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TMI Blog2015 (3) TMI 1377X X X X Extracts X X X X X X X X Extracts X X X X ..... r members of the Jain community and thus it is established for the benefit of specific religious community attracting the provisions of section 13(1)(b) and therefore no purpose will be served by granting registration u/s.12A. 2. The above ground of appeal may kindly be allowed to be amended, altered, modified etc., in the interest of natural justice. 4. The issue raised in the present appeal is against the denial of grant of registration under section 12A of the Act. 5. The brief facts of the case are that, the assessee society was set up vide Trust Deed dated 18.03.2005. The assessee society was registered under the Bombay Public Trusts Act, 1950 vide Notification dated 17.11.2005 issued by the Dy. Charity Commissioner, Pune Region, Pune. The assessee, vide application in Form No.10A applied for registration under section 12A of the Act. The CIT-I, Pune requisitioned the assessee to furnish certain details, information and evidences. The assessee was also asked to explain as to why registration should be granted where the objects are predominantly religious. In reply, the assessee claimed that Jainism was a philosophy and the members of the public regardless of caste or relig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ut in the income and expenditure accounts, only the activity of letting Bhavan to other organizations was reflected. The use of Bhavan / Dharmashala to earn income, as per Commissioner, was not authorized as per the objects and activities therefore, were not as per the objects of the society. The Commissioner considered the provisions of section 12A of the Act and observed that before grant of registration, he had to be satisfied about the objects of the Trust as well as about the genuineness of the trust activities. The registration under section 12A of the Act conferred recognition of entitlement of benefits under sections 11 and 12 of the Act. The Commissioner was of the view that when the benefits envisaged in sections 11 and 12 of the Act could not be availed by the trust or the institution, in view of application of provisions of section 13(1)(b) of the Act, no purpose would be served by granting registration under section 12A of the Act to such trust or institution. In view thereof, the request for grant of registration under section 12A of the Act was rejected. 6. The assessee is in appeal against the said rejection of grant of registration under section 12A of the Act. 7 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctivities for their protection and benefit similarly to sort out all the disputes relating to religion or social issues. 7. To create, encourage, propagate inter-se co-operation, co-living and feeing of co-living in the community of entire public at large. 10. The Commissioner while considering the application for grant of registration under section 12A of the Act, was of the view that the prime thrust of trust was to provide for the benefit of a particular religious community and further, the activities carried on by the assessee i.e. hiring of Dharmshala was not a charitable object. The assessee claimed that it was organizing blood donation campaigns, medical check-up campaigns, etc. in its Dharmshala. However, the Commissioner noted that the said camps were organized by other organizations at Dharmshala of the assessee, against which rent was paid, which was accounted for by the assessee in its income and expenditure account. 11. The issue arising before us is whether the assessee is entitled to the claim of registration under section 12A of the Act being a charitable and religious trust and also where the assessee has violated the provisions of section 13(1)(b) of the Act, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicable. 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 vs. 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. The reference stands disposed of accordingly. No costs." 13. The Hon'ble Supreme Court in CIT Vs. Dawoodi Bohra Jamat, (2014) 364 ITR 31 (SC) had observed that the objects of trust as declared in the Trust Deed would govern its right of exemption under sections 11 and 12 of the Act. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctively 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 Madarsas and organisations for dissemination of religious education and rendering assistance to the needy and poor for religious activities would reflect the essence of charity. The activity of providing for food on certain specific occasions and other religious and auspicious events of the Dawoodi Bohra community did not restrict the benefit to the members of the community. Nei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd further object was to set up a religious library, maintain it and propagate Indian culture and inculcate and study all the cultures of all the religion. Further, to take up research on religious, social and educational in order to uplift the public at large. The objects Nos.3 to 5 of the Trust Deed were admittedly for the propagation of philosophy of Shri Jain Shwetamber Murtipujak. However, object No.7 was to create, encourage and propagate inter-se cooperation, co-living and feeling of co-living in the community of entire public at large. 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. 15. Now, coming to the second issue of grant of registration under section 12A of the Act, where the trust was both charitable and religious. The Hon'ble Gujarat High Court in CIT Vs. Chandra Charitable Trust (supra) had laid down that even where the objects of the trust were not only to propagate the Jainism or help ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the case the Id. Commissioner of Income Tax has erred in refusing the registration sought u/s 12AA(1) to the appellant on the ground that the trust has no defined dominant charitable purpose and further erroneously holding that offering respectful services to Sadhu, Sadhvi delivering lectures on social cultural, educational fields are not to be considered as charitable activities within the meaning of sec 2(15). The above grounds of appeal may kindly be allowed to be amended, altered, modified etc., in the interest of natural justice. 18. The assessee has also filed an additional ground of appeal, which being purely legal in nature, is admitted for adjudication. The additional ground of appeal reads as under:- "On the facts and in the circumstances of the case the learned CIT has erred in ignoring the factual explanation and submission made to the effect that appellant in fact is duly registered u/s 12A(a) and all the evidences filed in support there for. The CIT has further erred in not granting the registration w.e.f. 1974-75." 19. In the facts of the case, the assessee trust was registered on 04.07.1969 under the Bombay Public Trusts Act, 1950. However, the assessee made ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not be considered as charitable activities and does not fall within the meaning of section 2(15) of the Act. Another objection raised by the Commissioner was that as to why the trust should not be treated to be an entity working especially for a particular community or caste and registration under section 12A of the Act should not be rejected under the provisions of section 13(1)(b) of the Act. In view thereof, the Commissioner rejected the request of the assessee for grant of registration under section 12A of the Act. 22. The assessee is in appeal against the said order of Commissioner. 23. The first issue raised by the learned Authorized Representative for the assessee was that the assessee trust was registered way back in 1974-75. However, relevant letter of enrollment or certificate was not traceable, hence, fresh application was made. The learned Authorized Representative for the assessee drew our attention to the various documents including copies of income tax returns, in which exemption under section 11 of the Act was claimed and also other documents, which established the existence of trust since past many years. The second issue raised by the learned Authorized Represen ..... X X X X Extracts X X X X X X X X Extracts X X X X
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