9911796707
TMI Blog1998 (7) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... ends that a trust set up to promote Gujarati language is to be regarded as one set up to promote the interest of a particular religion or caste attracting the bar of section 13(1)(b) of the Income-tax Act and, therefore, the trust is not entitled to the benefit of the exemption under sections 11 and 12 of the Act. The respondent-assessee is Gujarathi Mandal, Salem. Its object has been set out in its memorandum of association of Shri Gujarati Mandal, Salem, as follows : "Shri Gujarati Mandal, Salem, is a charitable association founded with the following objects : (1) To impart knowledge and education primarily in Gujarati language and to cultivate interest and promote studies. (2) To establish and maintain educational institutions an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gujarathi students only two are South-Indians, others probably know Gujarathi or Hindi. Considering all these facts, I have to agree with the Income-tax Officer that the Mandal was established for the benefit of a particular religious community or caste. The fact that there may be a few outsiders is only a breach of the bye-laws. The provisions of section 13(1)(b) are, therefore, rightly applied." Section 13(1)(b) of the Income-tax Act reads as under : "in the case of a trust for charitable purposes or a charitable institution created or established after the commencement of this Act, any income thereof if the trust or institution is created or established for the benefit of any particular religious community or caste." Section 13(1)( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ons being elementary, the Revenue has chosen to seek a reference. Ours is a multi-lingual, multi-religious multi-cultural nation wherein diverse religions and languages co-exist. There is no identification of any language with any particular religion or vice-versa. The commonality of language is due mainly to the residence in a particular lingustic area and is not related to the religious beliefs of the speaker. The religions practised by the people of the country are not confined to any particular linguistic area. People speaking different languages may and do practise the same religion. The most outstanding example being Hindu religion practised by people speaking a large number of different languages residing in places as far apart as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... particular religion. All that is required is that the member should know Gujarathi. As noticed earlier, that language can be and in fact is spoken by people belonging to different religions---Hindus, Muslims, Parsees, Tribals. All of them are equally eligible to become members of Mandal, and the object of the Mandal regarding the promotion of religious, social and moral standards of the members is capable of including. the promotion of the interest of the diverse religion followed by its members. This clause, therefore, does not in any way restrict or require the Mandal to promote the interest of any particular religion or caste. Our answer to the common question referred to us, is against the Revenue and in favour of the assessee. The a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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