St. Michael's Educational Association, V. C.I.T.-1,

ITA 141/PAT/2012

• Counselvise Citation: [2015] 140 COUNSELVISE.COM (IT) 93636 (ITAT-PATNA)
• Duration Of Justice: 2 year(s) 9 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-07-2015
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 28-09-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ARCHANA SINHA
• Assessee Lawyers: GIRISH PANDEY
• Keywords: Charitable institution; Competent authority
• Section: 12AA; 12; 11

Judgement Text

, PATNA IN THE INCOME TAX APPELLATE TRIBUNAL , PATNA BENCH, PATNA . . , , BEFORE SHRI A.D. JAIN (JM) AND SHRI SANJAY ARORA (AM) ./ I.T.A. NO . 141/PAT/2012 ( / ASSESSMENT YEAR: NA ) ST. MICHAELS EDUCATIONAL ASSOCIATION ST. MICHAELS HIGH SCHOOL, DIGHA GHAT PO, PATNA 800 022 / VS. CIT 1, PATNA ./ ./ PAN/GIR NO. AABTS 2806 F ( / APPELL ANT ) : ( / RESPONDENT ) / APPELLANT BY : SHRI AMIT SHRIVASTAVA, SHRI NILMANI KUMAR, SHRI SHIKESH JHA & SHRI GIRISH PANDEY / RESPONDENT BY : SMT. ARCHANA SINHA / DATE OF HEARING : 22.04.2 015 / DATE OF PRONOUNCEMENT : 22 .07.2015 / O R D E R PER SANJAY ARORA, A. M.: THIS IS AN A PPEAL BY THE ASSESSEE AGITATING THE ORDER U/S.12AA(B)(II) OF THE INCOME TAX ACT, 1961 (THE ACT HEREINAFTER) DATED 28.06.2012 BY THE COMMISSI ONER OF INCOME TAX I, PATNA (CIT FOR SHORT) , WITHDRAWING THE ASSESSEES REGISTRATION AS A CHARITABLE INSTITUTION U/S.12AA OF THE ACT. 2 ITA NO. 141/PAT/2012 ST. MICHAELS EDUCATIONAL ASSOCIATION VS. CIT 2. THE CONTROVERSY INVOLVED IN THE INSTANT CASE IS THE MAINTAINABILITY OR OTHERWISE IN LAW OF THE WITHDRAWAL OF REGIST RATION AS ENVISAGED U/S.12A R/W S.12AA OF THE ACT TO THE ASSESSEE SOCIETY IN THE FACTS AND CIRCUMSTANCES OF THE CASE VIDE THE IMPUGNED ORDER . 3. THE PRINCIPAL GROUND ON WHICH REGISTRATION U/S.12A R/W S. 12AA OF THE ACT HAS BEEN WITHDRAWN U/S.12AA(3), I.E ., AFTER ITS GRANT VIDE ORDER DATED 26.04.1985 , IN THE INSTANT CASE BY THE COMPETENT AUTHORITY IS THAT THE ASSESSEE, REGISTERED AS A PUBLIC CHARITABLE INSTITUTION UNDER THE SOCIETIES REGISTRATION ACT, 1860 , HAS BEEN DECLARED AS A MINORITY EDUCATIONAL INSTI TUTION (MEI) WITHIN THE MEANING OF SECTION 2(G) OF THE N ATIONAL COMMISSION FOR M INORITY EDUCATIONAL INSTITUTIONS ACT, 2004 (NCMEI ACT) VIDE CERTIFICATE DATED 18.07.2004 TO THIS EFFECT ISSUED BY THE NATIONAL COMMISSION FOR MINORITY INSTITUTIONS (NC MI ) . THE ASSESSEE RUNS AND MANAGES A SCHOOL BY THE NAME ST. MICHAELS HIGH SCHOOL AT PATNA. CLAUSES OF ITS M EMORANDUM AS WELL AS R ULES AND R EGULATIONS CLEARLY POINT TO IT BEING ESTABLISHED FOR THE BENEFIT OF A PARTICULAR RELIGIOUS COMMUNITY , I.E., THE CHRISTIAN