THE AHBAB BAHU UDDESHIYA EDUCATION SOCIETY , NAGPUR V. CIT(EXEMPTIONS ), PUNE

ITA 160/NAG/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 4500 (ITAT-NAGPUR)
• Duration Of Justice: 4 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 26-10-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 08-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R K BARAL
• Keywords: Gift; Charitable institution
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH, NAGPUR BEFORE SHRI SANDEEP GOSAIN, JUDICIAL MEMBER AND SHRI G. MANJUNATHA, ACCOUNTANT MEMBER ITA NO.160/NAG./2018 ( ASSESSMENT YEAR : N.A. ) THE AHBAB BAHU UDDESHIYA EDUCATION SOCIETY, DR. SAQUIB HUSSAIN, SECRETARY 43, AHBAB COLONY, BHIND POLICE LIND TAKLI, NAGPUR 440 013 PANAACTT6506A APPELLANT V/S COMMISSIONER OF INCOME TAX (EXEMP.) PUNE .... RESPONDENT ASSESSEE BY : SHRI ABHAY AGRAWAL REVENUE BY : SHRI R.K. BARAL DATE OF HEARING 24.10.2018 DATE OF ORDER 26.10 .2018 O R D E R PER G. MANJUNATHA, A.M. THE PRESENT APPEAL FILED BY THE ASSESSEE IS AGAINST ORDER DATED 18 TH APRIL 2018, PASSED UNDER SECTION 12AA(1)(B)(II) OF THE INCOME TAX ACT, 1961 (FOR SHORT THE ACT ) R/W RULE 17A OF THE INCOME TAX RULES, 1962, BY THE LEARNED COMMISSIONER OF INCOME TAX (EX EMP.), PUNE, REJECTING THE APPLICATION FILED BY THE ASSESSEE FOR REGISTRATION OF TRUST UNDER SECTION 12AA OF THE ACT. THE GROUNDS RAISED B Y THE ASSESSEE ARE EXTRACTED BELOW:- 2 THE AHBAB BAHU UDDESHIYA EDUCATION SOCIETY 1.THE ORDER PASSED BY THE LEARNED CIT (EXEMPTION) U NDER SECTION 12AA(I)(B)(II) IS BAD IN LAW. 2.THE LEARNED CIT (EXEMPTION) ERRED IN DENYING REGI STRATION TO THE APPELLANT TRUST UNDER SECTION 12A OF THE ACT WITHOU T APPRECIATING THAT THE OBJECT OF THE TRUST WAS TO IMPART 'EDUCATI ON' WHICH IS A 'CHARITABLE PURPOSE' AS PER SECTION 2 (15) OF THE ACT AND THE APPELLANT TRUST HAS COMPLIED WITH ALL THE REQUIREME NTS OF REGISTRATION UNDER SECTION 12A OF THE ACT. 3.THE LEARNED CIT (EXEMPTION) ERRED IN NOT APPRECIA TING VARIOUS CLAUSES OF THE TRUST DEED, WHEREIN CLAUSES 3(B), 3( C) CLEARLY STATES THAT THE OBJECT OF THE APPELLANT TRUST WAS T O IMPART SECULAR EDUCATION TO ALL PERSONS IRRESPECTIVE OF RE LIGION, CASTE, COMMUNITY OR SOCIAL STATUS. 4.WITHOUT PREJUDICE TO AFORESAID GROUNDS, THE LEARN ED CL'T (EXEMPTION) ERRED IN APPLYING PROVISIONS OF SECTION 13AT THE STAGE OF DISPOSING OFF APPLICATION OF APPELLANT TRUST SEE KING REGISTRATION UNDER SECTION 12A OF THE ACT. 5.THE APPELLANT CRAVES LEAVE TO ADD, ALTER, VARY, O MIT, AMEND OR DELETE ONE OR MORE OF THE ABOVE GROUNDS OF APPEAL B EFORE, OR AT THE TIME OF HEARING OF THE APPEAL, SO AS TO ENABLE THE HON'BLE TRIBUNAL TO DECIDE THIS APPEAL ACCORDING TO LAW. 