TMI Blog2020 (6) TMI 525X X X X Extracts X X X X X X X X Extracts X X X X ..... nd maintenance of museum, etc., can be said to arise from the activities of the assessee which can be said to be covered under section 2(15)? - HELD THAT:- International Conventions to which Indian is a signatory in the context of the activities found discussed in the respective orders along with the contextual background wherein the assessee functions, we hold that the assessee has been formed for the objects falling within the four corners of the main clause of section 2(15) of the Act. We have seen that the activities undertaken by the assessee were unlike those undertaken by M/s. Jammu Development Authority. This issue, we have addressed at length in the earlier part of this order. The activities undertaken by the present assessee like light and sound show, present security service charges for preserving and maintaining/upgradation and maintenance of Krishna Museum expenditure of celebration of Geeta Jayanti, etc., are all relatable activities commensurate with its aims and objects involving no activity in the nature of trade, commerce or business. Thus, for the detailed reasons set out hereinabove, we are of the view that in the absence of any fact, instance or example on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... activities were being run in the nature of trade, commerce or business hence not covered under section 2(15) of the Act. Reliance was placed on the assessment order. For ground Nos. 2 and 3 also, reliance was placed on the assessment order. 3. The learned authorised representative relied upon the impugned order. Initially time had been sought to file a paper book, however, the request was given up. 4. Since the Revenue is aggrieved by the order passed by the first appellate authority, the learned Commissioner of Income-tax-Departmental representative was required to address the specific facts brought on record by the Assessing Officer so as to justify upsetting the conclusion drawn by the Commissioner of Income-tax (Appeals). On a reading of the assessment order, it was noticed that no such fact has been referred to. The learned Commissioner of Income-tax-Departmental representative in the absence of any such reference on record on a query nevertheless relied on the assessment order. The respective orders of the authorities below were read by the parties. 4.1 For the sake of greater clarity, the activities set out in para 3.1 of the impugned order were required to be read ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d facilities to pilgrims and tourist, etc. Before moving further it is essential to highlight some important points. The entities engaged in development activities have been operational in all the major cities/ districts of Haryana as well as Punjab besides in other parts of the country. At some places they are called development boards like that of the assessee or HUDA, PUDA, or city development board, town and country planning boards or improvement trust. The nature of activities in all these cases is to develop the infrastructure of the city. The activities involves not only construction of lanes, roads, parks, streets but also to beautify the city through construction of parks, gardens, etc. The activities also involve construction of houses and allotment of plots, etc., in some cases till April 1, 2003 all these boards were treated as 'local authority'. The income of which was exempt under section 10(20) of the Income-tax Act. From April 1, 2003 through an amendment the entities eligible for exemption were recognised and the development board were excluded. From April 1, 2001 onwards the boards started taking exemption under section 12A of the Act. 4. The same was a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able activity. The reply has been furnished by the assessee. The assessee has submitted as : 'we cannot compare our case with that of Jammu Development Authority v. CIT as no activity in nature of trade, commerce or business is being practiced by the assessee'. 8. Considering the reply it is clear that the assessee has not much to say on the matter. The accounts are reflecting the activities being in the nature of trade, commerce or business. The grants in aid is received by the Government for payment of salaries to the employees. There are other grants for development work also but the same have been expanded towards other activities like sound and light shows, etc. The receipt as well as payment has no charitable intent. Rather it is administrative expense which area necessity to run the institute. 