Diocese of Pune (CNI), Pune V. Commissioner of Income-tax - 1,

ITA 1352/PUN/2014

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 89076 (ITAT-PUNE)
• Duration Of Justice: 9 month(s) 4 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-03-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 26-06-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ADARSH KUMAR MODI
• Assessee Lawyers: S N DOSHI
• Keywords: Charitable institution; Principle of natural justice
• Section: 12A; 12AA; 12; 11

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH B, PUNE BEFORE SHRI G.S. PANNU, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.1352/PN/2014 [ORDER UNDER SECTION 12AA OF THE ACT] DIOCESE OF PUNE (CNI) 1A, STAVELY ROAD, RED BUNGALOW, CAMP, PUNE 411001 . APPELLANT PAN: AABTD3514D VS. THE COMMISSIONER OF INCOME TAX-I, PUNE . RESPONDENT APPELLANT BY : SHRI S.N. DOSHI RESPONDENT BY : SHRI ADARSH KUMAR MODI DATE OF HEARING : 19-01-2015 DATE OF PRONOUNCEMENT : 31-03-2015 ORDER PER SUSHMA CHOWLA, JM: THIS APPEAL FILED BY THE ASSESSEE IS AGAINST THE OR DER OF CIT-I, PUNE DATED 22.05.2014 PASSED UNDER SECTION 12AA(1)(B)(II) OF T HE INCOME-TAX ACT, 1961 READ WITH RULE 17A OF THE INCOME TAX RULES, 1962. 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL:- 1. ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE THE LD. COMMISSIONER OF INCOME TAX HAS ERRED IN HOLDING THAT THE ACTIVITIES CARRIED ON BY THE TRUST WERE MEANT FOR MEMBERS OF THE CHRISTIAN COMMUNITY A ND THUS IT IS ESTABLISHED FOR THE BENEFIT OF SPECIFIC RELIGIOUS C OMMUNITY ATTRACTING THE PROVISIONS OF SECTION 13(1)(B) AND THEREFORE NO PUR POSE 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. 3. THE ASSESSEE VIDE PRESENT APPEAL IS AGGRIEVED BY NON-GRANT OF REGISTRATION UNDER SECTION 12A OF THE ACT. ITA NO.1352/PN/2014 DIOCESE OF PUNE (CNI) 2 4. THE BRIEF FACTS OF THE CASE ARE THAT, THE ASSESS EE WAS CREATED VIDE A DEED OF TRUST DATED 01.08.2014. IT WAS REGISTERED UNDER TH E BOMBAY PUBLIC TRUSTS ACT, 1950 VIDE CERTIFICATE OF REGISTRATION ISSUED BY THE ASST . CHARITY COMMISSIONER, PUNE REGION, PUNE ON 17.04.2007. THE COMMISSIONER REQUI SITIONED THE ASSESSEE TO FURNISH CERTAIN DOCUMENTS AND DETAILS I.E. THE EVID ENCES OF CHARITABLE ACTIVITIES CARRIED OUT BY THE TRUST IN THE LAST THREE YEARS, PROOF OF FILING OF RETURN OF INCOME. IT WAS ALSO BROUGHT TO THE NOTICE OF THE ASSESSEE THAT THE OBJE CTS AT SERIAL NOS.2, 4, 5, 6 AND 7 APPEAR TO BE FOR THE BENEFIT OF A PARTICULAR RELIGI OUS COMMUNITY IN CONTRAVENTION OF SECTION 13(1)(B) OF THE ACT AND IT WAS ALSO REQUISI TIONED AS TO HOW THESE COULD BE CONSIDERED AS CHARITABLE. THE COMMISSIONER FURTHER FROM THE DETAILS OF THE ACTIVITIES CARRIED OUT FOR FINANCIAL YEARS 2010-11, 2011-12 