TMI Blog2018 (3) TMI 139X X X X Extracts X X X X X X X X Extracts X X X X ..... er Mahadev Temple and not general public. As most of the expenditure is held for the benefit of a particular community or a religious group called ‘SAMAJ families’ and so, we are of the opinion that the Trust is not created for charitable or religious purposes for general public. Accordingly, it is not entitled for registration. The community is identified with a religious belief and royalty to a particular deity and that too for families residing in Hyderabad. Even the receipts are from the Members [very few amounts of donation and except the other receipts and the expenditure is also seems to be within the community]. - Decided against assessee. - I.T.A. No. 1699/HYD/2014 - - - Dated:- 28-2-2018 - Smt. P. Madhavi Devi, Judicial Member And Shri B. Ramakotaiah, Accountant Member For Assessee : Shri S. Rama Rao, AR For Revenue : Shri P. Soma Sekhar Reddy, DR ORDER Per B. Ramakotaiah, A. M. The present appeal is by assessee against the order of the Director of Income Tax (Exemptions), dated 28-08-2014 not granting the registration u/s. 12A of the Income Tax Act [Act]. 2. The appeal was dismissed on 18-04-2016 for want of prosecution by assessee and was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further appeal. On such appeal, the Co-ordinate Bench of ITAT vide its order in ITA No.476/Hyd/2013 dt.16- 07-2013 have remitted the entire matter to the file of the DIT(E) directing to give one more opportunity to assessee to present its case. The observations made by Co-ordinate Bench of ITAT at para 5 of the said order are as under: 5. We have heard both the parties and perused the material on record. We have gone through para 3 of the DIT(E) order. In our opinion, it is appropriate to give one more opportunity to the assessee to put forth its case. Accordingly, the entire issue is remitted back to the file of the DIT(E) to give one more opportunity to the assessee to present its case before him. 4. In the consequential proceedings, the DIT(E) considered the issue and did not grant registration mainly on the reason that (a) the original application in 1988 could have been disposed-off; (b) the Trust is meant for achieving overall prosperity of the members of Samaj; (c) the Trust is for both charitable and religious purposes and; (d) the provisions of registration and case law support either the same should be charitable or religious Trust, the Trust being both, is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the strive [Members of the Shri Visa Vad Nager Vanik Samaj Families]. iii. To provide for the education of Citizens and to undertake all such activities so as to imbibe in them; irrespective of Caste, Creed the spirit of service and dedication and thereby provide for upliftment of their intellectual cultural, moral physical and alround welfare. iii. To help, aid, assist and contribute towards educational, medical and provide for compassionate allowance to the needy Members of the community. iv. To celebrate SEL {Feast} of the SHREEJI . v. To obtain and acquire such moveable and immovable properties as may be useful for purpose of the SAMAJ and accept unconditional Donations. Assessee claims that this Trust has submitted for registration u/s. 12A vide application dt. 05-09-1988, the fate of which either the department or assessee is not in a position to explain, except, as the Ld.DIT(E) opines, that application could have been rejected. Had it been accepted, assessee would have certainly have got the benefit of claiming exemption and certainly would have placed it on record. 8.1. Be that as it may, vide the General Body Meeting held on 03-11-2005, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Family 1. Any Members whose Kitchen is separated his family shall be treated as a separate family. 2. After separation of Kitchen the same shall be informed to the Committee so that invitations etcetera can be given separately. 3. Gist or List of families appears on the last page. 8.4. There are rules for regarding wedding or marriages. 1. Family Heads will invite all members for Betrothal Ceremony. 2. At the time of Betrothal Ceremony Shreeji Bait shall be paid as per the wish of both {Bridegroom and Bride} the parties. They shall sign in the Books of SAMAJ. 3. Both the parties shall pay ₹ 101 {Rupees One Hundred and One} each towards SAMAJ FUND and {Rupees One Hundred and One} each towards offering as Hatkeshwar Mandir Bait. 4. Wedding/Marriage Invitations will be given wherein details of Gruha Shanti and Lunch and Dinner timings will be mentioned. In functions other than Weddings videlicet MUNDAN / SAPATVASI the invitations by Telephone will be sufficient. 5. While performance of wedding or marriage the Bride s party shall offer Lunch or Dinner. 6. Nani Shakkar {offerings to Bride} can be alone be done as per individual s d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the Members of the family of SAMAJ , no evidence of any charitable nature for general public has been placed on record. 8.6. The copies of the returns placed on record from 2008-09 to 2013-14 do indicate that there is income from Shri Hatkeshwar Mahadev Mandir and income for other activities which was claimed exemption to a small extent u/s. 11(a) and claimed below taxable limits. As seen from the P L A/c also the receipts are towards utensil maintenance and interest from bank but donations/voluntary contributions are all very small nature. The expenditure includes expenditure towards religious discourse (Rs. 55,000/- for the year ending 31-03- 2010 and ₹ 26,850/- for the year ending 31-03-2013) etc. Even though there are Anna Danam expenses and other expenditure as can be seen from the rules, these are meant for family members only in various baitaks which cannot be considered as public charitable in nature. Since the trust is created solely for the purpose of limited members of a particular community or belief and not for the purpose of general public, we are of the opinion that the trust cannot be considered as a trust for public charitable purposes and accor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2] the Hon'ble Supreme Court has held that there was no limitation in the Trust Deed in regard to which Muslims could avail the benefit of the Trust. The benefit was available to Muslims all over the world, none of whom except in Kerala were of backward classes. The Trust was not covered by Section 13(1)(b) and therefore held not entitled to exemption from tax. Similar facts apply in this case also as most of the expenditure is held for the benefit of a particular community or a religious group called SAMAJ families and so, we are of the opinion that the Trust is not created for charitable or religious purposes for general public. Accordingly, it is not entitled for registration. In the case of CIT Vs. Surji Devi Kunjilal Jaipuria Charitable Trust [186 ITR 728] (All), a community of a public was held to be for religious or charitable purposes and was entitled for exemption, whereas it was clearly held that the section of the community sought to be benefitted must be sufficiently defined and identifiable by some common quality of a public or impersonal nature, whereas in this case, the community is identified with a religious belief and royalty to a particular deity and that t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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