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TMI Blog2020 (6) TMI 2X X X X Extracts X X X X X X X X Extracts X X X X ..... ee is allowed. - ITA No.898/Ind/2018 - - - Dated:- 22-5-2020 - Kul Bharat, Judicial Member And Manish Borad, Accountant Member For the Assessee : Shri Arun Jain, CA For the Revenue : Shri S.S. Mantri, CIT ORDER PER MANISH BORAD, AM The above captioned appeal filed at the instance of the assessee is directed against the orders of Ld. Commissioner of Income Tax (Exemption) (in short Ld.CIT(A) ], Bhopal dated 28.9.2018. 2. Assessee has raised following grounds of appeals; 1. That in the facts and under the circumstances of the case the learned Commissioner of Income Tax (Exemption) [CIT(E)] erred in facts and also in law in rejecting application filed u/s 12A of the Income Tax Act for the registration. 2. That in the facts and under the circumstances of the case the learned Commissioner of Income Tax (Exemption) [CIT(E)] erred in facts and also in law in forming the opinion that objects of the trust are for the benefit of a particular community and not for public at large whereas Jain temple is open for all the communities. 3. That in the facts and under the circumstances of the case the learned Commissioner of Income Tax (Exemption) [CI ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tself, the entire activities in the name of Temple becomes doubtful. 4. On the basis of the above observation of Ld. CIT(Exemption) rejected the application for registration u/s 12AA of the Act. Aggrieved assessee is in appeal before the Tribunal. 5. Ld. Counsel for the assessee referred to the paper book running from page 1 to 70 which includes copy of trust deed, registration order dated 2.10.17 of Court of Sub Division Officer and Registrar of Public Trust, District Vidisha, certificate of ownership of temple issued by Muncipal Council, Ganj Basoda and property tax receipt issued by Municipal Council, Ganj Basoda. Ld. Counsel for the assessee also referred to the objectives of trust deed and submitted that trust is running both for religious and charitable purposes. The objectives includes providing medical relief to human beings. Objects are also included providing safety to birds and animals. He also submitted that it is consistently held by Hon ble courts that if the objects of the trust are for charitable as well as religious purposes then the registration u/s 12AA of the Act should not be denied on the premise that the trust is working for a particular religious co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d 17.11.2005. The assessee had applied for registration under section 12A of the Act, vide application filed in Form No.10A. The aims and objects of the assessee trust as per the Trust Deed were as under:- 1. To build Shri Jain Shwetamber Jain Temple, prayer hall (Dharmshala), renovate and maintain them, administer and in pursuance of that to do anything needed to be carried on. 2. To set the religious library, maintain it, propagate Indian culture and inculcate and study all the cultures of all the religion. To take up research on religious, social educational in order to uplift the public as a whole. 3. To arrange necessary matters enabling the disciples to carry on prayers and worship. To take up all the activities as are customary or traditional as per the philosophy of Jain Shwetamber Murtipujak. 4. To arrange all the ceremonies as are envisaged in the philosophy of Shri Jain Shwetamber Murtipujak and to take up all the administrative requirements relating thereto. 5. To arrange residence and discourses of Sadhus Sadhvis of Jain Shewatamber Murtipujak and to take up all the relevant activities to provide necessary services to them. 6. All the fa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and to take up certain activities and also benefits. As per clause 7, the object was to create, encourage, propagate, inter-se cooperation, co-living and feeling of co-living in the community of entire public at large. The issue which has been raised by the Commissioner in this case whether where prime thrust of the trust was to provide benefits to a particular religious community, can the assessee be entitled to the claim of registration to its trust of carrying on charitable activities. The objections of the learned Authorized Representative for the assessee against the order of Commissioner were that the objects of the trust were not for the promotion of any religion and hence, it could not be denied the benefit of registration under section 12A of the Act. 12. We find that the Hon'ble Gujarat High Court in CIT Vs. Chandra Charitable Trust (2007) 294 ITR 86 (Guj) which has been referred to by Pune Bench of the Tribunal in JITO-Pune Chapter Vs. CIT (supra), had considered the issue of grant of registration under section 12A of the Act, it was observed by the Hon'ble Gujarat High Court that where the objects of the trust were not only to propagate Jainism or help and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further held that where the assessee was charitable and religious trust, which did not benefit any specific religious community and hence, it could not be held that the provisions of section 13(1)(b) of the Act would be attracted to the assessee trust and therefore, it would be eligible to claim exemption under section 11 of the Act. The relevant observations of the Hon'ble Supreme Court are as under:- (i) that determination of the nature of the trust as wholly religious or wholly charitable or both charitable and religious under the Act is not a question of fact. It is a question which requires examination of the legal effects of the proven facts and documents, that is, the legal implication of the objects of the assessee-trust as contained in the trust deed. It is only the objects of a trust as declared in the trust deed which would govern its right of exemption under section 11 or 12. It is the analysis of these objects in the backdrop of fiscal jurisprudence which would illuminate the purpose behind creation or establishment of the trust for either religious or charitable or both religious and charitable purpose. Therefore, the High Court had erred in refusing to int ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TR 415 (PC) and In re : SOUTH PLACE ETHICAL SOCIETY; BARRALET V. ATTORNEY GENERAL [1980] 3 All ER 918; [1980] 1 WLR 1565; 54 Tax Cas 446 applied. (iii) That the objects of the assessee-trust were based on religious tenets under the Quran according to the religious faith of Islam. The activities of the trust though both charitable and religious were not exclusively meant for a particular religious community. The objects did not channel the benefits to any community if not the Dawoodi Bohra community and thus, would not fall under the provisions of section 13(1)(b) of the Act. The assessee-trust was a charitable and religious trust which did not benefit any specific religious community and, therefore, it could not be held that section 13(1)(b) of the Act would be attracted to the assessee-trust and thereby, it would be eligible to claim exemption under section 11 of the Act. 14. In view of the above said proposition laid down by the Hon'ble Supreme Court, the objects of the trust are to be looked into and those objects can be either charitable or religious in nature or both charitable or religious in nature. The question which arises for consideration before us is whet ..... X X X X Extracts X X X X X X X X Extracts X X X X
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