AN D 2012-13 NOTED THAT THE ACTIVITIES WERE ALSO FOR THE BENEFIT OF A PARTICULAR RELIGIOUS COMMUNITY IN CONTRAVENTION OF SECTION 13(1)(B) OF THE ACT. THE ASSESSEE VIDE WRI TTEN SUBMISSIONS DATED 15.04.2014 REGARDING OBJECTS AT SERIAL NOS.2, 4, 5, 6 AND 7 SU BMITTED THAT REFERENCE TO THE CHRISTIAN COMMUNITY SHOULD NOT BE INTERPRETED TO ME AN THAT THESE ARE BENEFITING ANY RELIGIOUS COMMUNITY OR CASTE. IT WAS FURTHER EXPLA INED BY THE ASSESSEE THAT CHRISTIAN WAS A KIND OF PATTERN OF LIVING BY OBEYING THE PHIL OSOPHY OF BIBLE, WHICH DOES NOT SPEAK ABOUT ANY CASTE. IT WAS FURTHER CONTENDED TH AT THE WORD COMMUNITY SHOULD NOT BE MIS-UNDERSTOOD AS RELIGION. IT WAS FURTHER SUBM ITTED THAT CLAUSES 4, 5 AND 6 IN ADDITION TO CHRISTIAN, ALSO BENEFITTED THE DESERVIN G MEN AND WOMEN AND ALSO PUBLIC AT LARGE. REGARDING THE ACTIVITIES CARRIED ON, IT WAS ALSO EXPLAINED THAT THESE WERE BENEFITTING ALL THE MEMBERS OF THE PUBLIC AT LARGE. THE COMMISSIONER WAS OF THE VIEW THAT THE OBJECTS AT SERIAL NOS.2, 4, 5, 6 AND 7 WER E NOT CHARITABLE IN THE STRICT SENSE OF THE TERM AND, INSTEAD, WERE RELIGIOUS AND IF THESE OBJECTS WERE CONSIDERED CAREFULLY, THEN THERE WAS NO DOUBT THAT THE SAME WERE MEANT FO R THE BENEFIT OF SPECIFIC RELIGIOUS COMMUNITY I.E. THE COMMUNITY OF CHRISTIANITY. FURT HER, REFERENCE WAS MADE TO THE PREAMBLE GIVEN IN THE REPORT AND ACTIVITIES AND ALS O FROM THE ACTIVITIES ACTUALLY CONDUCTED DURING THE PAST FEW YEARS, ESTABLISHED TH AT THE PRIME THRUST OF THE TRUST WAS TO PROVIDE FOR THE BENEFIT OF A PARTICULAR RELIGIOU S COMMUNITY. THE COMMISSIONER HAS REPRODUCED PREAMBLE AND THE ACTIVITIES CARRIED ON B Y THE ASSESSEE IN FINANCIAL YEARS 2009-10 TO 2012-13, WHICH ARE REPRODUCED AT PAGES 2 TO 4 OF THE ORDER PASSED UNDER ITA NO.1352/PN/2014 DIOCESE OF PUNE (CNI) 3 SECTION 12A OF THE ACT. THE ASSESSEE PLACED RELIAN CE ON VARIOUS CASE LAWS, WHICH HAS BEEN DISTINGUISHED BY THE COMMISSIONER, EVEN TH E RATIO LAID DOWN BY THE HONBLE SUPREME COURT IN CIT VS. DAWOODI BOHRA JAMAT, (2014 ) 364 ITR 31 (SC). THE COMMISSIONER WAS OF THE VIEW THAT UNDER SECTION 13( 1)(B) OF THE ACT, WHERE THE CHARITABLE TRUST OR INSTITUTION IS ESTABLISHED FOR THE BENEFIT OF ANY SPECIFIC RELIGIOUS COMMUNITY OR CASTE, THE BENEFITS OF SECTIONS 11 AND 12 OF THE ACT WOULD NOT BE AVAILABLE TO SUCH A TRUST OR INSTITUTION, IN THE LI GHT THEREOF, THE GRANT OF REGISTRATION UNDER SECTION 12A OF THE ACT WOULD SERVE NO PURPOSE . CONSEQUENTLY, THE APPLICATION MOVED BY THE ASSESSEE FOR GRANT OF REGISTRATION UND ER SECTION 12A OF THE ACT WAS REJECTED. 5. THE ASSESSEE IS IN APPEAL AGAINST THE SAID ORDER OF COMMISSIONER. 6. THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE AS SESSEE AFTER TAKING US THROUGH FACTS OF THE CASE POINTED OUT THAT THE TRUS T WAS REGISTERED UNDER BOMBAY PUBLIC TRUSTS ACT, 1950 AND WAS BOTH A CHARITABLE A ND RELIGIOUS TRUST. THE CONTENTION OF THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE AS SESSEE WAS THAT THE ASSESSEE WAS A PUBLIC CHARITABLE TRUST AS IT WAS REGISTERED UNDER BOMBAY PUBLIC TRUSTS ACT, 1950. IT WAS FURTHER CONTENTED BY THE LEARNED AUTH ORIZED REPRESENTATIVE FOR THE ASSESSEE THAT THE TRUST WAS NOT ESTABLISHED FOR CHR ISTIAN COMMUNITY ONLY, BUT FOR THE PUBLIC AT LARGE. FURTHER, RELIANCE WAS PLACED ON T HE RATIO LAID DOWN BY THE HONBLE SUPREME COURT IN CIT VS. DAWOODI BOHRA JAMAT (SUPRA ). 7. THE LEARNED DEPARTMENTAL REPRESENTATIVE FOR THE REVENUE PLACING RELIANCE ON THE ORDER OF COMMISSIONER POINTED OUT THAT THE ASSE SSEE WAS A CHARITY OF NORTH INDIAN AND AS PER THE OBJECT NOS.1 TO 6, THE AIM WA S TO PROPAGATE ONE OF THE COMMUNITIES AND HENCE, WAS NOT ELIGIBLE FOR CLAIM O F REGISTRATION UNDER SECTION 12A OF THE ACT. IT WAS FURTHER CONTENTED BY THE LEARNED D EPARTMENTAL REPRESENTATIVE FOR THE REVENUE THAT ONE OF THE OBJECTS BEING FOR THE BENEF IT OF A PARTICULAR COMMUNITY, WAS DELETED CONSEQUENT TO THE ORDER OF ASST. CHARITY CO MMISSIONER, PUNE REGION, PUNE DATED 10.04.2007. ITA NO.1352/PN/2014 DIOCESE OF PUNE (CNI) 4 8. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ASSESSEE TRUST WAS CREATED AS PER THE DEED OF TRUST DATED 01 .08.2004. IT WAS REGISTERED UNDER THE BOMBAY PUBLIC TRUSTS ACT, 1950 VIDE CERTIFICATE OF REGISTRATION ISSUED BY THE ASST. CHARITY COMMISSIONER, PUNE REGION, PUNE ON 17 .04.2007. THE ASSESSEE ALSO REGISTERED UNDER THE SOCIETIES REGISTRATION ACT, 18 60. THE OBJECTS OF THE TRUST ARE AS UNDER:- 2. GENERALLY TO DO ALL SUCH OTHER DEEDS AND THINGS AS MAY BE DEEMED INCIDENTAL OR CONDUCTIVE TO THE ATTAINMENT AND FULF ILLMENT OF ALL OR ANY OF THE OBJECTS MENTIONED HEREIN AS A MINORITY INSTITUT ION ESTABLISHED AND ADMINISTERED UNDER CHRISTIAN MANAGEMENT TO CONDUCT ITS ACTIVITIES. 3. TO PROVIDE AMBULANCE FACILITY TO PEOPLE IN LARGE . 4. TO ESTABLISH AND TO ADMINISTER EDUCATIONAL INSTI TUTIONS IMPARTING EDUCATION IN MEDICAL, TECHNICAL, DENTAL, COMPUTER, TO NEEDY & DESERVING AND ALSO PHYSICALLY HANDICAPPED, MENTALLY RETARDED, DEAF AND DUMB, STUDENTS AND TO ESTABLISH PRIMARY, HIGH S CHOOL, HIGHER SECONDARY, DEGREE COURSE AND POST-DEGREE EDUCATION FOR NEEDY AND DESERVING CHRISTIAN STUDENTS IN PARTICULAR AND OTHE RS IN GENERAL. 5. TO ESTABLISH HOSTELS, LIBRARIES, COMPUTER CENTER S FOR CHRISTIAN BOYS AND GIRLS IN PARTICULAR AND OTHER DESERVING & NEEDY BOYS AND GIRLS IN GENERAL. 6. TO ESTABLISH CENTERS TO PROPAGATE, CO-OR DINATE AND TO SECURE THE RIGHTS GUARANTEED UNDER ACT AND 30(1) AND 16(4) OF THE CONSTITUTION OF INDIAN TO THE RELIGIOUS AND LINGUISTIC MINORITIES & THE SOCIALLY AND EDUCATIONALLY BACKWARD CLASSES OF INDIA. 