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TMI Blog2015 (7) TMI 1328X X X X Extracts X X X X X X X X Extracts X X X X ..... (JM) AND SHRI SANJAY ARORA (AM) For The Appellant : Shri Shikesh Jha For The Respondent : Shri Rishi Raj Sinha ORDER Per Sanjay Arora, A. M.: This is an Appeal by the Assessee agitating the Order u/s.12AA(b)(ii) of the Income Tax Act, 1961 ('the Act' hereinafter) dated 23.05.2012 by the Commissioner of Income Tax-I, Patna ('CIT' for short), rejecting the assessee's appeal for registration as a charitable institution u/s.12AA of the Act. 2. The controversy involved in the instant case is the maintainability or otherwise in law of the denial of registration as envisaged u/s.12A r/w s.12AA of the Act to the assessee-society vide the impugned order. 3. The brief facts of the case are that the assessee, a society registered under the Societies Registration Act, 1860, applied for registration u/s.12A(1)(aa) on 25.11.2011. The ld. CIT, i.e., the competent authority under the Act, in view of clauses 3(i), 3(ii) and 3(vii) of the assessee society's 'Aims' and 'Objects', as well as the fact that its membership, governed by clause 4 of its Charter, is restricted to Priests incardinated in the Diocese of Buxar and member of the religious order/congregations, held it to be establi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e extent possible also of other scholars who resort to its institutions, and for that purpose to establish, administer and maintain schools, colleges, and other educational and vocational and professionaltraining institutions. iii. To organize and support education and training of children and adults, both formal and non-formal, and thereby to promote a healthy human, cultural, social, political and economic environment in society. iv. To render medical assistance to the needy through public health centers, health care centers, hospitals and dispensaries. v. To establish homes and welfare centers for the aged, sick and destitute and conduct and promote social welfare programmes for the needy irrespective of their caste creed, race or social status. vi. To educate, maintain and support at the discretion of the Governing Body those engaged for the works of the Society in its own institutions or other institutions and to provide such personnel with residential accommodation, and equip them suitably with necessary facilities for their work and study and to maintain them during the period of training either free of cost or for a consideration. vii. To provide for the trai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rers Association [1980] 121 ITR 1 (SC)). We are unable to, on both a cursory and even a careful reading of the same, see as to how the assessee could be said to be a religious institution or society, or even partly so. In fact, each of the defining elements of a 'charitable purpose', i.e., for which it is established, as stated in its preamble, find mention in the definition of the term 'charitable purpose', inclusively defined u/s.2(15) of the Act, i.e., as obtaining at the relevant time. The Hon'ble Courts have explained 'religious purpose' to be one relating to religion, which would encompass objects relating to observance of rituals or ceremonies, propagation of tenets of the religion and other allied activities of the religious community. There is nothing in the object clause to suggest propagation of Christianity or the Christian religion, much less expressed in a manner so as to bestow upon it a religious character, but only to serve the said community in particular. Even if we were to consider the three object clauses which stand singled out and impugned by the ld. CIT, the same nowhere speak of or advert to any object of a religious purpose but only of a charitable purpose ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n in the case of Barkete Saifiyah Society (supra) in the facts and circumstances of the case. The said decision in fact cannot be said to represent the correct law, as clarified in CIT vs. Dawoodi Bohra Jamat [2014] 364 ITR 31 (SC). It was held by the Apex Court that s. 13(1)(b) is equally applicable to a composite trust, and what is intended is to exclude from exemption of s. 11 is a trust which is established for the benefit of any particular religious community or caste (pg. 51, p.45). 4.2 Though subsumed in its argument, so that it does not lie in its mouth to contend to the contrary, we may yet consider, next, the validity of the charge on the assessee of it being formed for the benefit of a particular religious community, attracting section 13(1)(b) of the Act. We find the said intent to permeate the assessee's objects, nay, Charter. The assessee-society; its name; condition of its membership; its objects, all read in conjunction and in harmony, clearly bring out the intent to serve the Christian community in preference to others, who are though not excluded, i.e., to the Christian community as being the intended beneficiary. It is nobody's case that s. 13(1)(b) implies, or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... settlor company. The Hon'ble Court observed that though the provision relating to workmen in general did constitute a charitable object, the words 'in particular for the workmen of the company' negatived its public character, so that the trust could not be considered to have been established wholly for charitable purposes. What, we may again clarify, we are concerned with is the intent as expressed in the Charter, i.e., in terms of the primary purpose and the predominant object for which the institution is established, including the manner of its administration, so as to determine if it reveals a clear mandate to undertake charitable works with a view to benefit a particular religious community or not, a finding of fact, i.e., principally, the answer to which in the present case is an emphatic yes. 4.3 We may finally consider the issue as to if the assessee could be denied registration in view of attraction of section 13(1)(b) of the Act, i.e., considering that the same is expressed to preclude sections 11 and 12 of the Act. We consider it as so in-as-much as the same forms an abiding or defining feature of the applicant, in which case to what effect or purpose, one may ask, is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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