted for violation of principles of S.13(1)(b), and if it was ultimately found that assessee trust actually accomplished objects only for benefit of others in general, without there being any activity undertaken for benefit of Christian minority community in particular, assessee would be wrongly deprived of any benefits, that otherwise were available u/s 11 or S.12. Wordings in S. 13, made it explicitly clear that statutory provisions be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he noticed that trust has given scholarship to 4 students who all belong to Jain Community. In these facts, it was held that section 13(1)(b) do not apply to registration u/s 12AA. If condition of section 13(1)(b) are violated, exemption u/s 11 is not be allowed but such violation did not effect registration. Further, it is not the case of revenue that student who got scholarship were not belonging to poor families. Therefore, CIT is directed to allow registration u/s 12AA to the assessee. Kul Foundation vs. CIT (2015) 43 CCH 0115 (Pune) (Trib.) At the time of grant of registration, the powers of the CIT enshrined under section 12AA of the Act, provided that the CIT is to look into the objects of the Trust and the genuineness of its activities. Merely because, one of the objects of the Trust was for the benefit of upliftment of the Jain community as against the pre-dominant object of providing education by the Trust or the Institution, the issue arises whether the grant of registration under section 12AA of the Act could be denied to the assessee. We find no merit in the order of CIT in observing that the said benefit being provided to the Jain community would attract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nted and the person is refused the registration under s. 12A, he would not be entitled to claim any benefit available under s. 11 or 12 and there will be no occasion to the AO to invoke or apply s. 13 in his case. This position would not only be contrary to the scheme of the Act as laid down in ss. 11, 12, 12A, 12AA and 13 but the same may also cause prejudice/hardship to the persons in certain cases. The phraseology of s. 13 makes it explicitly clear that the said provisions become operative or relevant only at the stage of assessment when the AO is required to examine the claim of the assessee for benefits under s. 11 or s. 12 while computing the total income of the assessee of the relevant previous year. The application of s. 13 thus falls within the exclusive domain of the AO and the provisions contained therein can be invoked by him while framing the assessment and not by the CIT while considering the application for registration under s. 12AA. Keeping in view the reasons given above, the action of the Director of IT (Exemptions) in refusing to grant registration to the assessee trust on the ground of violation of the provisions of s. 13(1)(b) was not justified especially when ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r benefit of a particular religious community. In our considered view, the said view may not be the correct interpretation of the provision. 49. In the present case, the objects of the respondent-trust are based on religious tenets under Quran according to religious faith of Islam. We have already noticed that the perusal of the objects and purposes of the respondent-trust would clearly demonstrate that the activities of the trust though both charitable and religious are not exclusively meant for a particular religious community. The objects, as explained in the preceding paragraphs, do not channel the benefits to any community if not the Dawoodi Bohra Community and thus, would not fall under the provisions of Section 13(1)(b) of the Act. Diocese of Pune (CNI) vs. CIT (2015) 42 ITR (Trib.) 0348 (Pune) decision dated 31.03.2015 Assessee trust was created vide Deed of Trust and was registered vide Certificate of Registration issued by Asst. Charity Commissioner. Commissioner requisitioned assessee to furnish certain documents and details of charitable activities carried out by assessee trust in last three years, proof of filing of return of income. Commissioner held that ob ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gious nature and since charitable purpose did not include any purpose, whole or substantially whole of which was of religious nature. Exemption granted was withdrawn by CIT. ITAT allowed appeal of assessee and set aside order of CIT(A) holding that assessee was entitled to registration u/s 80G(5). Assessee was registered as charitable institution u/s 12A and registration granted there under was valid even for current assessment year. ITAT further noticed that assessee society was established and run by minority Christian community but as aim and object of assessee was to train professionals in field of medical and health care and also to provide medical facilities in their hospitals to all persons of any caste, creed, race, language, religion etc. Activities carried out by assessee were charitable in nature. Assessee was registered as charitable institution u/s 12A and said registration was being continued to be granted to assessee society even for year under consideration. Primary aim of assessee society was to train men and women as health professionals in spirit of Jesus Christ and said facility of training health professionals and medical care was to be provided without consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of sec. 80G(5)(iii). However, in the present case, the object of worshipping Lord Shiva, Hanumanji, goddess Durga maintaining of temple cannot be regarded as object of advancement, support or propagation of a particular religion. They do not relate to Hindu religion as Lord Shiva, Hanumanji goddess Durga do not represent any particular religion, they are merely regarded to be the superpower of the universe. No material or evidence has been brought on record by the Department to prove that any person coming, worshiping maintaining the temple has to follow a particular code of ethical rules has to carry out the prescribed rituals, observances, ceremonies modes of worship. Anybody can come to the temple avail of all the facilities available to the public at large. Even if the object is regarded to be religious, Hinduism is a way of life as such not a religion. Hindus consists of number of communities having different gods who are worshipped in different manner by different rituals. Even worship of god is not essential for a person who has adopted Hinduism way of life. Hinduism holds within its fold men of divergent view traditions who have very little in common exce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upra) also, it was held in Para 38 of the order that out of 6 objects, 2 objects at clause (c) and (f) were religious in nature and were restricted to specific community but other objects trace their source to holy quran and resolve to abide by the path of godliness shown by Allah and therefore it would not be sufficient to conclude that the entire purpose and activities of the trust would be purely religious in colour. Therefore, considering this decision and other decisions referred above, the cases relied by the Ld. CIT(E) are distinguishable on facts. The ld. Counsel also placed reliance on the decision of the Coordinate Bench in the case of Shri Digamber Jain Mandir Godhaji in ITA No. 742/JP/2015 wherein the order of ld. CIT (Exemptions) was set aside and by following the judgment of Hon ble Supreme Court rendered in the case of CIT vs. Dawoodi Bohra Jamat, 364 ITR 31 directed the ld. CIT to grant registration to the assessee trust. In view of above, the Ld. CIT(E) be directed to grant registration u/s 12AA of the IT Act, 1961 to the trust. 3.1. The ld. D/R has opposed the submissions and supported the orders of the authorities below. 3.2. We have heard rival co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be regarded as society formed with a charitable purpose within meaning of section 2(15) and, therefore, its application seeking registration under section 12AA was to be rejected Held, Yes (Para 12)(in favour of revenue) IT : Where assessee-society was formed with an object to provide accommodation and facilities for performance of marriages and other auspicious functions to members of a particular community, viz.Telugu BeriVysia Community, it could not be regarded as society formed with a charitable purpose within meaning of section 2(15). 8. In all the above judgments Hon ble Court/Tribunal have held that if the objects of the society/association are for the benefit of a particular religious community then it is not a charitable organization. In the case of present applicant the membership is limited to persons belonging to particular community only and all the objects are for the benefit of Jain Community. This consist of a very limited and small group and not the public at large. In section 2(15) the legislature has used language of great amplitude charitable purpose which not only include the specific purpose of education medical etc. but also advancement of other ..... X X X X Extracts X X X X X X X X Extracts X X X X
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