7. TO ESTABLISH CHRISTIAN SCHOOLS AND COLLEGES. 8. TO PRINT AND PUBLISH MONTHLY, WEEKLY, DELITIES I N ANY LANGUAGES. 9. THE FIRST OBJECT OF THE SOCIETY WHICH WAS TO PRO CLAIM BY WORD AND DEED THE GOSPEL OF JESUS CHRIST, WHO IS THE LORD MASTER OF T HE CHURCH, FOR THE SALVATION AND GOOD OF ALL MANKIND THROUGH UNITY, WITNESS AND SERV ICE EDUCATIONAL, MEDICAL SOCIAL, AGRICULTURE AND OTHER SERVICES, AND ALSO THROUGH WO RSHIP AND OTHER ACTIVITIES OF THE CHURCH WHICH PROMOTE SPIRITUAL GROWTH, SELF RELIANC E, SOCIAL JUSTICE AND MORAL REGENERATION, IRRESPECTIVE OF CASTE, CREED OR COLOU R, HAS BEEN DELETED BY THE ORDER OF ASST. CHARITY COMMISSIONER, PUNE REGION, PUNE DATED 10.04.2007. A COPY OF THE SAID ORDER IS PLACED AT PAGES 32 TO 34 OF THE PAPER BOOK. UNDER THE SAID ORDER, IT HAS ALSO BEEN HELD THAT THE OBJECTS OF THE SOCIETY ARE OF GENERAL PUBLIC UTILITY AND ALL WITHIN SECTION 9 OF BPT ACT, 1950. FURTHER, SINCE THE SOC IETY IS REGISTERED UNDER THE SOCIETIES REGISTRATION ACT, 1860 AND THEREFORE, IS A PUBLIC TRUST WITHIN THE MEANING OF PUBLIC TRUST UNDER SECTION 2(13) OF THE BOMBAY PUBL IC TRUSTS ACT, 1950. PERUSAL OF ITA NO.1352/PN/2014 DIOCESE OF PUNE (CNI) 5 THE OBJECTS OF THE TRUST REFLECT THAT THOUGH SOME O F THE OBJECTS ARE FOR THE BENEFIT OF CHRISTIAN COMMUNITY IN PARTICULAR, BUT FOR OTHERS I N GENERAL, HENCE, THE OBJECTS ARE STRICTLY NOT FOR THE CHRISTIAN COMMUNITY IN PARTICU LAR, BUT ARE BOTH FOR THE PURPOSES OF CHRISTIAN COMMUNITY AND OTHER PUBLIC AT LARGE. THE OBJECT NO.3 I.E. THE PROVISION OF AMBULANCE FACILITY TO PEOPLE AT LARGE CANNOT BE SAI D TO ONLY FOR THE BENEFIT OF CHRISTIAN COMMUNITY. IN THE ABOVE SAID FACTS AND CIRCUMSTANC ES, WHERE THE TRUST HAS BEEN CREATED BOTH FOR THE CHARITABLE AND RELIGIOUS PURPO SES, THE ISSUE ARISE WHETHER IT IS ENTITLED FOR REGISTRATION UNDER SECTION 12A OF THE ACT. 10. WE FIND THAT THE HONBLE GUJARAT HIGH COURT IN CIT VS. CHANDRA CHARITABLE TRUST (2007) 294 ITR 86 (GUJ) WHICH HAS BEEN REFERR ED TO BY PUNE BENCH OF THE TRIBUNAL IN JITO-PUNE CHAPTER VS. CIT-I, PUNE, ITA NO.2167/PUNE/2013, DT. 17.11.2014, HAD CONSIDERED THE ISSUE OF GRANT OF RE GISTRATION UNDER SECTION 12A OF THE ACT, IT WAS OBSERVED BY THE HONBLE GUJARAT HIGH CO URT THAT WHERE THE OBJECTS OF THE TRUST WERE NOT ONLY TO PROPAGATE JAINISM OR HELP AN D ASSIST MAINTENANCE OF TEMPLES, SADHUS, SADHVIS, SHRAVIKS AND SHRAVAKS, AND OTHER G OALS ARE ALSO SET OUT IN THE TRUST DEED, THE TRUST WAS A CHARITABLE AS WELL AS RELIGIO US TRUST AND SECTION 13(1)(B) OF THE ACT WOULD NOT BE APPLICABLE. THE HONBLE 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 MU CH 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 AN D FROM THE COVENANTS OF THE TRUST DEED IT CAN BE SPELT OUT THAT NOT ONLY TO PRO PAGATE 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 C AN BE ADDRESSED AS A CHARITABLE RELIGIOUS TRUST, AND, IF THAT BE SO, S. 13(1)(B) WO ULD 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 DISP OSED OF ACCORDINGLY. NO COSTS. 