TMI Blog2015 (3) TMI 1377X X X X Extracts X X X X X X X X Extracts X X X X ..... tivities to be carried on for the purpose of Jain religion and also for the purpose of public at large. In view thereof, it could not be held that the same are meant for the benefit of only Jain religious community. We reverse the findings of the Commissioner in this regard. Hon ble Supreme Court in CIT Vs. Dawoodi Bohra Jamat [ 2014 (3) TMI 652 - SUPREME COURT] while holding the trust eligible to claim exemption under section 11 of the Act. In the totality of the above said facts and circumstances, we hold that the assessee is a charitable religious trust and the provisions of section 13(1)(b) of the Act would not be applicable. In view thereof, we direct the Commissioner to grant registration to the assessee under section 12A of the Act as charitable religious trust. The grounds of appeal raised by the assessee are thus, allowed. - ITA No.1353/PN/2014, ITA No.1890/PN/2014 - - - Dated:- 31-3-2015 - SHRI G.S. PANNU, ACCOUNTANT MEMBER AND Ms. SUSHMA CHOWLA, JUDICIAL MEMBER For the Appellant : Shri S.N. Doshi For the Respondent : Shri Adarsh Kumar Modi ORDER PER SUSHMA CHOWLA, JM: Both the appeals filed by the different assessees are against separate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gues and also setting up a machinery to sort out all social disputes. The Commissioner noted that the Trust Deed contains objects which were religious and for the benefit of particular religious community. The objects are enlisted under para 3.1 at page 2 of the order of Commissioner. The Commissioner was of the view that the prime thrust of the Trust was to provide for the benefit of Jain religious community, which was also evident from the page 2 of the Trust Deed, under which one of the motives of the Trust was that new generation of Jain Shwetambar Murtipujak Samaj should get religious encouragement and learn good manners for campaign and spread of religious works. The Commissioner was of the view that the objects of the assessee s trust were not charitable in the strict sense of the term and, instead, were predominantly religious and were meant for specific religious community i.e. the community of Jains. Further, the Commissioner took note of the reliance placed upon by the assessee on various decisions and the Commissioner did not find favour with any of the said decisions. Before the Commissioner, the assessee furnished evidence of having organized blood donation campaigns, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Rana Caste Association Vs. CIT (1971) 82 ITR 704 (SC) 4) CIT Vs. Ahmedabad Rana Caste Association (1983) 140 ITR 1 (SC) 8. The learned Departmental Representative for the Revenue on the other hand pointed out that in view of the violation of provisions of section 13(1)(b) of the Act, the assessee was not entitled to the claim of registration under section 12A of the Act. 9. We have heard the rival contentions and perused the record. The assessee trust was registered under the Bombay Public Trusts Act, 1950 vide Notification dated 17.11.2005. The assessee had applied for registration under section 12A of the Act, vide application filed in Form No.10A. The aims and objects of the assessee trust as per the Trust Deed were as under:- 1. To build Shri Jain Shwetamber Jain Temple, prayer hall (Dharmshala), renovate and maintain them, administer and in pursuance of that to do anything needed to be carried on. 2. To set the religious library, maintain it, propagate Indian culture and inculcate and study all the cultures of all the religion. To take up research on religious, social educational in order to uplift the public as a whole. 3. To arrange necessary matters en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ciples to carry on prayers and worship and also to take up all activities as are customary or traditional as per the philosophy of Jain Shwetamber Murtipujak. The objects also provide that the assessee would arrange the residence and discourses of Sadhus, Sadhvis of Jain Shwetamber Murtipujak and also to take up relevant activities to provide necessary services to them. Further, all the communities who believe in the tradition and philosophy of Jain Shwetamber Murtipujak were to be encouraged for inter-se cooperation and to take up certain activities and also benefits. As per clause 7, the object was to create, encourage, propagate, inter-se cooperation, co-living and feeling of co-living in the community of entire public at large. The issue which has been raised by the Commissioner in this case whether where prime thrust of the trust was to provide benefits to a particular religious community, can the assessee be entitled to the claim of registration to its trust of carrying on charitable activities. The objections of the learned Authorized Representative for the assessee against the order of Commissioner were that the objects of the trust were not for the promotion of any religio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etermined. It was further held that section 11 of the Act allows such trust with composite objects to claim exemption from tax as a religious and charitable trust, subject to provisions of section 13 of the Act. Though the objects of the trust were based on religious tenets but where the activities of the trust for both charitable and religious were not exclusively meant for a particular religious community, then it would