9. The other receipts include interest which is due to surplus being deposited in banks and has no direct relation with activities. The other major receipt land and lease of land. The leasing out of commercial land to entities is purely in the nature of trade or business and as such the activities are squarely covered by the proviso to section 2(15) of the Income-tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ects relied upon by the assessee referred to for consideration before the Commissioner of Income-tax (Appeals) and taken into consideration by the said authority have been extracted in para 3.1 of the order. Since the above conclusion challenged by the Revenue in the present proceedings rests on these facts and evidences brought out in the impugned order, accordingly, it is deemed appropriate for the sake of completeness to also reproduce the relevant extract from the impugned order : 3.1 Authorised representative submissions During the course of appellate proceedings, the appellant submit ted the following : 'The assessee-society is carrying out the charitable activities of general utility as enumerated in object clause of the deed of registration and a few such objects are : (i) Providing all kinds of facilitation to tourists/pilgrim coming to Kurukshetra throughout the year. (ii) Maintain and preserve historical places in and around 48 kilometres of Kurukshetra. (iii) To provide all kinds of support for celebration of Gita Jayanti at Brahm Sarovar every year. (iv) To maintain and operate Krishna Museum at Kurukshetra. (v)... and so on'. 9. On ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ria on these material facts, we are of the view that the reliance placed on the decision is misplaced. On the contrary, we notice that before the Commissioner of Income-tax (Appeals), the assessee has canvassed that The activities carried out by the assessee-society are of charitable nature as defined under section 2(15) of the Income-tax Act and eligible for exemption under section 11 of the Act subject to certain conditions laid down therein. The assessee-society has complied with all such conditions and the funds are applied as per those conditions . It has also been canvassed that the surplus funds of the assessee-society are kept as per the provisions laid down under section 11(5) of the Act . These submissions, we find have not been even attempted to be upset by refer ring to any fact or evidence ignored by the Commissioner of Income-tax (Appeals) or noticed by the Assessing Officer. At the cost of repetition, we find that no evidence, fact or evidence has been placed before us to upset these submissions. 10. We also notice that the generalistic sweeping observation alleging similarity of activities in the assessment order without referring to any specific fact or eviden ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record need to be addressed. The Assessing Officer, it is seen, has discussed the same in para 5 of his order. A perusal shows that the statement therein also serves as his conclusion as it makes reference to no fact or evidence. We find that there is no reasoning available to hold that on consideration of which fact he has concluded that it is a commercial activity. It is noticed that the Assessing Officer at the cost of repetition in reference to ground No. 2 raised in the present proceedings has observed in the assessment order that The expenditure of the amounts have been shown towards 'light and sound show security service charges', upgradation of Sri Krishna Museum, expenditure on celebration of Gita Jayanti, land compensation, etc . Apart from this bald statement, there is no further discussion in the order as to why it is a commercial activity. On the other hand, we find that when the facts available on record as considered by the tax authorities are seen for examining the correctness of the said conclusion, we notice that the said activity when carried out by the assessee whose stated aim is facilitating tourism/pilgrim, maintaining and preserving historical plac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Former Prime Minister of India Bharat Ratna Sh. Gulzari Lai Nanda. The copy of the memorandum of association containing object clause is attached herewith as per exhibit A. (2) Copy of certificate of registration under section 12A(a) of the Income-tax Act. The certificate of registration under section 12A(a) of the Income-tax Act, 1961 was issued by the hon'ble Commissioner of Income-tax on dated January 17, 1978 vide No. 227(15-K)/74-75/J and the copy of the same is attached herewith as per exhibit B. (3) Sources of income The assessee-board is mainly dependent on grant in aid from State and Central Government. During the year under consideration, the assessee has received ₹ 32,02,00,000 as grant in aid from the Government out of the total receipts of ₹ 34,38,22,104. The copy of audit report in form No. 10B along with copy of balance-sheet, income and expenditure account is attached as per exhibit C. (4) Application/accumulation of income by the assessee-board : The income has been applied for the purpose of fulfilment of objects as laid down in the objects clause of the memorandum and/or objects incidental to the main objects of the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourse of actual carrying out of such advancement of any other object of general public utility ; and (ii) the aggregate receipts from such activity or activities during the previous year, do not exceed twenty per cent. of the total receipts, of the trust or institution undertaking such activity or activities, of that previous year. 13. In the facts of the present case, at the cost of repetition it needs to be borne in mind that the assessee as per para 3 of the assessment order itself is a society whose main aim is to undertake overall development of Kurukshetra, etc. It has elaborated its aims as including renovation of historical places and facilities