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE, AHBAB BAHU UDDESHIYA EDUCATION SOCIETY, NAGPUR, IS REGISTERED W ITH THE ASSTT. CHARITY COMMISSIONER, NAGPUR, WITH THE MAIN OBJECT OF IMPARTING EDUCATION BY ESTABLISHING SCHOOLS, COLLEGES AND OTH ER INSTITUTIONS FOR THE BENEFIT OF GENERAL PUBLIC AND IN PARTICULAR MIN ORITY COMMUNITY. THE ASSESSEE HAS FILED APPLICATION IN FORM NO.10A FOR R EGISTRATION OF THE TRUST / SOCIETY UNDER SECTION 12A OF THE ACT, ON 9 TH OCTOBER 2017. THE AIMS AND OBJECTS OF THE ASSESSEE TRUST / SOCIETY, A S PER REGISTERED MEMORANDUM OF ASSOCIATION, ARE AS FOLLOWS:- 3 THE AHBAB BAHU UDDESHIYA EDUCATION SOCIETY AIMS & OBJECTS OF THE SOCIETY 3) OBJECTS A) OBJECTS SHALL BE TO ACHIEVE THE EDUCATIONAL AND ALL OTHER GOALS OF THE SOCIETY IN GENERAL AND MUSLIM MINORITY COMMUNITY IN PARTICULAR AS UNDER: B) TO ESTABLISH, EXTEND, CONSTRUCT, ALTER, CONSOLIDATE , SUPPORT, DEVELOP, CONDUCT, ENDOW, ADMINISTER, SCHOOLS, COLLE GES & OTHER INSTITUTIONS TO IMPART ETHICAL EDUCATION AND LIBRAR IES, HOTELS AND READING ROOMS FOR GENERAL USE INCLUDING THE FIELD O F MEDICAL & TECHNICAL EDUCATION. C) TO SUPPORT & PROMOTE THE ADVANCEMENT OF SECULAR IDE AS AND OTHER ACADEMIC ACTIVITIES IN ALL ITS BRANCHES, PART ICULARLY SCHOOLS, COLLEGES, CULTURAL, RECREATIONAL, MEDICAL, TECHNICA L AND SOCIAL SCIENCE CENTRES. D) TO PROVIDE AND ENCOURAGE MEDICAL ASSISTANCE IN THE FORM OF HOSPITALS, CLINICS AND SIMILAR CENTERS FOR ALL PERS ONS IRRESPECTIVE OF RELIGION, CASTE COMMUNITY OR SOCIAL STATUS. E) TO PRINT, PUBLISH & EXHIBIT JOURNAL, PERIODICALS, BOOKS, LECTURES AND OTHER READING AND PICTORIAL MATTER FO THE DIFFUSION OF USEFUL KNOWLEDGE AND IN KEEPING WITH RELIGIOUS, CULTURAL AND MORAL IDEALS OF THE' SOCIETY. F) TO HOLD AND CONDUCT CLASSES, LECTURES, CONFERENCES SEMINARS COMPETITIONS AND TO GIVES SCHOLARSHIPS, FREESHIPS, DIPLOMAS, CERTIFICATES AND AWARDS AS AND WHEN REQUIRED BY THE NEEDY PEOPLE & UNEMPLOYED PERSONS INCLUDING DEPRIVED WOME N, WIDOWS, POOR, BELOW POVERTY LINE, & DESTITUTE TO SE CURE THEIR EMPLOYMENTS IN VARIOUS FIELDS THROUGH DIFFERENT SCH EMES ENVISAGED BY THE GOVERNMENT. G) TO PROVIDE RESIDENTIAL ACCOMMODATION, EITHER FREE O F COST OR CONSIDERATION AND TO EDUCATE, TRADITION AND ASSIST FINANCIALLY OR OTHERWISE IN THE EDUCATION AND TRAINING OF TEACHERS , STAFF, STUDENTS AND ORPHANS F THE BENEFICIAL PURPOSES OF THE SOCIETY. H) (I) TO RECEIVE CONTRIBUTE / SUBSIDY / GRANT AND ASSET FROM THE GOVERNMENT, AHBAB CO-OPERATIVE HOUSING SOCIETY LTD AND OTHERS FOR CHARITABLE PURPOSES. (II) TO RAISE FUNDS AND TO RECEIVE AND USE ANY GIFT, ZAK AT, FITRA, DONATION SUBSCRIPTIONS, CONTRIBUTIONS & ENDOWMENT IN CASH OR OTHER MOVABLE OR IMMOVABLE PROPERTY