11. THE HONBLE SUPREME COURT IN CIT VS. DAWOODI BO HRA JAMAT, (2014) 364 ITR 31 (SC) HAD OBSERVED THAT THE OBJECTS OF TRUST AS D ECLARED IN THE TRUST DEED WOULD GOVERN ITS RIGHT OF EXEMPTION UNDER SECTIONS 11 AND 12 OF THE ACT. THE HONBLE SUPREME COURT ALSO RECOGNIZED THE CREATION OR ESTAB LISHMENT OF TRUST FOR EITHER RELIGIOUS OR CHARITABLE OR BOTH RELIGIOUS AND CHARI TABLE PURPOSES. BY LOOKING AT THE OBJECTS OF THE TRUST, IT HAD TO BE DETERMINED WHETH ER THE OBJECTS WERE WHOLLY RELIGIOUS OR WHOLLY CHARITABLE OR BOTH RELIGIOUS AND CHARITAB LE AND IT WAS HELD THAT ON ITA NO.1352/PN/2014 DIOCESE OF PUNE (CNI) 6 CONSIDERATION OF THE OBJECTS OF THE TRUST, THE RELI GIOUS AND CHARITABLE PURPOSES AND ACTIVITIES OF THE TRUST COULD BE DETERMINED. IT WA S FURTHER HELD THAT SECTION 11 OF THE ACT ALLOWS SUCH TRUST WITH COMPOSITE OBJECTS TO CLA IM EXEMPTION FROM TAX AS A RELIGIOUS AND CHARITABLE TRUST, SUBJECT TO PROVISIO NS OF SECTION 13 OF THE ACT. THOUGH THE OBJECTS OF THE TRUST WERE BASED ON RELIGIOUS TE NETS BUT WHERE THE ACTIVITIES OF THE TRUST FOR BOTH CHARITABLE AND RELIGIOUS WERE NOT EX CLUSIVELY MEANT FOR A PARTICULAR RELIGIOUS COMMUNITY, THEN IT WOULD NOT FALL UNDER T HE PROVISIONS OF SECTION 13(1)(B) OF THE ACT AND IT WAS FURTHER HELD THAT WHERE THE ASSE SSEE 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 HONB LE 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 T HE ACT IS NOT A QUESTION OF FACT. IT IS A QUESTION WHICH REQUIRES EXAMINATION O F THE LEGAL EFFECTS OF THE PROVEN FACTS AND DOCUMENTS, THAT IS, THE LEGAL IMPL ICATION OF THE OBJECTS OF THE ASSESSEE-TRUST AS CONTAINED IN THE TRUST DEED. IT I S ONLY THE OBJECTS OF A TRUST AS DECLARED IN THE TRUST DEED WHICH WOULD GOVERN IT S RIGHT OF EXEMPTION UNDER SECTION 11 OR 12. IT IS THE ANALYSIS OF THESE OBJEC TS IN THE BACKDROP OF FISCAL JURISPRUDENCE WHICH WOULD ILLUMINATE THE PURPOSE BE HIND CREATION OR ESTABLISHMENT OF THE TRUST FOR EITHER RELIGIOUS OR CHARITABLE OR BOTH RELIGIOUS AND CHARITABLE PURPOSE. THEREFORE, THE HIGH COURT HAD E RRED IN REFUSING TO INTERFERE WITH THE OBSERVATIONS OF THE TRIBUNAL IN RESPECT OF THE CHARACTER OF THE TRUST ON THE GROUNDS THAT THEY WERE PURE FINDINGS OF FACT. (II) THAT THE OBJECTS OF THE ASSESSEE-TRUST WERE NO T INDICATIVE OF A WHOLLY RELIGIOUS PURPOSE BUT WERE COLLECTIVELY INDICATIVE OF BOTH CHARITABLE AND RELI- GIOUS PURPOSES. ALTHOUGH OBJECTS (C) AND (F) WHICH PROVIDED FOR ACTIVITIES COMPLETELY