TMI Blog2015 (7) TMI 1327X X X X Extracts X X X X X X X X Extracts X X X X ..... f the trust included construction of houses for workmen in general and, in particular, for the workmen, staff and other employees of the settler company - the provision relating to workmen in general did constitute a charitable object, the words in particular for the workmen of the company , negatived its public character, so that the trust could not be considered to have been established wholly for charitable purposes. As consider the issue as to if the assessee could be denied registration in view of attraction of section 13(1)(b) of the Act, i.e., considering that the same is expressed to preclude sections 11 and 12 of the Act. We consider it as so in as much as the same forms an abiding or defining feature of the applicant, in which case, to what effect or purpose, one may ask, is the registration, i.e., if not toward grant of exemption u/ss. 11 and 12 of the Act. In the case of CIT vs. Dawoodi Bohra Jamat [ 2014 (3) TMI 652 - SUPREME COURT ] wherein the Hon ble Court approved the applicability of s. 13(1)(b) as a valid ground while considering the issue of registration u/s. 12AA of the Act in as much as registration is a pre requisite for availing the benefit of ss. 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncome of the previous year of the person in receipt thereof- (a) .................. (b) in the case of a trust for charitable purposes or a charitable institution created or established after the commencement of this Act, any income thereof if the trust or institution is created or established for the benefit of any particular religious community or caste. [emphasis supplied] 4. We have heard the parties, and perused the material on record. 4.1 We may, to begin with, clarify that the issue with regard to the minority status being by itself a debilitating factor, i.e., for grant of registration under the Act as a charitable institution, stands decided as being not so, i.e., in favour of the minority institution, by the decision by the Tribunal in the case of International School of Human Resources and Social Welfare Society (in ITA Nos. 72/Pat/2011 99/Pat/2012 dated 20.07.2015). A majority institution, i.e., where expressed to be for the benefit of the majority community, reckoned either in terms of the religion or caste, would be equally violative of section 13(1)(b) and, thus, the said status is itself of no consequence. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Jesus nor to the Canon Law of the Catholic Church nor to the laws under which this Association is organized. Rules and Regulations: Preliminary: .an words, terms, or expressions having a religious ecclesiastical bearing shall have the meaning attributed to them in the Canon Law of the Catholic Church and in the Constitution of the Society of Jesus;. Further, para 3 of the Rules and Regulations of the assessee association relating to Members reads as: Only members of the Religious Order of the Society of Jesus are eligible as members of the Association . We, in view of the clear restriction of the right of membership of the assessee society, who would constitute its Governing Body, as well as those relating to its affairs, i.e., the manner in which it is administered, which is expressed to work primarily for Christians, a religious community, have little hesitancy in holding that section 13(1)(b) is clearly applicable in the present case. In fact, a resolution of the general body was passed on 11.08.1986, which reads as under: Resolved that : The Memorandum of Association of St. Michael s Educational Associa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee could be denied registration in view of attraction of section 13(1)(b) of the Act, i.e., considering that the same is expressed to preclude sections 11 and 12 of the Act. We consider it as so in as much as the same forms an abiding or defining feature of the applicant, in which case, to what effect or purpose, one may ask, is the registration, i.e., if not toward grant of exemption u/ss. 11 and 12 of the Act. As observed by the tribunal in International School of Human Resources and Social Welfare Society (supra): What, we are unable to comprehend, effect or purpose the registration would have where, notwithstanding the same, no benefit u/ss. 11 and 12 can be allowed in view of an abiding feature of the applicant s constitution or its inherent nature. This aspect of the matter also gets support from the decision in the case of CIT vs. Dawoodi Bohra Jamat [2014] 364 ITR 31 (SC), wherein the Hon ble Court approved the applicability of s. 13(1)(b) as a valid ground while considering the issue of registration u/s. 12AA of the Act in as much as registration is a pre requisite for availing the benefit of ss. 11 12 (pg. 41), approving of registration on a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s membership inures only to and the management vests only in a restricted category of Christians, i.e., belonging to a particular religious Order. It is to serve the said community, which is only a particular religious community, that the assessee society is formed and is being administered. The observations under reference by the Apex Court in Dawoodi Bohra Jamat (supra) arise in the context of it being holding the society under reference to be the composite trust. Section 13(1)(b), it further explains, would apply to such a trust (para 45, page 51 of the reports). In the facts of that case, it found that while the religious objects of the trust were for the benefit of the Bohra community, the charitable objects were nowhere expressed to be for the benefit of the said community alone. That is, the same would accrue or inure to all, without restriction as to religion or caste. It is in this context that the apex court states of the benefit of the objects as not reserved exclusively for Bohra community, but to extend to the public at large. Specific reference may be drawn to paras 39 and 40 (at pgs. 49 and 50 of the reports) for ready reference: 39. The provisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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