OF ALL DESCRIPT IONS AND TO UNDERTAKE AND CARRY OUT THE OFFICES, DUTIES AND FUN CTIONS OF 4 THE AHBAB BAHU UDDESHIYA EDUCATION SOCIETY TRUSTEES, MANAGERS, AND ADMINISTRATOR SOLELY OR JOI NTLY WITH OTHERS, IN RESPECT OF ANY SUCH GIFTS, DONATIONS AND FOUNDATIONS WHETHER VESTED DIRECTLY IN THE SOCIETY OR OTHERWISE . H) TO SUBSCRIBE OR GIVE DONATIONS TO AND FINANCIAL OR OTHERWISE TO ASSIST OR OTHER SOCIETY OR TRUST WITH SIMILAR OB JECTS. I) TO PURCHASE/ TAKE OVER AND/OR ADMINISTER ALL OR ANY PART OF THE MOVABLE AND IMMOVABLE ASSETS AND/OR UNREGISTERE D VESTED IN ANY PERSON OR PERSON OR BODY OR HOUSING SOCIETY AND SUCH INSTITUTION AND OR PROPERTIES TO BE MANAGED BY EH A BOVE SOCIETY. J) TO INVEST THE FUNDS OF THE SOCIETY IN WHOLE OR PART TOWARDS THE ATTAIN OF THE ABOVE OBJECTS AS LONG AS THE INST ITUTIONS ADMINISTER BY THE SO REMAIN SINGLY OR COLLECTIVELY UNDER THE MANAGEMENT OF THE SOCIETY. K) TO DO ALL SUCH 'OTHER LAWFUL ACTS AND DEEDS AS ARE ESSENTIAL OR CONDUCIVE TO THE ATTAINMENT OF THE OBJECTS OF TH E SOCIETY. L) TO FRAME THE RULES FOR CONDUCT OF EMPLOYEES. M) TO BECOME THE MEMBER OF THE AHBAB CO-OP. HOUSING SOCIETY NAGPUR-13, AND THE MEMBERSHIP WILL BE REPRE SENTED THROUGH THE PRE OR ANY OTHER MEMBER AS DESIGNATED B Y THE GOVERNING BODY OF THE SOCIETY. N) THE AHBAB BAHU UDDESHIYA EDUCATION SOCIETY IS BELON GING TO MINORITY COMMUNITY AND IT IS THE MUSLIM MINORITY INSTITUTION AND IT WILL ACCOMPLISH ITS OBJECTS BY VIRTUE OF RIG HTS OF MUSLIM MINORITY INSTITUTION IN TEH BEST INTEREST OF THE PE OPLE AS ENSHRINED UNDER ARTICLE-30 OF THE CONSTITUTION OF I NDIA. 3. DURING THE COURSE OF PROCEEDINGS BEFORE THE LEARNED COMMISSIONER OF INCOME TAX (EXEMP.), PUNE, THE ASSE SSEE WAS CALLED UPON TO FILE NECESSARY DOCUMENTS IN SUPPORT OF ITS APPLICATION FOR REGISTRATION OF TRUST / SOCIETY. ON A PERUSAL OF TH E APPLICATION FILED BY THE ASSESSEE ALONG WITH EVIDENCES, THE LEARNED COMM ISSIONER OF INCOME TAX (EXEMP.), PUNE, OBSERVED THAT TWO CLAUSE S IN PARTICULAR CLAUSE-(M) AND CLAUSE-(N) INDICATE THAT THE BENEFIT OF THE SOCIETY / 5 THE AHBAB BAHU UDDESHIYA EDUCATION SOCIETY TRUST ARE LIMITED TO THE MEMBERS OF THE AHBAB CO-OP ERATIVE SOCIETY AND THE SOCIETY IS ESTABLISHED FOR THE PURPOSE TO A CCOMPLISH ITS OBJECTS BY VIRTUE OF RIGHTS OF MUSLIM MINORITY INSTITUTION IN THE BEST INTEREST OF THE PEOPLE AS ENSHRINED UNDER ARTICLE-30 OF THE CON STITUTION OF INDIA. THE LEARNED COMMISSIONER OF INCOME TAX (EXEMP.), PU NE, FURTHER OBSERVED THAT THE PURPOSE OF THE TRUST IS TO ESTABL ISH A SCHOOL FOR CO- OPERATIVE HOUSING SOCIETY AND CLAIMING EXEMPTION WI TH RESPECT OF DONATION WHICH IS EVIDENT FROM THE FACT THAT RELEAS E DEED EXECUTED IN FAVOUR OF THE ASSESSEE