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TMI Blog1991 (9) TMI 100X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee trust was to provide facilities for staying and other such facilities and as such basically it was not a religious trust. Even the settlors of the trust declared the trust as public charitable trust. The Assessing Officer also noted that in trust deed the mention of "Dharmada" was clear for the charity and not "Dharmik" denoting the religious. He also noted that to run a "Dharamshala" was very much covered as one of the ingredients of meaning the activities for charitable purposes as defined under s. 2(15) of the IT Act. To provide facilities for stay was given only to Murtipujak Jain Pilgrims, Jain Pilgrims, Jain saints and nuns. The said Dharmshala was not even meant for other jainis of Digamber of Sthanakwasi Jains. The Assessing Officer in the alternative also held that even if the trust was to be held as a religious trust, even then since the objects were clearly for the benefit of a small community only particularly to a sect of Jains, the trust could not be treated as a public religious trust, but necessarily was a private religious trust and, hence, no exemptions under s. 11 was to be given. In view of the aforesaid findings, the Assessing Officer disallowed the exem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... world but to a considerable number of people even of a particular community, but not to a selected few which could be ascertained. So according to him, the provision of s. 13(1)(b) of the IT Act in no way was in operation so far as the present assessee trust was concerned and, in that view of the matter, he set aside the order of the Assessing Officer. So now the Revenue, in turn, being aggrieved by the aforesaid order dt. 11th Nov., 1987 of the CIT(A) has come in appeal before the Tribunal and hence this appeal. 4. The learned Deptl. Representative of the Revenue in his argument submitted that the order of the learned CIT(A) was unjustified in fact as well as in law. During his argument he highlighted many aspects which the Assessing Officer has recorded while holding the assess trust as a public charitable trust. According to him, the learned CIT(A) did not consider the facts of the appeal in its right perspective and did not give the correct import of meaning to the various words and sentences which occurred in the trust deed which necessarily went to establish that the assessee trust was not a religious trust but was a public charitable trust. According to him, the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ies". According to the learned counsel of the assessee, the Assessing Officer simply noted the object No. 1 which said to provide with staying facilities to Jain Shwetember Murtipujak pilgrims" and built whole case to come to a wrong conclusion that the trust was a charitable trust. The learned counsel also referred para 20 of the trust deed wherein it was noted that the funds of the trust would be spent for religious purposes, for education and other purposes also. So according to the learned counsel, the object of the assessee trust was not that of mere charity but that of religious oriented. The learned counsel having drawn our attention at page 26 the trust deed said that in fact no word like "Dharmada" occurred and it was very uncertain as to from where the said word came for consideration before the Assessing Officer. He also said that, no doubt, the authorised representative of the assessee trust were also involved in discussing the word "Dharmada" during the course of assessment, but that might be due to some confusion or misunderstanding, otherwise the word "Dharmada" did not exist at para 26 of the trust deed. The learned counsel said that even if that Gujarathi word "Dha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of murtipujak Jain pilgrims including Sadhus and nuns. The learned counsel said that the trust was not for few particular persons of a family or for particular families only or for few ascertained people and in support of his aforesaid contention the learned counsel relied on the case of Sm. Charusila Dassi Ors., In re (1946) 14 ITR 362 (Cal) of the Hon'ble Calcutta High Court, wherein it was held that "the main characteristic of a public temple is that it is intended for the use of the public at large of a specified class, who are entitled to the right of worshipping in it". So according to him even for a specified class of people the conception of private trust or public trust could be differentiated. Taking to the present case, the learned counsel said that no doubt the trust was created to give religious facilities to Shwtamber Murtipujak Jain pilgirms, Sadhus and nuns only though that being a class was not specified to ascertain number of persons or people only but public at large of that specified class. The learned counsel also referred the decision of the Hon'ble Calcutta High Court in CIT vs. Administrator General of Bengal (1952) 21 ITR 241 (Cal) wherein it was held: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trust was also registered under the provisions of the Bombay Public Trusts Act, 1950 the accounts of the trust were always subject to the audit from year to year In past it filed its return of income and was always assessed as public religious trust upto asst. yr. 1983-84. So with the above submissions, the learned counsel earnestly urged that the order of the learned CIT(A) was in no way bad either in fact or in law and that was required to be sustained. 7. After careful consideration of the submissions of both sides and the materials available on appeal records, including the various papers compiled in the paper Book we are of the view that there is no merit in the case of the Revenue, rather on strength of factual aspect as well as various legal propositions as have been placed, the case of the assessee trust is on much better footing and so in consequence the order of the learned CIT(A) is in order. From the above submissions of both sides, it is manifest that as per the preambles and objects of the assessee trust it is not public charitable trust but is a public religious trust. The very objective of the creation of the trust is for religious activities and for religious pu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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