TMI Blog2009 (6) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... e case here. - 86 of 2008 - - - Dated:- 22-6-2009 - A. M. SAPRE and PRAKASH SHRIVASTAVA JJ. R. L. Jain with Miss Veena Mandlik for the appellant. J. P. Shah with Himanshu Joshi for the respondents. JUDGMENT The judgment of the court was delivered by PRAKASH SHRIVASTAVA J.— This order will govern the disposal of Income-tax Appeals Nos. 87, 88, 89, 90, 91, 92, 93, 94, 95, 96, 97, 98, 99, 100, 101, 102, 103, 104, 105, 106, 107, 108, 109, 110, 111, 112, 113, 114, 115, 116, 117, 118, 119, 120, 121, 122, 123, 124, 127, 128, 129, 130, 140, 141, 152, 153, 154, 155, 156, 157, 158, 159, 160, 161, 162, 163, 164, 165, 166, 167, 168, 169, 175 of 2008 and 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 and 36 of 2009. 2. In this order, we have noted the facts from I. T. A. No. 86 of 2008 for convenience. It is not disputed by counsel appearing for the respective parties that all the appeals are on the same facts involving identical issue. 3. This appeal has been filed by the Department under section 260A of the Income Act, 1961 ("the Act" hereafter), against the common order dated March 28, 2008, passed by the Income-tax Appellate Tribunal (ITAT) in I. T. A. No. 615/Ind/07- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is a public religious trust. The Commissioner, vide order dated September 14, 2007, rejected the application made by the respondent seeking registration on the ground that the object of the trust are charitable in nature for a particular community and, hence, the provisions of section 13(1)(b) of the Act are attracted. It was, therefore, held that the trust cannot be registered under section 12A/12AA of the Act. Aggrieved with this order of the Commissioner, the respondent-trust preferred an appeal before the Income-tax Appellate Tribunal, Indore Bench, Indore. The applications for registration of Dawoodi Bohra Jamat of other localities were also rejected on the similar ground and they also assailed the order of the Commissioner Income-tax before the Income-tax Appellate Tribunal in appeal. All these appeals were filed on the same facts and, therefore, they were disposed of by the Tribunal by a common order dated March 28, 2008, or by separate order following the main order dated March 28, 2008. The Income-tax Appellate Tribunal allowed the appeals by holding that the respondent-trust are public religious trusts and the provisions of sections 13(1)(b) of the Act are not attract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t, 1951, provides the meaning of public trust means an express or constructive trust for a public religious or charitable purpose and includes a temple, a math, a mosque, a church, a wakf or any other religious or charitable endowment and a society formed for a religious or charitable purpose. The words 'religious purpose' or 'public worship' as found in enactments relating to public trust have not been defined under the Income-tax Act. Therefore, there is a wide scope for interpretation of these words on the basis of definitions given elsewhere or precedents interpreting them. Broadly speaking 'religious purpose' under the Income-tax Act will include objects relating to observance of rituals and ceremonies and propagation of the tenets of religion as also its advancement. Income derived from property held by public trust as well as voluntary contributions received by the public trust are the subject-matter of exemptions from the taxation under the Act. The objects of the assessee-trust reproduced above dearly refer to the religion and are supported by reference made to different pages of Holy Quran. The learned counsel for the assessee referred to the true copies of several pages ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... i Bohras the path shown by the prophet is one indicated and shown by their living guide Dai-ul-Mutlaq. The learned counsel for the assessee submitted that the objects given in the registration under M. P. Public Trusts Act were briefly the same as above elaborated in the application for registration which are in the interest of Bohra samaj with regard to observing and solemnizing the religious activities and education for Bohra samaj and as such there is no difference in them. We agree with the learned counsel for the assessee that the objects of the assessee-trust, as explained in the registration application under section 12A/12AA of the Act, are derived from the objects of the trust, as have been mentioned briefly in the certificate of registration as noted above. The contention of the learned Departmental representatives is, therefore, rejected. 17. The learned Departmental representative submitted that no mosque or roza is created by the assessee-trust, therefore, it cannot be treated as religious trust. The learned counsel for the assessee, however, submitted that there is no requirement under the law. The learned Departmental representative thus has failed to bring to our ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the wakf was established for a wholly religious purpose. At the hearing of the reference, the High Court has interfered with the finding of the Tribunal on this point. The High Court considered that the maintenance of madrassas and the library must be taken to be one of the original purposes of the wakf and the finding of the Tribunal that the wakf was wholly for a religious purpose must be overruled. It is manifest that the question as to what was the object of the wakf is essentially a question of fact and the High Court had, therefore, no justification for interfering with the finding of the Tribunal on this point. It was pointed out by this court in India Cements Ltd. v. CIT [1966] 60 ITR 52 (SC) that in a reference under section 66 of the Act the High Court must accept the findings of fact made by the Appellate Tribunal, and it is not open to the High Court to reopen the findings of fact unless the party concerned has applied for a reference to challenge those findings first by an application under section 66(1) of the Act. If he has failed to file an application expressly raising the question about the validity of the findings of fact, he is not entitled to urge before th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t entitled to claim registration. As against this, the learned counsel appearing for the respondent submitted that the in the case of Shri Dhakad Samaj Dharamshala Bhawan Trust [2008] 302 ITR 321 (MP) is on different facts and it will have no application to the present case. 17. We have carefully perused the order of the Income-tax Appellate Tribunal dated March 28, 2008, passed in the present case. The Income-tax Appellate Tribunal has examined the issue of applicability of the provisions of section 13(1)(b) of the Act in the case of the respondent. While deciding this issue, the Income-tax Appellate Tribunal has relied upon the decisions of the Gujarat High Court in the matter of CIT v. Barkate Saifiyah Society [1995] 213 ITR 492 and in the matter of CIT v. Chandra Charitable Trust [2007] 294 ITR 86 (Guj). The Income-tax Appellate Tribunal has held that since the respondent is a religious trust, therefore, the provisions of section 13 (1)(b) of the Act will not be applicable because the same are applicable in the case of the trust established for charitable purposes. There is no error in such a conclusion of the Income-tax Appellate Tribunal. Section 13(1)(b) is a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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