CLEARLY SHOWS THAT SOCIETY I S FORMED FOR THE PURPOSE OF IMPORTING EDUCATION AMONG THE CHILDREN O F HOUSING CO- OPERATIVE SOCIETY AND, THEREFORE, IT IS EVIDENT FRO M THE FACT GATHERED DURING THE PROCEEDINGS THAT THE TRUST IS FORMED FOR THE BENEFIT OF A PARTICULAR COMMUNITY BUT NOT THE GENERAL PUBLIC AT LARGE, THEREFORE, HE OPINED THAT REGISTRATION UNDER SECTION 12A OF THE A CT CANNOT BE GRANTED TO A TRUST OR INSTITUTION WHICH IS FORMED F OR THE BENEFIT OF A PARTICULAR COMMUNITY, CASTE OR CREED OR SOCIETY AND ACCORDINGLY REJECTED APPLICATION FILED BY THE ASSESSEE UNDER SE CTION 12A OF THE ACT. 4. THE LEARNED AUTHORISED REPRESENTATIVE FOR THE ASSES SEE REFERRING TO THE MEMORANDUM OF ASSOCIATION SUBMITTED THAT NOW HERE IN THE OBJECTS OF THE SOCIETY, IT IS STATED THAT IT EXISTE D ONLY FOR A PARTICULAR COMMUNITY BUT THE OBJECT CLEARLY ESTABLISHES THE FA CT THAT THE SOCIETY IS FORMED FOR THE PURPOSE OF IMPARTING EDUCATION BY ESTABLISHING 6 THE AHBAB BAHU UDDESHIYA EDUCATION SOCIETY SCHOOLS, COLLEGES AND OTHER INSTITUTIONS FOR THE BE NEFIT OF GENERAL PUBLIC AT LARGE IRRESPECTIVE OF RELIGION, CASTE, CO MMUNITY AND CREED OR SOCIAL STATUS. THE LEARNED AUTHORISED REPRESENTATIV E FURTHER SUBMITTED THAT THE LEARNED COMMISSIONER (APPEALS) HAS INCORRE CTLY APPRAISED THE FACT BY REFERRING TO A CLAUSE WHICH DOES NOT STATE THE BENEFIT OF SOCIETY IS LIMITED TO MEMBERS OF HOUSING CO-OPERATIVE SOCIE TY AND ITS CHILDREN. THE LEARNED AUTHORISED REPRESENTATIVE FURTHER SUBMI TTED THAT EVEN THOUGH THE SOCIETY HAS THE WORDS MUSLIM MINORITY COMMUNITY IN ITS FREE AMENDED MEMORANDUM OF ASSOCIATION, BUT LATER O N, ON THE BASIS OF SUGGESTION OF THE INCOME TAX OFFICER, THE OBJECT CLAUSE HAS BEEN AMENDED SO AS TO REMOVE THE WORD MUSLIM . THE LEARNED AUTHORISED REPRESENTATIVE FURTHER SUBMITTED THAT EVEN UNDER AR TICLE-30 OF THE CONSTITUTION OF INDIA, THE MINORITY COMMUNITIES ARE ALLOWED TO SET-UP THEIR OWN EDUCATIONAL INSTITUTIONS FOR THE BENEFIT OF MINORITY COMMUNITY, THEREFORE, THE LEARNED COMMISSIONER OF I NCOME TAX (EXEMP.), PUNE, ERRED IN HOLDING THAT THE SOCIETY I S FORMED FOR THE BENEFIT OF A PARTICULAR COMMUNITY ON THE BASIS OF C ERTAIN CLAUSES IN THE MEMORANDUM OF ASSOCIATION AND RELEASE DEED, BUT FAC T REMAINS THAT THE RELEASE DEED WAS EXECUTED BY THE HOUSING SOCIET Y TO TRANSFER THE RIGHT OF PROPERTY IN FAVOUR OF THE SOCIETY TO ENABL E TO CONSTRUCT SCHOOLS AND COLLEGES FOR THE BENEFIT OF GENERAL PUBLIC INCL UDING THE MEMBERS OF HOUSING SOCIETY. HE FURTHER SUBMITTED THAT THE LEAR NED COMMISSIONER OF INCOME TAX (EXEMP.), PUNE, AT THE TIME OF REGIST RATION, IS REQUIRED 7 THE AHBAB BAHU UDDESHIYA EDUCATION SOCIETY TO LOOK INTO ITS OBJECTS AND ACTIVITIES