to pilgrims and tourists, etc. A further perusal of para 5 of the assessment order shows that there has been receipt in the corpus fund of Yog Ashram of ₹ 5,72,006. It is seen that the expenditure of the amounts have been shown towards light and sound show security service charges , upgradation of Sri Krishna Museum, expenditure on celebration of Gita Jayanti, etc. The activities of the trust, it is seen included maintaining and preserving the historical places in and around 48 kilometres of Kurukshetra and providing f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ute. Kurukshetra has its name in the hall of fame solely and only due to the expounding of the philosophy of a civilisation which was plumbing in the depths of ignorance due to the prevalent and rhetoric adherence to rituals based on incorrect context of the principles, ideas and philosophies. This religious reform separating religion from the philosophy of a life lived in excellence for the benefit of the society was one of the first of the many self-generated religious reforms of the civilisation. This is contained in the Bhagwad Gita. The fact that it is the cultural heritage of this nation it cannot be denied by the most doubting of the doubting Thomases. Kurukshetra attracts tourists and pilgrims not because it is a site of some scenic magnificent beauty. Its claim of attraction is solely the cultural, historical, philosophical heritage of a civilisation which was lost in oblivion for nearly 700 years. The keeping alive of the new direction and definition shown by the Great Yogi Sri Krishna who is considered a god by some of us where shunning the then corrupted religious practices, he gave a distinct new definition of yajna as the act of giving back to the universe like the wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e land. Reference may be made to the Directive Principles of State Policy enshrined in Part IV of the Constitution. The Directive Principles of State Policy though have not been provided to be enforceable in a court of law like fundamental rights which enjoy such a guarantee, however, their importance in providing a guidance for formation of State policies, etc., cannot be ignored. Article 49 of the Constitution of India included in the Chapter of Part IV of the Constitution in clear unambiguous words is titled protection of monument sand places and objects of national importance . It mandates that : It shall be the obligation of the State to protect every monument or place or object of or artistic or historic interest (declared by or under law made by Parliament) to be of national importance, from spoliation, disfigurement, destruction, removal, disposal or export, as the case may be . 16. A further reference to article 51A of the Constitution of India enshrined in Part IV-A titled as fundamental duties may also be made. The article in clear terms sets out that it shall be the duty of every citizen of India to value and preserve the rich heritage of the composite culture. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gh light and sound available even to the illiterate cannot be whimsically and arbitrarily discarded as a commercial venture. Similarly maintenance of a museum keeping alive the philosophy ideas and cultural folklore constituting the cultural heritage cannot be dismissed as a commercial activity simply for the saying. The fact that apart from various other cites within the 48 kilometres area of Kurukshetra, there is Pehowa also which though has been referred to earlier for the mentioning of the genealogical records is also as per folklore, cultural belief is considered to be on the banks of the erstwhile Saraswati, some would say mythical river embodying the godess Saraswati, godess of learning . The existence of this river marked by a temple on the purported site may also have doubt sayers but its existence is the cultural heritage of this nation which recognises Triveni and existence of different philosophies and thoughts cannot be denied. A person on the touchstone of scientific historical standards may or may not believe its existence, however, the existence of a cultural heritage around this event cannot be denied. The fact that its existence is insisted upon by a particular ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... public domain addressing the queries posed to him on the advice which he would possibly give to the Hindus as available in http://koenraadelstblogspot.com/2012/05/hindu-survival-what-is-tobedone.html has stated ; Some Hindus ask me, as a sympathising outsider, if I have any advice for them when they want to revive their fortunes. In principle, I have no advice ; it would be arrogant to pretend to know some- thing that the people concerned are not so sure about. But then again, Hindus are no different from others, they are subject to the same laws, so an approximative knowledge of their condition is enough to predict where they are moving and to say what they have to do to make the best of it. So, here goes and answered the same with stating that : The first thing Hindus have to do is to know themselves. The great problem of Hindus today is that they have become sleep-walkers forgetful of their civilisation. It gets worse with every passing year, as the ever-larger