COM MUNITY, SO THAT SECTION 13(1)(B) OF THE ACT WHICH READS AS UNDER, IS ATTRACTED: 13. (1) NOTHING CONTAINED IN SECTION 11 OR SECTION 12 SHALL OPERATE SO AS TO EXCLUDE FROM THE TOTAL INCOME OF THE PREVIOUS YEAR OF THE PERSON IN RECEIPT THEREOF (A) .................. (B) IN THE CASE OF A TRUST FOR CHARITABLE PURPOSES OR A CHARITABLE INS TITUTION CREATED OR ESTABLISHED AFTER THE COMMENCEMENT OF THIS ACT, ANY INCOME THEREOF IF THE TRUST OR INSTITUTION IS CREATED OR ESTABLISHED FOR THE BENEFIT OF ANY PARTICULAR RELIGIOUS COMMUNITY OR CASTE . [EMPHASIS SUPPLIED] 4. WE HAVE HEARD THE PARTIES, AND PERUSED THE MATERIAL ON RECORD. 4.1 WE MAY , TO BEGIN WITH, CLARIFY THAT TH E ISSUE WITH REGARD TO THE MINORITY STATUS BEING BY ITSELF A DEBILITATING FACTOR, I .E., FOR GRANT OF REGISTRATION UNDER THE ACT AS A CHARITABLE INSTITUTION , STANDS DECIDED AS BEING NOT SO, I.E., IN FAVOUR OF THE MINORITY INSTITUTION, BY THE DECISION BY THE TRIBUNAL IN THE CASE OF INTERNATIONAL SCHOOL OF HUMAN RESOURCES AND SOCIAL WELFARE SOCIETY (IN ITA NOS. 72/PAT/2011 & 99/PAT/2012 DATED 3 ITA NO. 141/PAT/2012 ST. MICHAELS EDUCATIONAL ASSOCIATION VS. CIT 20.07.2015). A MAJORITY INSTITUTION, I.E., WHERE EXPRESSED TO BE FOR THE BENEFIT OF THE MAJORITY COMMUNITY , RECKONED EITHER IN TERMS OF THE RELIGION OR CAST E , WOULD BE EQUALLY VIOLATIVE OF SECTION 13(1) (B) AND, THUS, THE SAID STATUS IS ITSELF OF NO CONSEQUENCE. THE ADMISSION OF NON MINORITY STUDENTS IN A MEI IN MINORITY, AS WHERE THE BULK OF THE STUDENTS BELONG TO THE NON MINORITY COMMUNITIES, IS , AGAIN, IT STAND S EXPLAINED, OF LITTLE CONSEQUENCE, AS WHA T IS OF RELEVANCE IS WHETHER THE INSTITUTION IS AUTHORIZED BY ITS CONSTITUTION TO ACCORD ANY PREFERENCE IN THE MATTER OF ADMISSION OR NOT. WHAT IS OF RELEVANCE, AND PARAMOUNT, IS THAT THE ASSESSEE SOCIETY HAS THE RELEVANT POWER OR MANDATE PER ITS CHARTER. THAT IT MAY NOT EXERCISE IT, OR MAY CHOOSE NOT TO, IS ANOTHER MATTER (REFER: DELHI STOCK EXCHANGE ASSOCIATION LTD. VS. CIT [1997] 225 ITR 235 (SC)). WHERE, HOWEVER, THE RE IS NO SUCH AUTHORIZATION , IT COULD NOT BE SAID THAT IT IS ONE ESTABLISHED FOR THE BEN EFIT OF A PARTICULAR COMMUNI TY IN AS MUCH AS STUDENTS FO R M THE PRINCIPAL BENEFICIAR IES OF THE SAID INSTITUTION , I.E., APART FROM IT ALSO PROVIDING A SOURCE OF EMPLOYMENT FOR THE MEMBERS OF THE SAID COMMUNITY. THE FACT OF IT BEING RUN AND ADMINISTERED BY PE RSON S BELONGING TO A PARTICULAR RELIGIOUS COMMUNITY, A FACT, THOUGH RELEVANT , IN A S MUCH AS IT IS THE TOTALITY OF THE FACTS AND CIRCUMSTANCES , INCLUDING THE MANNER IN WHICH IT IS BEING RUN , THAT HAVE TO BE TAKEN INTO