OF THE SOCI ETY AND IF THE OBJECTS OF THE SOCIETY ARE IN CHARITABLE NATURE AND ITS ACTIVI TIES ARE CARRIED OUT IN ACCORDANCE WITH ITS OBJECTS, THEN, THERE IS NO REAS ON FOR THE COMMISSIONER TO DENY THE BENEFIT OF REGISTRATION UN DER SECTION 12A OF THE ACT. IN THIS REGARD, HE RELIED UPON THE DECISIO N OF THE HONBLE GUJARAT HIGH COURT IN CIT(E) V/S BAYATH KUTCHHI DASH A OSWAL JAIN MAHAJAN TRUST, [2016] 243 TAXMAN 60 AND THE DECISIO N OF THE TRIBUNAL, PUNE BENCH, IN DIOCESE OF PUNE (CNI) V/S CIT, [2015] 63 SOT 554 (PN.). 5. THE LEARNED DEPARTMENTAL REPRESENTATIVE, ON THE OTH ER HAND, SUPPORTING THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (EXEMP.), PUNE, SUBMITTED THAT THE FACTS GATHERED D URING THE PROCEEDINGS, CLEARLY PROVES THAT THE SOCIETY IS FOR MED FOR THE BENEFIT OF A PARTICULAR SOCIETY WHICH IS EVIDENT FROM THE FACT THAT TO GET THE BENEFIT OF THE SOCIETY, THE MEMBERSHIP OF THE HOUSI NG SOCIETY IS NECESSARILY TO BE TAKEN. THE LEARNED DEPARTMENTAL R EPRESENTATIVE FURTHER SUBMITTED THAT WHEN THE TRUST IS FORMED FOR A PARTICULAR COMMUNITY OR CASTE OR CREED, IT LOSES ITS CHARITABL E NATURE, THEREFORE, THE LEARNED COMMISSIONER OF INCOME TAX (EXEMP.), PU NE, WAS RIGHT IN REJECTING THE REGISTRATION UNDER SECTION 12A OF THE ACT. 6. HAVING CAREFULLY CONSIDERED THE RIVAL CONTENTIONS, PERUSED THE ORDERS OF THE AUTHORITIES BELOW AND THE MATERIAL PL ACED ON RECORD, WE 8 THE AHBAB BAHU UDDESHIYA EDUCATION SOCIETY FIND THAT PROVISIONS OF SECTION 12AA OF THE ACT PRE SCRIBES THE PROCEDURE FOR REGISTRATION OF TRUST / INSTITUTION. AS PER THE SAID PROVISION, THE COMMISSIONER, BEFORE REGISTRATION OF A TRUST, SHALL CALL FOR SUCH DOCUMENTS OR INFORMATION AS HE THINKS NECESSARY IN ORDER TO SATISFY HIMSELF ABOUT THE GENUINENESS OF THE ACTIVITIES OF THE TRUST OR INSTITUTION AND THE OBJECTS OF THE TRUST. IF THE OB JECTS OF THE TRUST ARE IN CHARITABLE NATURE AND ITS ACTIVITIES ARE CARRIED OU T IN ACCORDANCE WITH ITS OBJECTS, THEN, THE LEARNED COMMISSIONER OF INCO ME TAX (EXEMP.), PUNE, IS REQUIRED TO GRANT REGISTRATION UNDER SECTI ON 12A OF THE ACT. IN THIS CASE, ON A PERUSAL OF THE ORDER PASSED BY THE LEARNED COMMISSIONER OF INCOME TAX (EXEMP.), PUNE, WE FIND THAT HE HAS REJECTED REGISTRATION UNDER SECTION 12A OF THE ACT, ON THE GROUND THAT THE SOCIETY IS FORMED FOR THE BENEFIT OF A PARTICUL AR SOCIETY IRRESPECTIVE OF CASTE, COMMUNITY, CREED, ETC. THE LEARNED COMMIS SIONER OF INCOME TAX (EXEMP.), PUNE, HAS GIVEN TWO REASONS FOR REJEC TING THE APPLICATION FILED BY THE ASSESSEE. ACCORDING TO HIM , TO GET THE BENEFIT OF THE TRUST, IT IS NECESSARY TO BECOME A MEMBER OF THE CO-OPERATIVE HOUSING SOCIETY AND THE SOCIETY IS FORMED TO ACCOMP LISH ITS