RELIGIOUS IN NATURE AND RESTRICTED TO TH E 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 R ESOLVED TO ABIDE BY THE PATH OF GODLINESS SHOWN BY ALLAH WOULD NOT BE SUFFI CIENT TO CONCLUDE THAT THE ENTIRE PURPOSE AND ACTIVITIES OF THE TRUST WERE PUR ELY RELIGIOUS IN COLOUR. THE OBJECTS REFLECTED THE INTENT OF THE TRUST AS OBSERV ANCE 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 PR OVISION OF FOOD TO THE PUBLIC ON RELIGIOUS DAYS OF THE COMMUNITY, THE ESTA BLISHMENT OF MADARSAS AND ORGANISATIONS FOR DISSEMINATION OF RELIGIOUS EDUCAT ION AND RENDERING ASSIST- ANCE TO THE NEEDY AND POOR FOR RELIGIOUS ACTIVITIES WOULD REFLECT THE ESSENCE OF CHARITY. THE ACTIVITY OF PROVIDING FOR FOOD ON CERT AIN SPECIFIC OCCASIONS AND OTHER RELIGIOUS AND AUSPICIOUS EVENTS OF THE DAWOOD I BOHRA COMMUNITY DID NOT RESTRICT THE BENEFIT TO THE MEMBERS OF THE COMM UNITY. NEITHER THE RELIGIOUS TENETS NOR THE OBJECTS AS EXPRESSED LIMITED THE SER VICE OF FOOD ON THESE OCCA- SIONS TO MEMBERS OF THE SPECIFIC COMMUNITY. THE EST ABLISHMENT OF MADARSAS OR INSTITUTIONS TO IMPART RELIGIOUS EDUCATION TO TH E MASSES WOULD QUALIFY AS A CHARITABLE PURPOSE QUALIFYING UNDER THE HEAD OF EDU CATION UNDER THE PROVI- SIONS OF SECTION 2(15) OF THE ACT. SIMILARLY, ASSIS TANCE BY THE ASSESSEE-TRUST TO THE NEEDY AND POOR FOR RELIGIOUS ACTIVITIES WOULD N OT DIVEST THE TRUST OF ITS ALTRUIST CHARACTER. THEREFORE, THE OBJECTS OF THE T RUST EXHIBITED THE DUAL TENOR OF RELIGIOUS AND CHARITABLE PURPOSES AND ACTIVITIES. S ECTION 11 OF THE ACT ALLOWED SUCH TRUST WITH COMPOSITE OBJECTS TO CLAIM EXEMPTIO N FROM TAX AS A RELIGIOUS ITA NO.1352/PN/2014 DIOCESE OF PUNE (CNI) 7 AND CHARITABLE TRUST SUBJECT TO THE PROVISIONS OF S ECTION 13. THE ACTIVITIES OF THE TRUST UNDER SUCH OBJECTS WOULD, THEREFORE, BE E NTITLED TO EXEMPTION ACCORDINGLY. IN RE : TRUSTEES OF THE TRIBUNE [1939] 7 ITR 415 (P C) AND IN RE : SOUTH PLACE ETHICAL SOCIETY; BARRALET V. ATTORNEY GENERAL [1980] 3 ALL ER 918; [1980] 1 WLR 1565; 54 TAX CAS 446 APPLI ED. (III) THAT THE OBJECTS OF THE ASSESSEE-TRUST WERE B ASED 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 TH US, 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 BENEFI T 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 THEREB Y, IT WOULD BE ELIGIBLE TO CLAIM EXEMPTION UNDER SECTION 11 OF THE ACT. 12. IN VIEW OF THE ABOVE SAID PROPOSITION LAID DOWN BY THE HONBLE 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 CHARITABL E OR RELIGIOUS IN NATURE. THE QUESTION WHICH ARISES FOR CONSIDERATION BEFORE US IS WHETHER THE TRUST WHOSE OBJECTS WERE RELIGIOUS AS WELL AS CHARITABLE WOULD BE ENTITLED F OR REGISTRATION UNDER SECTION 12A OF THE ACT. LOOKING AT THE OBJECTS OF THE TRUST, WE F IND THAT ONE OF THE