ACCOUNT (REFER: BUXAR DIOCESAN SOCIETY VS. CIT (IN ITA NO. 104/PAT/2012 DATED 20.07.2015) ), MAY NOT IN SUCH A CASE IMPINGE ADVERSELY ON ITS CHARACTER , I.E., TO HOLD IT AS ONE ESTABLISHED FOR THE BENEFIT OF A PARTICULAR RELIGIOUS COMMUNITY. PRIVATE (UN AIDED) EDUCATIONAL INSTITUTIONS, EVEN OTHER WISE , ENJOY COMPLETE FREEDOM IN THE MATTER OF ADMISSION AS PER THE GUIDELINES ISSUED BY THE HONBLE APEX COURT . ACCORDINGLY, FINDING NO RIGHT IN RESPECT OF ADMISSION RESE R VED OR OTHERWISE EXPRESSED IN ITS CHARTER, THE TRIBUNAL IN INTERNATIONAL SCHOOL OF HU MAN RESOURCES AND SOCIAL WELFARE SOCIETY (SUPRA ) FOUND THAT THE MINORITY STATUS ITSELF WOULD NOT BE DETRIMENTAL TO ITS CASE FOR BEING NOT COVERED BY SECTION 13(1)(B) (REFER PARA 5 OF THE SAID O RDER ). 4.2 WE MAY NEXT CONSIDER THE FACTS OF THE CASE . THE OB JECT CLAUSES READ AS UNDER: 4 ITA NO. 141/PAT/2012 ST. MICHAELS EDUCATIONAL ASSOCIATION VS. CIT 3 ( B) TEACH: TO DIFFUSE SOCIAL, RELIGIOUS, S ECULAR AND SCIENTIFIC KNOWLEDGE; AS REGARDS EDUCATION AND EDUCATIONAL INSTITUTIONS PRIMARILY FOR CATHOLIC , AND IN ADDITION FOR MEMBER OF OTHER COMMUNITIES, WITHOUT DISTINCTION OF CAS T OR CREED. 3(N) RESUME: TO DO OR CAUSE TO BE DONE ANY OR ALL SUCH ACTS OR THINGS AS ARE NOT CONTRARY TO THE CONSTITUTION OF THE SOCIETY OF JESUS NOR TO THE CANON LAW OF THE CATHOLIC CHURCH NOR TO THE LAWS UNDER WHICH THIS ASSOCIATION IS ORGANIZED. RU LES AND R EGULATIONS : PRELIMINARY : . AN WORDS, TERMS, OR EXPRESSIONS HAVING A RELIGIOUS ECCLESIASTICAL BEARING SHALL HAVE THE MEANING ATTRIBUTED TO THEM IN THE CANON LAW OF THE CATHOLIC CHURCH AND IN THE CONSTI TUTION OF THE SOCIETY OF JESUS; . FURTHER, PARA 3 OF THE RULES AND REGULATIONS OF THE ASSESSEE ASSOCIATION RELATING TO MEMBERS READ S AS : ONLY MEMBERS OF THE RELIGIOUS ORDER OF THE SOCIETY OF JESUS ARE ELIGIBLE AS MEMBERS OF THE ASSOCIATION . WE, IN VIEW OF THE CLEAR RESTRICTION OF THE R IGHT OF MEMBERSHIP OF THE ASSESSEE SOCIETY, WHO WOULD CONSTITUTE ITS G OVERNING BODY, AS WELL AS THOSE RELATING TO ITS AFFAIRS , I.E., THE MANNER IN WHICH IT IS ADMINIST ERED , WHICH IS EXPRESSED TO WORK PRIMARILY FOR CHRISTIANS, A RELIGIOUS COMMUNITY, HAVE LI TTLE HESITANCY IN HOLDING THAT SECTION 13(1)(B) IS CLEARLY APPLICABLE IN THE PRESENT CASE. IN FACT, A RESOLUTION OF THE GENERAL BODY WAS PASSED ON 11.08.1986 , WHICH READS AS UNDER: RESOLVED THAT : THE MEMORANDU M OF ASSOCIATION OF ST. MICHAEL S EDUCATION AL ASSOCIATION SHOULD INCLUDE THE FOLLOWING WORDS AT THE END OF CLAUSE NO. 3 ( B) UNDER THE CAPTION OBJECTS AS FOLLOWS : AS REGARDS EDUCATION AND EDUCATIONAL INSTITUTION, PRIMARILY FOR CATHOLICS , AND IN ADDITION FOR MEMBERS OF OTHER COMMUNITIES WITHOUT D ISTINCTION OF CASTE OR CREED. THE RESOLUTION AND AMENDMENT WERE PASSED UNANIMOUSLY. THE MINUTES OF THE SAID MEETING READS AS UNDER: CLIENTELE: WE ARE A CATHOLIC SCHOOL , COMMITTED TO THE SERVICE OF F A ITH IN GOD .... OUR FIRST CONCERN IS TOWARDS THE C HRISTIANS OF PATNA . THEREFORE ADMISSION WILL BE GRANTED TO ANY CHRISTIAN BOY .. ETC. THE SECRETARY AGREED THAT OUR PURPOSE IS CLEAR AND WELL KNOWN BUT FOR THE SAKE OF LEGALITY, IT MUST BE MADE EXPLICIT IN OUR MEMORANDUM. [EMPHASIS IN THE REPRODUCTIO N, OURS] 5 ITA NO. 141/PAT/2012 ST. MICHAELS EDUCATIONAL ASSOCIATION VS. CIT 4.3 THE LD. AUTHORIZED REPRESENTATIVE ( A R ) WAS DURING HEARING SPECIFICALLY ENQUIRED BY THE B ENCH AS TO WHAT IS MEANT BY OR THE SCOPE OF THE WORDS PRIMARILY FOR CATHOLICS , TO WHICH HE ADMITTED IS TO IMPLY A CLEAR PREFERENCE TO THE PRACTITIONER S OF THE SAID FAITH IN REGARD TO THE CONDUCT AND AFFAIRS OF THE INSTITUTION, INCLUDING THE ADMISSION THERETO AND ITS MANAGEMENT , EVEN AS SOUGHT TO BE CLARIFIED PER ITS C HARTER . HE WOULD FURTHER DRAW OUR ATTENTION TO THE WORDS SECULAR AND SCIENTIFIC AS APPE ARING IN CLAUSE 3(B)(SUPRA) OF THE OBJECT CLAUSE. THAT, TO OUR MIND , WOULD BE OF LITTLE RELEVANCE IN AS MUCH AS THE SAME CONCERNS THE NATURE OR THE QUALITATIVE ASPECT OF THE EDUCATION , WHILE THE ISSUE OR THE ASPECT BEING CONSIDERED BY US IS THE IDENTITY O F THE RECIPIENT OF THE EDUCATION, I.E., WHO STAND TO BENEFIT THERE FROM AND TO WHOM THE SAME IS TARGETED, I.E., ITS BENEFICIARY. IN THIS CONTEXT, T HE EXPRESSION IN PARTICULAR CAME FOR THE CONSIDERATION BY THE APEX COURT IN CIT VS. KAMLA TOWN TRUST [ 1996] 217 ITR 699 (SC). IN THE FACTS OF THAT CASE THE OBJECT OF THE TRUST INCLUDED CONSTRUCTION OF HOUSES FOR WORKMEN IN GENERAL AND, IN PARTICULAR, FOR THE WORKMEN, STAFF AND OTHER EMPLOYEES OF THE SETTLER COMPANY. THE HONBLE COURT OBSERVED THAT THOUGH THE PR OVISION 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 PU RPOSES. 4.4 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 THE REGISTRATION, I.E., IF NOT TOWARD GRANT OF EXEMPT ION U/SS. 11 AND 12 OF THE ACT. A S OBSERVED BY THE TRIBUNAL I N INTERNATIONAL SCHOOL OF HUMAN RESOURCES AND SOCIAL WELFARE SOCIETY ( SUPRA) : WHAT, WE ARE UNABLE TO COMPREHEND, EFFECT OR PURPOSE THE REGISTRATION WOULD HAVE WHERE, NOTWITHSTANDING THE SAME, NO BENEFIT U/SS. 11 AND 12 CAN BE ALLOWED IN VIEW OF AN ABIDIN G FEATURE OF THE APPLICANTS CONSTITUTION OR ITS INHERENT NATURE. 