TMI Blog2022 (5) TMI 334X X X X Extracts X X X X X X X X Extracts X X X X ..... community, caste or section, will be entitled to claim exemption on its income in the same way as a public charitable trust. A perusal of the original will of late His Holiness Sri.Channa Basava Swamy, reveals that he had only public benefit in mind to be the beneficiaries and the benefit was through performing puja and all kinds of religious activities. No private person belonging to any caste or creed, is the beneficiary. Assessee is admittedly carrying out the activities of providing free food and Hostel Facilities to Students and also to General Public. The facilities provided are for people without distinction relating to caste, creed or community. The Author of the trust has clearly specified in his Will that he has received monies and properties from people of different caste and creed which clearly proves that the Trust is not dedicated to only one religion or caste. People from different walks of life are free to enter the Holy place, meditate, pray and worship. The monies collected in the form of voluntary contributions are utilised for providing food and hostel facilities, Conducting Training for creating employment, helping the needy people by giving them Sewing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to non-convening of Board of Committee meeting due to preoccupation of the members of the Committee, to decide on further course of legal action. The delay in our view was occasioned due to reasonable cause and there has been no negligence of want of due diligence and hence the nominal delay in filing the appeal is condoned. 3. One Shri. Channabasavaswamy, a resident of Gangavathi town in the erstwhile Raichur District of Nizam Area, now Koppal District of Karnataka created a Mutt in Gangavathi Town called Sri Mallikarjuna Mutt. He installed an idol of Sri ChnnaMallikarjunaSwamy to perform pooja, out of food grains, cattle, cash and land donated by devotees of all caste creed for their well being and went on performing puja and all kinds of religious activities and held movable and immovable properties. On 16th October, 1945, he executed his last will and testament, when he was of the age of 95 years, in which he expressed his desire that as per the customs and traditions of the Mutt, Shiva Sharana works are to be done by performing pooja, vapour and Naivedya. Trustees were appointed and one immovable property, cattle and all movable properties were dedicated to the Mutt (Trust) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng any type of educations, hostels and organize medical camps, health service centre, lectures, yoga camps, musical academy, library and also social cultural and spiritual up-liftment of community.- j. The Trust formed shall be irrevocable. k. The Trust shall have power to accept donations either in cash, movable or immovable properties either with or without any special conditions attached thereto. l. The Trust shall have power in general to acquire all things and do all acts necessary to carry' out its objectives. m. The entire control, regulation, management, application arid administration of the Trust properties whether capital or income, rent, interestor profit of any kind shall be in the discretion of the Trust. n. To maintain and develop existing Go-Shala. o. This deed of supplementary addendum is to be construed and treated as part and parcel of original trust formed by his said Holiness arid registered deed No.8/ 2002-03. 4. The Assessee applied for grant of registration u/s.12AA of the Act and filed form No.10A of the Act for grant of registration as a Charitable Association for establishing and carrying on charitable activities fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the temple whether for worship or not are allowed to come and avail of facilities available to the public at large (providing free food). The Assessee was running Yoga Centre, eye clinic for the poor. In the case of M/S.Shiv Mandir Devasttan Panch Committee Sanstan (supra) The Assessee trust was set up with the object of worship of Lord Shiva, Hanumanji, Goddess Durga and maintaining of temple and to celebrate festivals like Shivratri, Hanuman Jayanti, Ganesh Uttasav, Makar Sankranti . It applied for a certificate under section 80G. S. 80G (5) provides that the trust should be established for a charitable purpose . Explanation 3 to s. 80G provides that charitable purpose does not include a purpose which is of a religious nature . S. 80G(5)(iii) also stipulates that the trust should not be expressed to be for the benefit of any particular religious community or caste. The CIT rejected the application on the ground that the Assessee was set up for religious purposes. On appeal by the Assessee to the Tribunal, the Tribunal held reversing the order of CIT that the objects of the Assessee are not for advancement, support or propagation of a particular religion. Worsh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner of Income Tax (Exemption) considered the Trust as Religious in nature based on the assumption that by performing Pooja namely `Rudrabhisheka' the trust generates major income without appreciating the fact that the Trust is carrying out the activities of providing free food and Hostel Facilities to Students and also to General Public. The facilities provided are for people without distinction relating to caste, creed or community. The CIT (Exemptions) did not appreciate the fact that the Author of the trust has clearly specified in his Will that he has received monies and properties from people of different caste and creed which clearly proves that the Trust is not dedicated to only one religion or caste. People from different walks of life are free to enter the Holy place, meditate, pray and worship. The monies collected in the form of voluntary contributions are utilised for providing food and hostel facilities, Conducting Training for creating employment, helping the needy people by giving them Sewing machines and other necessary equipment and support for sustaining livelihood for mainly people below poverty line. 8. It was submitted that the Audited Financial Statemen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cts and purposes of the trust that the activities of the trust though both charitable and religious are not exclusively meant for a particular religious community. The objects do 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. In that view of the matter, the Court held that the respondent-trust is a charitable and religious trust which does not benefit any specific religious community and therefore, it cannot be held that Section 13(1)(b) of the Act would be attracted to the trust and thereby, it would be eligible to claim exemption under Section 11 of the Act. 10. The learned counsel submitted that benefits of section 80G allowed for donations to charitable institutions is not available for a donation for religious purposes. Merely because the Assessee is religious institution, it should not come in the way of recognition under section 80G when it runs medical college. It cannot be characterised as religious object especially when it does not make a distinction between caste, creed, race, religion, etc. In this regard the learned counsel placed reliance on the decision of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ust could be 'public' or 'private'. Section 13(1)(a) bars exemption to any private religious trust, which does not enure for the benefit of the public. Section 80G(5)(iii) makes a distinction in cases of institutions or funds, which are for the benefit of any particular religious community or caste - say for Hindus, Muslims, Christians or for Brahmins, etc. Donors to such trusts are debarred from claiming benefit of deduction from income for donations made to such trusts. Conversely, it follows that for donations made to religious bodies, which do not fall in the category mentioned in section 80G(5)(iii), benefit of deduction under section 80G can be claimed. Thus, it could be said that a public religious trust, not meant for the benefit of a particular community, caste or section, will be entitled to claim exemption on its income in the same way as a public charitable trust. 14. A perusal of the original will of late His Holiness Sri.Channa Basava Swamy, reveals that he had only public benefit in mind to be the beneficiaries and the benefit was through performing puja and all kinds of religious activities. No private person belonging to any caste or creed, is th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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