TMI Blog2022 (11) TMI 1253X X X X Extracts X X X X X X X X Extracts X X X X ..... hikshan Trust [ 1975 (8) TMI 1 - SUPREME COURT] and which would entitle an institution to claim exemption under the beneficial provisions of the Income Tax Act. It also flows that merely because a society or trust draws its inspiration for certain charitable activities from religious tenents, as long as charitable activities of the society are not confined to the benefit of any particular community, it is entitled to exemption u/s 11 of the Income Tax Act. In the present case of the assessee, while the donors to the society may have been giving to it in the belief that they were propagating and promoting Christianity, the society itself has confined its activities to the aims and objectives laid down in the Memorandum of Association ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the Societies Act as well as under Section 12AA of the Act. It carries out object of education. It has schools in Uttarakhand and Western UP. The ld. Assessing Officer noted the return filed by the assessee on 26.09.2014 declaring NIL income for the assessment year 2014-15 claiming exemption under Section 11 of the Income-tax Act, 1961 (for short 'the Act'). The case of the assessee was selected for scrutiny as limited scrutiny because the receipt of the assessee from foreign donation more than Rs.1 crore. The ld. AO examined the object and the activities of the trust. He examined the annual reports and held that the activities of the trust were carried on for benefit of a particular community and, therefore, it is not carryi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nverted Indians into Christianity, particularly, where from the aims and objects of the assessee society, it is apparently clear that it is imparting education and providing help to the orphans without any discrimination on the basis of religion, caste and creed. The assessee society has to be judged according to the rules and regulations under which it was set up in India and whether its activities have been in compliance with the rules and regulations laid out in the Memorandum of Association on the basis of which it was granted registration and exemption under the provisions of the Income Tax Act. The aims and the objectives of the society do not show that the society was created to provide the benefit for any particular community. Furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the views as stated on the website Good News for India, the assessee society has neither been set up for the purposes of serving a particular religious community, nor have its activities been directed towards furtherance of a particular religion or a particular religious community. It is pertinent to mention here that the assessee society has quite effectively rebutted the allegations that various expenses were made for the sole benefit of the Christian community. 19. Now the only question that remains to be replied is whether the application of income towards funding the activities of the NTC qualifies as education within the meaning of section 2 (15) of the Income Tax Act or whether it amounts to application of income for the benefit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fined only to a particular religious community, the same would attract the provisions of section 13 (1)(b). In this case, the Hon'ble Supreme Court held that the objects of the trust were not indicative of a wholly religious purpose but were collectively indicative of both charitable and religious purposes. It held that while some of the objects provided for activities were completely religious in nature and restricted to specific community, other objects which trace the source to the Holy Kuran did not restrict activities of the trust to religious obligations or benefit of members of anyone community. The Hon'ble Supreme Court further held that since the objects of the trust exhibited dual tenor of religious and charitable purposes ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1) (b) of the Income Tax Act would be attracted to it. Therefore, in my considered opinion, the assessee society is eligible to claim exemption u/s 11 of the Income Tax Act. 21. On identical facts and the issue, the Ld. CIT (Appeals), Dehradun has allowed the appeals for the AY 2009-10, 2010-11, 2011-12 2012-13 in favour of the assessee society. In further appeal, the Hon ble ITAT Delhi has dismissed the appeal of Income Tax department in appeal no.235/Del/2015 and appeal no.236/Del/2015 upholding the CIT (A) s appeal order allowing exemption to the appellant for the AY 2009-10 and 2011-12 on the same facts. 5. Against this order, the Revenue is in appeal before us. We have heard both the parties and perused the records. 6. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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