OBJECTS BY VIRTUE OF RIGHTS OF MUSLIM MINORITY INSTITUTION IN THE BEST INTEREST OF THE PEOPLE AS ENSHRINED UNDER ARTICLE-30 OF THE CONSTIT UTION OF INDIA. THE LEARNED COMMISSIONER OF INCOME TAX (EXEMP.), PUNE, FURTHER OPINED THAT THERE IS A CONDITION IN THE RELEASE DEED EXECU TED BY THE HOUSING SOCIETY THAT CONSIDERING THE NEED OF EDUCATION AMON G THE CHILDREN OF 9 THE AHBAB BAHU UDDESHIYA EDUCATION SOCIETY THE ABOVE CO-OPERATIVE HOUSING SOCIETY THE SOCIETY, HAS DONATED THE LAND AND PROPERTY OF THE HOUSING SOCIETY IN FAVOUR OF THE ASSESSEE. THEREFORE, HE OPINED THAT THE SOCIETY IS FORMED FOR THE BENEFIT OF A PARTICULAR COMMUNITY AND ACCORDINGLY, IT IS NOT ELI GIBLE FOR REGISTRATION UNDER SECTION 12A OF THE ACT AS PUBLIC CHARITABLE T RUST. 7. THE ACT PRESCRIBES PROCEDURE FOR REGISTRATION OF A TRUST US 12AA OF THE ACT. AT THE TIME OF REGISTRATION, THE COMMIS SIONER HAS TO SATISFY ABOUT THE OBJECTS OF THE TRUST AND ITS ACTIVITIES. IF THE OBJECTS OF THE TRUST ARE CHARITABLE IN NATURE AND ITS ACTIVITIES A RE CARRIED OUT IN ACCORDANCE WITH ITS OBJECTS, THEN THERE IS NO FURTH ER REQUIREMENT OF EXAMINATION OF OTHER ASPECTS INCLUDING APPLICATION OF OTHER PROVISIONS OF THE ACT. IN THIS CASE, ON A PERUSAL OF THE DETAI LS FILED BY THE ASSESSEE, INCLUDING ITS MEMORANDUM OF ASSOCIATION, WE FIND THAT THE OBJECTS OF THE SOCIETY ARE CHARITABLE IN NATURE AND BENEFITS OF THE SOCIETY IS FOR GENERAL PUBLIC IRRESPECTIVE OF CASTE , CREED AND SOCIAL STATUS. ALTHOUGH, THE OBJECT CLAUSE SPECIFIES THAT THE BENEFIT OF THE SOCIETY IN PARTICULAR FOR MUSLIM MINORITY COMMUNITY , THE WORD MUSLIM HAS BEEN DELETED FROM THE OBJECTS BY AMENDING ITS M EMORANDUM OF ASSOCIATION. WE FURTHER NOTICED THAT AS PER ARTICLE -30 OF THE CONSTITUTION OF INDIA, MINORITY COMMUNITIES ARE ALL OWED TO START THEIR OWN EDUCATION INSTITUTION FOR THE BENEFIT OF MINORI TY COMMUNITY. WHEN THE CONSTITUTION OF INDIA PERMITS TO ESTABLISH A TR UST OR SOCIETY FOR THE 10 THE AHBAB BAHU UDDESHIYA EDUCATION SOCIETY BENEFIT OF THE MINORITY COMMUNITY AND THE OBJECTS O F THE TRUST ARE IN CONSONANCE WITH THE CONSTITUTION OF INDIA TO PROTEC T RIGHTS OF THE MINORITY COMMUNITY AS PRIVILEGED UNDER GOVERNMENT R ULES, ORDERS AND RECOMMENDATIONS, THEN THERE IS NO REASON FOR THE LE ARNED COMMISSIONER OF INCOME TAX (EXEMP.), PUNE, TO DELAY THE BENEFIT OF REGISTRATION MERELY FOR THE REASON THAT THE TRUST / INSTITUTION IS FORMED FOR THE BENEFIT OF A PARTICULAR COMMUNITY. WE FURTH ER NOTICED THAT IN THE OBJECT CLAUSE, NOWHERE IT WAS STATED THAT THE B ENEFIT OF THE SOCIETY IS LIMITED TO A PARTICULAR COMMUNITY, MORE PARTICUL ARLY TO THE MEMBERS OF HOUSING SOCIETY. ALTHOUGH, THERE IS A CONDITION IN THE MEMORANDUM