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TMI Blog2015 (5) TMI 759X X X X Extracts X X X X X X X X Extracts X X X X ..... High Court in Chandra Charitable Trust case (2006 (7) TMI 96 - HIGH COURT , GUJARAT) had laid down that even where the objects of the trust were not only to propagate the Jainism or help and assist maintenance of temples, Sadhus, Sadhvis, Shraviks and Shravaks, and other goals as set out in the trust deed, the trust was a charitable as well as religious trust and section 13(1)(b) of the Act would not be applicable. Similar proposition has been laid down in CIT v. Barkate Saifiyah Society [1993 (11) TMI 13 - GUJARAT High Court] wherein it was held that the exclusion from exemption under section 13(1)(b) of the Act 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. Thus 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 - Decided in favour of assesseee. - IT APPEAL NO. 1352 (PUNE) OF 2014 - - - Dated:- 31-3-2015 - SHRI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessee that Christian was a kind of pattern of living by obeying the philosophy of Bible, which does not speak about any caste. It was further contended that the word community should not be mis-understood as religion. It was further submitted that clauses 4, 5 and 6 in addition to Christian, also benefitted the deserving men and women and also public at large. Regarding the activities carried on, it was also explained that these were benefitting all the members of the public at large. The Commissioner was of the view that the objects at serial Nos.2, 4, 5, 6 and 7 were not charitable in the strict sense of the term and, instead, were religious and if these objects were considered carefully, then there was no doubt that the same were meant for the benefit of specific religious community i.e. the community of Christianity. Further, reference was made to the Preamble given in the report and activities and also from the activities actually conducted during the past few years, established that the prime thrust of the trust was to provide for the benefit of a particular religious community. The Commissioner has reproduced preamble and the activities carried on by the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ombay Public Trusts Act, 1950 vide Certificate of Registration issued by the Asst. Charity Commissioner, Pune Region, Pune on 17.04.2007. The assessee also registered under the Societies Registration Act, 1860. The objects of the trust are as under:- 2. Generally to do all such other deeds and things as may be deemed incidental or conductive to the attainment and fulfillment of all or any of the objects mentioned herein as a minority institution established and administered under Christian management to conduct its activities. 3. To provide Ambulance facility to people in large. 4. To establish and to administer Educational Institutions imparting education in medical, Technical, Dental, Computer, to needy deserving and also Physically handicapped, Mentally retarded, deaf and dumb, students and to establish primary, high school, higher secondary, degree course and post-degree education for needy and deserving Christian students in particular and others in general. 5. To establish Hostels, Libraries, Computer Centers for Christian boys and girls in particular and other deserving needy boys and girls in general. 6. To establish centers to propagate, co-ordinate and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the trust were not only to propagate Jainism or help and assist maintenance of temples, Sadhus, Sadhvis, Shraviks and Shravaks, and other goals are also set out in the trust deed, the trust was a charitable as well as religious trust and section 13(1)(b) of the Act would not be applicable. The Hon'ble High Court has held as under:- 5. The question, that what should be the principle adopted and whether Jainism is a lifestyle or a religion, would lose much of its importance in view of the judgment of this Court in the matter of CIT v. Barkate Saifiyah Society (supra). If Jainism is accepted to be a religion and from the covenants of the trust deed it can be spelt out that not only to propagate Jainism or help and assist maintenance of the temple, Sadhus, Sadhvis, Shraviks and Shravaks, yet other goals are set in the trust deed, then the trust would become a charitable trust, so also a religious trust or it can be addressed as a charitable religious trust, and, if that be so, s. 13(1)(b) would not be applicable. Once the basic question is answered against the interests of the Revenue, then the other questions can conveniently be decided against the interests of the Revenue. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the High Court had erred in refusing to interfere with the observations of the Tribunal in respect of the character of the trust on the grounds that they were pure findings of fact. (ii) That the objects of the assessee-trust were not indicative of a wholly religious purpose but were collectively indicative of both charitable and religious purposes. Although objects (c) and (f) which provided for activities completely religious in nature and restricted to the specific community of the assessee-trust were objects with religious purpose only, the fact that the other objects traced their source to the Holy Quran and resolved to abide by the path of godliness shown by Allah would not be sufficient to conclude that the entire purpose and activities of the trust were purely religious in colour. The objects reflected the intent of the trust as observance of the tenets of Islam, but did not restrict the activities of the trust to religious obligations only and for the benefit of the members of the community. The provision of food to the public on religious days of the community, the establishment of Madars as and organisations for dissemination of religious education and rendering ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deration before us is whether the trust whose objects were religious as well as charitable would be entitled for registration under section 12A of the Act. Looking at the objects of the trust, we find that one of the objects of the assessee trust was to provide Ambulance facility to people at large. The object Nos. 2, 6 and 7 of the Trust, were admittedly relating to Christian community. However, other object Nos. 3, 4, 5 was to provide Ambulance facility to people at large, to establish and administer educational institutions for needy and deserving Christian students in particular and others in general, to establish hostels, libraries, etc. for Christian boys and girls in particular and other deserving needy boys and girls in general. The objects of the assessee trust thus, reflect the activities 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. 13. Now, coming to the second issue of grant of registration under section 12A of the Act, where the trust was both ch ..... X X X X Extracts X X X X X X X X Extracts X X X X
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