6 ITA NO. 141/PAT/2012 ST. MICHAELS EDUCATIONAL ASSOCIATION VS. CIT THIS ASPECT OF THE MATTER ALSO GETS SUPPORT FROM THE DECISION IN THE CASE OF CIT VS. DAWOODI BOHRA JAMAT [2014] 364 ITR 31 (SC) , WHEREIN THE HONBLE COURT APPROVED THE APPLICABILITY OF S. 13(1)(B) AS A VALID GROUND WHILE CONSIDERING THE ISSUE OF REGISTRATION U/S. 12AA OF THE ACT IN AS MUCH AS REGISTRATION IS A PRE REQUISITE FOR AVAILING THE BENEFIT OF SS. 11 & 12 (PG. 41) , APPROVING OF REGISTRATION ON A FINDING OF NON APPLICABILITY OF S . 13(1)(B) . IN THE FACTS OF THE PRESENT CASE, WE HAVE FOUND THE ASSESSEE SOCIETY TO BE FORMED FOR THE BENEFIT OF THE CHRISTIAN COMMUNITY , AND WHICH THEREFORE COULD DEFINITELY FORM A GROUND FOR WITHDRAWAL OF ITS REGISTRATION IN AS MUCH AS ITS INCOME IS LIAB LE TO BE EXCLUDED FOR CONSIDERATION U/SS. 11 AND 12 OF THE ACT. 4.5 DURING HEARING, THE PRINCIPAL ARGUMENT ADVANCED BY THE LD. AR WAS OF THE ASSESSEES CASE BEING COVERED BY THE DECISION IN THE CASE OF DAWOODI BOHRA JAMAT (SUPRA) IN AS MUCH AS THE AP EX C OURT IN THAT CASE HA S CLARIFIED IN FAVOUR OF SECTION 13(1)(B) BEING NOT APPLICABLE AS THE SOCIETY WAS NOT ESTABLISHED EXCLUSIVELY FOR THE BENEFIT OF THE BOHRA COMMUNITY , I.E., THE PARTICULAR RELIGIOUS COMMUNITY UNDER REFERENCE IN THAT CASE . WE HAVE CAR EFULLY PERUSED THE SAID DECISION, TO FIND THE SA ID ARGUMENT AS BEING IN FACT A MISREADING OF THE SAID DECISION. THE A PEX C OURT NOWHERE A TTEMPTS TO INTERPRET OR DILATE ON THE SCOPE OF THE SAID PROVISION, WHICH IS OTHERWISE APPARENT, OR HOLD S THE WORDS FOR THE BENEFIT OF ANY PARTICULAR RELIGIOUS COMMUNITY OR CASTE , OCCURRING THEREIN , TO MEAN ONLY OR EXCLUSIVELY FOR THE BENEFIT OF ANY PARTICULAR RELIGIOUS COMMUNITY OR CASTE . RATHER, THE TRIBUNAL, IN BUXAR DIOCESAN SOCIETY (SUPRA) , UPON BEING CONFRONTED WIT H SUCH AN ARGUMENT, HELD AS UNDER: 4.2 .. THE WORD ONLY CANNOT BE IMPORTED IN S. 13(1)(B), I.E., PRIOR TO THE WORDS FOR THE BENEFIT THEREIN. C ASUS OMISSUS CANNOT BE LIGHTLY INFERRED (REFER: PADMASUNDARA RAO (DECD.) VS. STATE OF TAMIL NADU [2002] 25 5 ITR 147 (SC)). THEN, AGAIN, WHAT PREVENTS A TRUST/INSTITUTION, EXPRESSLY FOR THE BENEFIT OF A PARTICULAR RELIGIOUS COMMUNITY, IN AS MUCH AS IT SEEKS TO PROTECT, SERVE AND PROMOTE ITS INTEREST, CATER ONLY THERETO. THAT IS, IT CANNOT BE SAID TO VIOLATE THE TERMS OR THE MANDATE OF ITS CHARTER WHEN IT, THROUGH ITS PROJECTS, PROGRAMS OR OTHER UNDERTAKINGS, SERVE S ONLY THE INTEREST OF THE SAID PARTICULAR COMMUNITY, EVEN AS OTHER COMMUNITIES ARE NOT EXCLUDED. PEOPLE DRAWN FROM A CROSS SECTION OF THE SOCIETY, AFF ILIATED BY A BOND OF RELIGION, 7 ITA NO. 141/PAT/2012 ST. MICHAELS EDUCATIONAL ASSOCIATION VS. CIT AS ITS BENEFICIARIES , WOULD NOT ADVERSELY IMPACT OR DETRACT FROM