TMI Blog2015 (7) TMI 1328X X X X Extracts X X X X X X X X Extracts X X X X ..... For The Appellant : Shri Shikesh Jha For The Respondent : Shri Rishi Raj Sinha ORDER Per Sanjay Arora, A. M.: This is an Appeal by the Assessee agitating the Order u/s.12AA(b)(ii) of the Income Tax Act, 1961 ( the Act hereinafter) dated 23.05.2012 by the Commissioner of Income Tax-I, Patna ( CIT for short), rejecting the assessee s appeal for registration as a charitable institution u/s.12AA of the Act. 2. The controversy involved in the instant case is the maintainability or otherwise in law of the denial of registration as envisaged u/s.12A r/w s.12AA of the Act to the assessee-society vide the impugned order. 3. The brief facts of the case are that the assessee, a society registered under the Societies Registration Act, 1860, applied for registration u/s.12A(1)(aa) on 25.11.2011. The ld. CIT, i.e., the competent authority under the Act, in view of clauses 3(i), 3(ii) and 3(vii) of the assessee society s Aims and Objects , as well as the fact that its membership, governed by clause 4 of its Charter, is restricted to Priests incardinated ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in general and of Christians in particular and to provide for their support, maintenance and development for carrying out the purposes of the society. ii. To provide for the proper Christian education and vocational training of the children and youth of the Christian Community and to the extent possible also of other scholars who resort to its institutions, and for that purpose to establish, administer and maintain schools, colleges, and other educational and vocational and professionaltraining institutions. iii. To organize and support education and training of children and adults, both formal and non-formal, and thereby to promote a healthy human, cultural, social, political and economic environment in society. iv. To render medical assistance to the needy through public health centers, health care centers, hospitals and dispensaries. v. To establish homes and welfare centers for the aged, sick and destitute and conduct and promote social welfare programmes for the needy irrespective of their caste creed, race or social status. vi. To educate, maintain and support at the discretio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith national and international societies/ agencies for furthering tile attainment of the charitable objects of the Society. xvii. To do all things that may be incidental, conducive, expedient or necessary for the better attainment of the purposes of the society. [ emphasis, ours] It is well settled that for the purpose of ascertaining or determining the nature or the character of a trust/institution, it is the predominant object or purpose governing its formation or establishment that is to be seen (refer: Addl. CIT vs. Surat Art Silk Cloth Manufacturers Association [1980] 121 ITR 1 (SC)). We are unable to, on both a cursory and even a careful reading of the same, see as to how the assessee could be said to be a religious institution or society, or even partly so. In fact, each of the defining elements of a charitable purpose , i.e., for which it is established, as stated in its preamble, find mention in the definition of the term charitable purpose , inclusively defined u/s.2(15) of the Act, i.e., as obtaining at the relevant time. The Hon ble Courts have explained religious purpose to be one relating to religion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... edly areas of overlap between charitable and religious purposes, would definitely qualify to be regarded as a work of a charitable nature. To the extent the two coincide, the assesseesociety would only be considered as being of a charitable nature, i.e., including within its field areas which could also be regarded as religious. As afore-stated, it is in any case the principal or the predominant object or purpose that the institution is formed to serve, which would define its character and which we find as charitable in all its different facets. We, accordingly, find little scope for the application of the decision in the case of Barkete Saifiyah Society (supra) in the facts and circumstances of the case. The said decision in fact cannot be said to represent the correct law, as clarified in CIT vs. Dawoodi Bohra Jamat [2014] 364 ITR 31 (SC). It was held by the Apex Court that s. 13(1)(b) is equally applicable to a composite trust, and what is intended is to exclude from exemption of s. 11 is a trust which is established for the benefit of any particular religious community or caste (pg. 51, p.45). 4.2 Though subsumed in its argument, so that it does not lie in i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exercise it, or may choose not to, is another matter (refer: Delhi Stock Exchange Association Ltd. vs. CIT [1997] 225 ITR 235 (SC)). It is fully open for the assessee society to either not admit non-christians or admit them in a minority in-as-much as it is expressed to work for the benefit of the Christians in particular. The expression, in particular in this context came for the consideration by the Apex Court in CIT vs. Kamla Town Trust [1996] 217 ITR 699 (SC). In the facts of that case the object of the trust included construction of houses for workmen in general and, in particular, for the workmen, staff and other employees of the settlor company. The Hon ble Court observed that though 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. What, we may again clarify, we are concerned with is the intent as expressed in the Charter, i.e., in terms of the primary purpose and the predominant object for which the institution is established, including the manner of ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