Hindu middle class is becoming Americanised both in consumer patterns and in values. Their knowledge of Western films and music is becoming bigger as their knowledge of the Hindu tradition is lessening. And the worst ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es. Reference may be made to the United Nation's conference on human development held in 1972 at Stockholm. Reference may also be made to recommendations made by the Inter-governmental Conference on cultural policies for development which issued an action plan on cultural policies for development (30th March to 2nd April, 1998) again at Stockholm wherein India was also a member. The following policy objectives recommended to member States : 1. To make cultural policy one of the key components of development strategy ; 2. To promote creativity and participation in cultural life ; 3. To reinforce policy and practice to safeguard and enhance tangible and intangible, movable and immovable cultural heritage and to promote cultural industries ; 4. To promote cultural and linguistic diversity in and for information society ; and 5. To make more human and financial resources available for cultural development. 17.3 Thus, keeping alive the cultural heritage an activity undertaken by the present assessee as per its aims and objects and accordingly educating and disseminating this information through the light and sound show or museum alone without any facts and ev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eligious tools of oppression in most of the other civilisations of the world and were near equivalent to sati and caste atrocities. The women in the so-called developed nations even then were married off young with virtually no say either in the event or choice of mate. Their status and existence was totally dependent on male support and in the absence of it, were maltreated, having no economic, social or inheritance rights, denied education much like the women in this civilisation when it was plumbing the depths of ignorance. Thus no doubt caste, sati, child marriage, etc., as practiced were abominal practices to be shunned, the other civilisations too were equally on the back foot on these aspects. This civilisation has peri odically had resurgence and reform initiated by the enlightened religious reformers, saints at different points. Reference may be made to the new definition given by Sri Krishna. Reference may also be made to the reforms and new definition given by Sri Gautam Budh, Sri Mahavir, Guru Nanak, Mira, Ravi Das, Kabir, Raja Ram Mohan Roy, Swami Dayanand Saraswati, Shankracharya, Sri Vivekanand, etc. The culture has been alive wherein several course corrective self-g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment as applicable to an individual, organisation or State. It is on this terra ferma of Kurukshetra that Shri Krishna gave the discourse of right and wrong actions, thoughts and deeds. The definition of Right action was explained with the concept of swa dharma i.e. that action which is right for that person at that point of time for which no scriptures need to be read, no ritual needs to be performed, no god or guru needs to be appeased. Right action with the right intellect enlightened by the pure human spirit bereft of shackling of the mind through the five senses with no thought or desire of individual benefit or reward or punishment is explained to be the highest principle of an enlightened human existence which is possible only with mindful living. It is a well acknowledged fact that the lessons addressing the spirit of the human desire to live a life of exalted magnificence expounded by Sri Krishna has a following of renowned philosophers, thinkers of different times who have acknowledged the lofty ideas and heavily borrowed therefrom or at times plagiarised the philosophy expounded and incorporated it in their sects/religions and followings. It is not a religious discours ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arried out by the assessee. Knowledge and information imparted to the world at large regardless of caste, class or religion does not become commercial solely because it is more entertaining or available also to the illiterate. Education need not necessarily be through books and lectures and completion of course and certificates. Lifestyle education which upgrades your life is equally far reaching and a valuable education having every day application. It is well acknowledged that when education is aimed to be imparted to the world at large, then the use of script alone may not always be sufficient. Audio visual media like movies, theatre, skits, light and sound are also very powerful medium available for disseminating knowledge and education. Their reach and hold can never be over emphasised. The resort to educate and impart knowledge on the life, message and realities of the times of Sri Krishna leading to the life lessons of the Srimad Bhagwad Gita to the world at large, the literate as well as the illiterate, the unlettered, the ignorant young and the aware old, the domestic tourists and the international tourists in the absence of any evidence cannot be presumed to be a commerci ..... X X X X Extracts X X X X X X X X Extracts X X X X
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