ITS PUBLIC CHARACTER ( AHMEDABAD RANA CASTE ASSOCIATION VS. CIT [1971] 82 ITR 704 (SC)). THE WORD ONLY THUS IS NOT REQUIRED IN ITS MEMORANDUM, AND THE WORDS I N PARTICULAR SERVE THE DESIRED PURPOSE WELL. ITS MEMBERSHIP INURES ONLY TO AND THE MANAGEMENT VESTS ONLY IN A RESTRICTED CATEGORY OF CHRISTIANS, I.E., BELONGING TO A PARTICULAR RELIGIOUS ORDER. IT IS TO SERVE THE SAID COMMUNITY, WHICH IS ONLY A PARTICULAR RELIGIOUS COMMUNITY, THAT THE ASSESSEE SOCIETY IS FORMED AND IS BEING ADMINISTERED. THE OBSERVATIONS UNDER REFERENCE BY THE A PEX C OURT IN DAWOODI BOHRA JAMAT (SUPRA) ARISE IN THE CONTEXT OF IT BEING HOLDING THE SOCIETY UNDER REFE RE NCE TO BE THE COMPOS ITE TRUST. SECTION 13(1)(B), IT FURTHER EXPLAINS , WOULD APPLY TO SUCH A TRUST (PARA 45, PAGE 51 OF THE REPORTS) . I N THE FACTS OF THAT CASE , IT FOUND THAT WHILE THE RELIGIOUS OBJECTS OF THE TRUST WERE FOR THE BENEFIT OF THE BOHRA COMMUNITY, THE CHARITABLE O BJECTS WERE NOWHERE EXPRESSED TO BE FOR THE BENEFIT OF THE SAID COMMUNITY ALONE. THAT IS, THE SAME WOULD ACCRUE OR INURE TO ALL, WITHOUT RESTRICTION AS TO RELIGION OR CASTE. IT IS IN THIS CONTEXT THAT THE APEX COURT STATES OF THE BENEFIT OF THE OBJECTS AS NOT RESERVED EXCLUSIVELY FOR BOHRA COMMUNITY, BUT TO EXTEN D TO THE PUBLIC AT LARGE. SPECIFIC REFERENCE MAY BE DRAWN TO PARA S 39 AND 40 (AT PGS. 49 AND 50 OF THE REPORTS ) FOR READY REFERENCE: 39. THE PROVISION OF FOOD TO THE PUBLIC ON RELIGIOUS DAYS OF THE COMMUNITY AS PER OBJECT (A) AND (B), THE ESTABLISHMENT OF MADARSA AND ORGANIZATIONS FOR DISSEMINATION OF RELIGIOUS EDUCATION UNDER OBJECT (D) AND RENDERING ASSISTANCE TO THE NEEDY AND POOR FOR RELIGIOUS ACTIVITIES UNDER OBJECT (E) WOULD REFLECT THE ESS ENCE OF CHARITY. THE OBJECTS (A) AND (B) PROVIDE FOR ARRANGEMENT FOR NYAZ AND MAJLIS (LUNCH AND DINNER) ON THE RELIGIOUS OCCASION OF THE BIRTH ANNIVERSARY AND URS MUBARAK OF AWLIYA E QUIRAM (SA) AND THE SAINTS OF THE DAWOODJI BOHRA COMMUNITY AND FOR ARRANG EMENT OF LUNCH AND DINNER ON RELIGIOUS OCCASIONS AND AUSPICIOUS DAYS OF THE DAWOODI BOHRA COMMUNITY, RESPECTIVELY. NYAZ REFERS TO THE FOOD A PERSON MAKES AND OFFERS TO OTHERS ON ANY PARTICULAR OCCASION ON THE OCCASION OF THE DEATH OF A SAINT AND MAJHLIS IM PLIES A PLACE OF GATHERING OR MEETING. THE ACTIVITY OF PROVIDING FOR FOOD ON CERTAIN SPECIFIC OCCASIONS AND OTHER RELIGIOUS AND AUSPICIOUS EVENTS OF THE DAWOODI BOHRA COMMUNITY DO NOT RESTRICT THE BENEFIT TO THE MEMBERS OF THE COMMUNITY. NEITHER THE RELIGI OUS TENETS NOR THE OBJECTS AS EXPRESSED LIMIT THE SERVICE OF FOOD ON THE SAID OCCASIONS ONLY TO THE MEMBERS OF THE SPECIFIC COMMUNITY. THUS, THE ACTIVITY OF NYAZ PERFORMED BY THE RESPONDENT TRUST 8 ITA NO. 141/PAT/2012 ST. MICHAELS EDUCATIONAL ASSOCIATION VS. CIT DOES NOT DELINEATE A SEPARATE CLASS BUT EXTENDS THE BENEFIT OF FREE SERVICE OF FOOD TO PUBLIC AT LARGE IRRESPECTIVE OF THEIR RELIGION, CASTE OR SECT AND THEREBY QUALIFIES AS A CHARITABLE PURPOSE WHICH WOULD ENTAIL GENERAL PUBLIC UTILITY. 