not fall under the provisions of section 13(1)(b) of the Act and it was further held that where the assessee was charitable and religious trust, which did not benefit any specific religious community and hence, it could not be held that the provisions of section 13(1)(b) of the Act would be attracted to the assessee trust and therefore, it would be eligible to claim exemption under section 11 of the Act. The relevant observations of the Hon ble Supreme Court are as under:- (i) that determination of the nature of the trust as wholly religious or wholly charitable or both charitable and religious under the Act is not a question of fact. It is a question which requires examination of the legal effects of the proven facts and documents, that is, the legal implicat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ivest the trust of its altruist character. Therefore, the objects of the trust exhibited the dual tenor of religious and charitable purposes and activities. Section 11 of the Act allowed such trust with composite objects to claim exemption from tax as a religious and charitable trust subject to the provisions of section 13. The Activities of the trust under such objects would, therefore, be entitled to exemption accordingly. In re : trustees of the tribune [1939] 7 ITR 415 (PC) and In re : SOUTH PLACE ETHICAL SOCIETY; BARRALET V. ATTORNEY GENERAL [1980] 3 All ER 918; [1980] 1 WLR 1565; 54 Tax Cas 446 applied. (iii) That the objects of the assessee-trust were based on religious tenets under the Quran according to the religious faith of Islam. The activities of the trust though both charitable and religious were not exclusively meant for a particular religious community. The objects did 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. The assessee-trust was a charitable and religious trust which did not benefit any specific religious community and, therefore, it could not b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... applies only to charitable trust and charitable institution and if the trust was charitable as well as religious in nature, the assessee would be entitled to exemption under section 11 of the Act. 16. Similar proposition has also been laid down by the Hon ble Supreme Court in CIT Vs. Dawoodi Bohra Jamat (supra) while holding the trust eligible to claim exemption under section 11 of the Act. In the totality of the above said facts and circumstances, we hold that the assessee is a charitable religious trust and the provisions of section 13(1)(b) of the Act would not be applicable. In view thereof, we direct the Commissioner to grant registration to the assessee under section 12A of the Act as charitable religious trust. The grounds of appeal raised by the assessee are thus, allowed. 17. Now, coming to ITA No.1890/PN/2014, where similar issue has been raised by the assessee by raising the following grounds of appeal:- Ground No 1: On the facts and in the circumstances of the case the Id. Commissioner of Income Tax has erred in refusing the registration sought u/s 12AA(1) to the appellant on the grounds a) that the expenses incurred under the head Chaturmas expense ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other activities for the benefit of public at large and for achieving the said object efficiently as agreed by the public. d) To set up committees, sub-committees and appoint the office bearers and to frame necessary rules and regulations in order to carry out the above activities efficiently. e) To extend co-operation and provide financial aid to all other trusts committed for carrying out the same objects. To raise funds, donations, deposits from the public and utilize the same for the above funds 20. The Commissioner, during the course of proceedings noted that the activities provided by the assessee trust during the last three financial years along with expenses were as under:- Activities Activities carried out during the Financial year 2010-11 2011-12 2012-13 Chaturmas expenses (Cultural expenses) 456358 51000 1605647 Pathshala Expenses i.e. Educational 72355 18669 34594 Dharamshala Expenses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed by the learned Authorized Representative for the assessee was that none of the reasons mentioned by the Commissioner justifying the rejecting of registration were relevant, as the activities carried on and the objects of the trust were not found to be nongenuine. The learned Authorized Representative for the assessee furnished written submissions, in which under para 2(b), it has been mentioned that though most of the objects were charitable, but some of the charitable objects appear religious in nature. The learned Authorized Representative for the assessee thus, submitted that in other words, it can be said that there is a admixture of charitable and religious objects. In that case, the registration is not to be denied. Reliance was placed on various decisions including the ratios laid down by Hon ble Gujarat High Court in CIT Vs. Chandra Charitable Trust (2007) 294 ITR 86 (Guj) and the Hon ble Supreme Court in CIT Vs. Dawoodi Bohra Jamat, (2014) 364 ITR 31 (SC). 24. The learned Departmental Representative for the Revenue on the other hand, placed reliance on the order of Commissioner. 25. We have heard the rival contentions and perused the record. The objects of the a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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