OBJECTS OF THE ASSESSEE TRUST WAS TO PROVIDE AMBULANCE FACILITY TO PEOPLE AT LARGE. THE OBJECT NOS.2, 6 AND 7 OF THE TRUST, WERE ADMITTEDLY RELATI NG TO CHRISTIAN COMMUNITY. HOWEVER, OTHER OBJECT NOS.3, 4, 5 WAS TO PROVIDE AM BULANCE FACILITY TO PEOPLE AT LARGE, TO ESTABLISH AND ADMINISTER EDUCATIONAL INST ITUTIONS FOR NEEDY AND DESERVING CHRISTIAN STUDENTS IN PARTICULAR AND OTHERS IN GENE RAL, TO ESTABLISH HOSTELS, LIBRARIES, ETC. FOR CHRISTIAN BOYS AND GIRLS IN PARTICULAR AND OTHER DESERVING & NEEDY BOYS AND GIRLS IN GENERAL. THE OBJECTS OF THE ASSESSEE TRUS T THUS, REFLECT THE ACTIVITIES TO BE CARRIED ON FOR THE PURPOSE OF JAIN RELIGION AND ALS O 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. 13. NOW, COMING TO THE SECOND ISSUE OF GRANT OF REG ISTRATION UNDER SECTION 12A OF THE ACT, WHERE THE TRUST WAS BOTH CHARITABLE AND RE LIGIOUS. THE HONBLE GUJARAT HIGH COURT IN CIT VS. CHANDRA CHARITABLE TRUST (SUPRA) H AD LAID DOWN THAT EVEN WHERE THE OBJECTS OF THE TRUST WERE NOT ONLY TO PROPAGATE THE JAINISM OR HELP AND ASSIST MAINTENANCE OF TEMPLES, SADHUS, SADHVIS, SHRAVIKS A ND SHRAVAKS, AND OTHER GOALS ITA NO.1352/PN/2014 DIOCESE OF PUNE (CNI) 8 AS SET OUT IN THE TRUST DEED, THE TRUST WAS A CHARI TABLE AS WELL AS RELIGIOUS TRUST AND SECTION 13(1)(B) OF THE ACT WOULD NOT BE APPLICABLE . SIMILAR PROPOSITION HAS BEEN LAID DOWN BY THE HONBLE GUJARAT HIGH COURT IN CIT VS. B ARKATE SAIFIYA SOCIETY (1995) 213 ITR 492 (GUJ), WHEREIN IT WAS HELD THAT THE EXCLUSI ON FROM EXEMPTION UNDER SECTION 13(1)(B) OF THE ACT APPLIES ONLY TO CHARITABLE TRUS T AND CHARITABLE INSTITUTION AND IF THE TRUST WAS CHARITABLE AS WELL AS RELIGIOUS IN NATURE , THE ASSESSEE WOULD BE ENTITLED TO EXEMPTION UNDER SECTION 11 OF THE ACT. 14. SIMILAR PROPOSITION HAS ALSO BEEN LAID DOWN BY THE HONBLE SUPREME COURT IN CIT VS. DAWOODI BOHRA JAMAT (SUPRA) WHILE HOLDING T HE TRUST ELIGIBLE TO CLAIM EXEMPTION UNDER SECTION 11 OF THE ACT. IN THE TOTA LITY OF THE ABOVE SAID FACTS AND CIRCUMSTANCES, WE HOLD THAT THE ASSESSEE IS A CHARI TABLE RELIGIOUS TRUST AND THE PROVISIONS OF SECTION 13(1)(B) OF THE ACT WOULD NOT BE APPLICABLE. IN VIEW THEREOF, WE DIRECT THE COMMISSIONER TO GRANT REGISTRATION TO TH E ASSESSEE UNDER SECTION 12A OF THE ACT AS CHARITABLE RELIGIOUS TRUST. THE GROUNDS OF APPEAL RAISED BY THE ASSESSEE ARE ALLOWED. 15. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED ON THIS 31 ST DAY OF MARCH, 2015. SD/- SD/- (G.S. PANNU) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER PUNE, DATED: 31 ST MARCH, 2015. GCVSR COPY OF THE ORDER IS FORWARDED TO: - 1) THE ASSESSEE; 2) THE DEPARTMENT; 3) THE CIT-I, PUNE; 4) THE DR B BENCH, I.T.A.T., PUNE; 5) GUARD FILE. BY ORDER //TRUE COPY// ASSISTANT REGISTRAR I.T.A.T., PUNE