40. FURTHER, ESTABLISHMENT OF MADARSA OR INSTITUTIONS TO IMPART RELIGIOUS ED UCATION TO THE MASSES WOULD QUALIFY AS A CHARITABLE PURPOSE QUALIFYING UNDER THE HEAD OF EDUCATION UNDER THE PROVISIONS OF SECTION 2(15) OF THE ACT. THE INSTITUTIONS ESTABLISHED TO SPREAD RELIGIOUS AWARENESS BY MEANS OF EDUCATION THOUGH ESTABLISHED TO PROM OTE AND FURTHER RELIGIOUS THOUGHT COULD NOT BE RESTRICTED TO RELIGIOUS PURPOSES. THE HOUSE OF LORDS IN BARRALET V. IR 54 TC 446, HAS OBSERVED THAT 'THE STUDY AND DISSEMINATION OF ETHICAL PRINCIPLES AND THE CULTIVATION OF RATIONAL RELIGIOUS SENTIMENT' WOULD FALL IN THE CATEGORY OF EDUCATIONAL PURPOSES. THE MADARSA AS A MOHOMMEDAN INSTITUTION OF TEACHING DOES NOT CONFINE INSTRUCTION TO ONLY DISSIPATION OF RELIGIOUS TEACHINGS BUT ALSO CONTRIBUTES TO THE HOLISTIC EDUCATION OF AN INDIVIDUAL. THEREFORE, IT CANNOT BE SAID THAT THE OBJECT (D) WOULD EMBODY A RESTRICTIVE PURPOSE OF RELIGIOUS ACTIVITIES ONLY. SIMILARLY, ASSISTANCE BY THE RESPONDENT TRUST TO THE NEEDY AND POOR FOR RELIGIOUS ACTIVITIES WOULD NOT DIVEST THE TRUST OF ITS ALTRUIST CHARACTER. THE SU MMAT ION BY THE HONBLE APEX COURT AT THE PENULTIMATE PARA ( PARA 49 / PGS. 52 5 3 OF THE REPORTS ), THAT THE OBJECTS AND THE PURPOSE S OF THE RESPOND ENT TRUST DEMONSTRATE THAT THE ACTIVITIES OF THE TRUST, THOUGH BOTH FOR CHARITABLE AND RELIGIOUS PURPOSES , ARE NOT MEANT EXCLUSIVELY FOR A PARTICULAR RELIGIOUS COMMUNITY , ARE TO BE READ IN THAT CONTEXT , FOR WHICH IT ALSO ADVER TS THEREIN TO THE PRECEDING PARAGRAPHS, SO THAT THE PROVISION OF SECTION 13(1)(B) OF THE ACT SHALL NOT APPLY. 5. WE, IN VIEW OF THE FOREGOING, FIND L ITTLE MERIT IN THE ASSESSEES CASE. 6. IN THE RESULT, THE ASSESSEES APPEAL IS DISMISSED. ORDER PRONOUNCED BY LISTING THE RESULT ON THE NOTICE BOARD OF THE BENCH UNDER RULE 34(4) OF THE APPELLATE TRIBUNAL RULES, 1963. SD/ SD/ ( A. D. JAIN ) (S ANJAY ARORA) / J UDICIAL MEMBER / A CCOUNTANT MEMBER 9 ITA NO. 141/PAT/2012 ST. MICHAELS EDUCATIONAL ASSOCIATION VS. CIT DATED : 22.07.2015 . . ./ ROSHANI , SR. PS / COPY OF THE ORDER FOR WARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. ( ) / THE CIT(A) 4. / CIT CONCERNED 5. , , / DR, ITAT, PATNA 6. / GUARD F ILE / BY ORDER, / (DY./ASSTT. REGISTRAR) , ITAT, PATNA