OF ASSOCIATION IN RESPECT OF MEMBERSHIP WHICH IS LI MITED TO MEMBERS OF THE HOUSING SOCIETY, BUT FOR THE PURPOSE OF REGI STRATION UNDER SECTION 12A OF THE ACT, WHAT IS REQUIRED TO BE SEEN IS THAT THE OBJECT BUT NOT THE RULES WHICH GOVERNED THE FUNCTIONING OF THE SOCIETY. IN THIS CASE, THE OBJECTS OF THE TRUST ARE CLEARLY IN THE N ATURE OF CHARITABLE AND THE ACTIVITIES OF THE TRUST ARE CARRIED OUT IN ACCO RDANCE WITH ITS OBJECTS, WHICH IS EVIDENT FROM THE FACT THAT THE ADMISSION I N SCHOOLS IS OPEN TO GENERAL PUBLIC IRRESPECTIVE OF CASTE, COMMUNITY, CR EED, AS EVIDENT FROM THE FACT THAT THE SCHOOLS HAS GIVEN ADMISSION TO VA RIOUS COMMUNITIES CHILDREN. THEREFORE, WE ARE OF THE CONSIDERED VIEW THAT THERE IS NO REASON FOR THE LEARNED COMMISSIONER OF INCOME TAX ( EXEMP.), PUNE, TO DENY THE BENEFIT OF REGISTRATION UNDER SECTION 1 2A OF THE ACT. 11 THE AHBAB BAHU UDDESHIYA EDUCATION SOCIETY 8. THE LEARNED AUTHORISED REPRESENTATIVE FOR THE ASSES SEE RELIED UPON THE DECISION OF THE HONBLE GUJARAT HIGH COURT IN BAYATH KUTCHHI DASHA OSWAL JAIN MAHAJAN TRUST (SUPRA). WE HAVE GONE THROUGH THE DECISION OF THE HONBLE GUJARAT HIGH COURT IN BAYAT H KUTCHHI DASHA OSWAL JAIN MAHAJAN TRUST (SUPRA), WHEREIN THE HONB LE COURT HAS OBSERVED THAT WHERE TRUST HAS LARGE NUMBER OF OTHER OBJECTS FOR THE BENEFIT OF GENERAL PUBLIC, APART FROM THE OBJECTS T HAT BENEFIT THE RELIGIOUS COMMUNITY, THE TRIBUNAL WAS CORRECT IN AL LOWING THE REGISTRATION UNDER SECTION 12A OF THE ACT. THE RELE VANT PORTION OF THE ORDER IS EXTRACTED BELOW:- AS NOTED, IN THE PRESENT CASE THE COMMISSIONER REF ERRED TO THE SOCIAL ACTIVITIES CLAUSE CONTAINED IN THE CONSTITUT ION OF THE TRUST TO COME TO THE CONCLUSION THAT THE OBJECTS OF THE TRUS T WERE CONFINED FOR THE BENEFIT OF A RELIGIOUS COMMUNITY. THE COURT , HOWEVER, NOTICED THAT THERE WERE LARGE NUMBER OF OTHER OBJEC TS WHICH WERE FOR THE BENEFIT OF GENERAL PUBLIC. IT IS SEEN THAT, THE COMMISSIONER FOCUSED HIS ATTEN TION TO A PARTICULAR CLAUSES OF THE OBJECTS OF THE TRUST TO C OME TO THE CONCLUSION THAT THE SAME WERE FOR THE BENEFIT OF A CERTAIN RELIGIOUS COMMUNITIES ONLY, IN THE PROCESS IGNORING VARIOUS O THER OBJECTS, FOR E.G., THE TRUST WOULD ENGAGE ITSELF IN ACTIVITIES R ELATING TO EDUCATION BY MAINTAINING AND RUNNING EDUCATION CENTERS, INFAN T SCHOOLS, PRIMARY, SECONDARY AND HIGH SCHOOLS, COLLEGES ETC., TO RUN HOSTELS, TRAINING CENTERS FOR CREATING AWARENESS IN THE COMM ON PEOPLE AND TO MAKE THE EDUCATION AVAILABLE FOR THE PUBLIC. IT WOULD ALSO ENGAGE IN IMPARTING TRAINING IN COMPUTERS. THE TRUS T WOULD ENGAGE IN DOING ALL ACTIVITIES FOR MEDICAL HELP AND TO EST ABLISH AND ADMINISTER DISPENSARIES, HOSPITALS AND LABORATORIES ETC. IT WOULD ALSO HELP THE PATIENTS BY SUPPLYING MEDICINES AND F INANCIAL ASSISTANCE. LIKEWISE THE TRUST COULD ENGAGE IN RURA L DEVELOPMENT SCHEMES. THE TRUST WOULD ENGAGE IN LITERARY AND CUL TURAL ACTIVITIES BY MAKING EFFORTS FOR THE DEVELOPMENT AND PROTECTIO N OF INDIAN CULTURE. FURTHER, IT HAD DONE ACTIVITIES SUCH AS RU NNING COW SHELTERS, TO PROVIDE FOOD, CLOTH AND FINANCIAL HELP FOR ECONOMICALLY WEAKER PERSONS, TO HELP DURING NATURAL OR OTHER CAL AMITIES, TO SERVE HUMANS AND ANIMALS ETC. [PARA 7] 12 THE AHBAB BAHU UDDESHIYA EDUCATION SOCIETY THUS, VERY PREMISE FOR THE COMMISSIONER TO COME TO THE CONCLUSION THAT THE OBJECTS OF THE TRUST WERE CONFINED FOR THE BENEFIT OF A RELIGIOUS COMMUNITY, IS INCORRECT. THEREAFTER TO SU GGEST THAT THE ACTIVITIES WERE CARRIED OUT ONLY FOR SUCH PURPOSES WOULD BE ENTERING IN THE REALM OF GRANTING EXEMPTIONS IN TERMS OF SEC TION 13, WHICH WOULD BE THE TASK OF THE ASSESSING OFFICER TO BE UN DERTAKEN AT THE TIME OF ASSESSMENT ON THE BASIS OF MATERIAL THAT MA Y BE BROUGHT ON RECORD. 9. THE HONBLE GUJARAT HIGH COURT IN CIT V/S LEUVA PAT EL SEWA SAMAJ TRUST, 221 TAXMANN 75 (GUJ.), HELD THAT QUEST ION AS TO WHETHER TRUST IS CREATED OR ESTABLISHED FOR THE BENEFIT OF ANY PARTICULAR RELIGIOUS COMMUNITY OR CASTE OR CREED WOULD BE RELEVANT ONLY WHEN INCOME OF THE TRUST IS BEING ASSESSED IN TERMS OF SECTION 11 OF THE ACT. HOWEVER, AT THE TIME OF DISPOSING OFF APPLICATION OF A TRUST , SEEKING REGISTRATION, THE COMMISSIONER HAS TO MERELY DECIDE WHETHER THE S AID TRUST HAS FULFILLED NECESSARY REQUIREMENTS OF REGISTRATION AS PROVIDED UNDER SECTION 12A OF THE ACT. 10. IN THIS VIEW OF THE MATTER AND RESPECTFULLY FOLLOWI NG THE RATIO OF THE CASE LAWS DISCUSSED ABOVE, WE ARE OF THE CONSID ERED VIEW THAT THE LEARNED COMMISSIONER OF INCOME TAX (EXEMP.), PUNE, ERRED IN REJECTING THE APPLICATION FOR REGISTRATION UNDER SE CTION 12A OF THE ACT, WHEN THE OBJECTS OF THE TRUST ARE CHARITABLE IN NAT URE AND ITS ACTIVITIES ARE CARRIED OUT IN ACCORDANCE WITH ITS OBJECT. THER EFORE, WE SET ASIDE THE ORDER OF THE LEARNED COMMISSIONER OF INCOME TAX (EXEMP.), PUNE, AND DIRECT HIM TO GRANT REGISTRATION UNDER SECTION 12A OF THE ACT. 13 THE AHBAB BAHU UDDESHIYA EDUCATION SOCIETY 11. IN THE RESULT, ASSESSEES APPEAL IS ALLOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 26.10.2018 SD/- SANDEEP GOSAIN JUDICIAL MEMBER SD/- G. MANJUNATHA ACCOUNTANT MEMBER NAGPUR, DATED: 26.10.2018 COPY OF THE ORDER FORWARDED TO : (1) THE ASSESSEE; (2) THE REVENUE; (3) THE CIT(A); (4) THE CIT, NAGPUR CITY CONCERNED; (5) THE DR, ITAT, NAGPUR; (6) GUARD FILE. TRUE COPY BY ORDER PRADEEP J. CHOWDHURY SR. PRIVATE SECRETARY (A.R./SR. P.S./P.S.) ITAT, NAGPUR