M/s. Jan Sewa Jagriti Munch Society, Sonepat V. CIT, Rohtak

ITA 4613/DEL/2014

• Counselvise Citation: 461320114 RSA 2014
• Duration Of Justice: 1 year(s) 2 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 17-11-2015
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: D
• Next Hearing Date: 02-11-2015
• Assessment Year: misc
• Appeal Filed On: 21-08-2014
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SULEKHA VERMA
• Keywords: Charitable institution
• Section: 80G; 12A; 12AA; 6; 12

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES : D : NEW DELHI BEFORE SHRI J. SUDHAKAR REDDY, AM AND SHRI KULDIP SINGH, JM ITA NOS.4613 & 4614/DEL/2014 ASSESSMENT YEARS : - NA - JAN SEWA JAGRITI MUNCH SOCIETY, 3698, SECTOR-15, SONEPAT. PAN: AABAJ3443Q VS. CIT, ROHTAK. (APPELLANT) (RESPONDENT) ASSESSEE BY : SHRI TARUN ROHATGI, CA DEPARTMENT BY : MS SULEKHA VERMA, CIT, DR DATE OF HEARING : 03.11.2015 DATE OF PRONOUNCEMENT : 17.11.2015 ORDER PER J. SUDHAKAR REDDY, AM: BOTH THESE APPEALS BY THE ASSESSEE ARE DIRECTED AG AINST THE ORDERS PASSED BY THE CIT, ROHTAK, DATED 27.6.2014, U/SS 12 AA(1)B)(II) AND ITA NOS.4613 & 4614/DEL/2014 2 80(G), RESPECTIVELY, OF THE INCOME-TAX ACT, 1961 (H EREINAFTER ALSO CALLED THE ACT). 2. ITA NO.4613/DEL/2014 IS FILED AGAINST THE ORDER OF THE CIT, ROHTAK, PASSED U/S 12AA(1)B)(II) OF THE ACT, WHEREI N THE APPLICATION OF THE ASSESSEE FILED IN FORM NO.10A, FOR REGISTRATION U/S 12AA WAS REJECTED. ITA NO.4614/DEL/2014 IS DIRECTED AGAINST THE REJECTION OF THE APPLICATION OF THE ASSESSEE FOR REGISTRATION U/S 80 (G) OF THE ACT. 3. THE ASSESSEE IS A SOCIETY REGISTERED WITH DISTRI CT REGISTRAR OF FIRMS AND SOCIETIES, SONEPAT ON 5.3.2008. THE LD.CIT REJ ECTED THE REGISTRATION FOR THE FOLLOWING REASONS:- A) THE ASSESSEE DOES NOT SATISFY THE VERY ESSENCE OF C HARITY, WHICH IS NECESSARY FOR GETTING THE STATUS OF BEING CHARITABL E AS IS REQUIRED IN VIEW OF SECTION 2(15) OF THE ACT; B) THE AO AS WELL AS THE JOINT COMMISSIONER OF INCOME- TAX HAS REPORTED THAT THE MAIN AIMS AND OBJECTS OF THE SOCI ETY IS TO PROMOTE THE INHERITED CULTURE AND FESTIVALS AND THIS DOES N OT FALL WITHIN THE AMBIT OF SECTION 2(15); ITA NOS.4613 & 4614/DEL/2014 3 C) ON PAGE NO.7 OF THE MEMORANDUM AND ARTICLES OF ASSO CIATION OF THE ASSESSEE SOCIETY, IT IS NOTICED THAT THE RESOLU TION NO., DATE OF MEETING, ETC., ARE BLANK. THUS, THE MEMORANDUM AND ARTICLES OF THE ASSESSEE SOCIETY ARE INCOMPLETE AND FRUCTUOUS, AS THE ASSESSEE FAILED TO FILE AN EXPLANATION; D) A PERUSAL OF THE INCOME & EXPENDITURE STATEMENT FOR THE FINANCIAL YEARS 2010-11, 2011-12 AND 2012-13 DEMONSTRATES THA T THE ASSESSEE SOCIETY HAS MADE HUGE EXPENDITURE ON ACCOU NT OF DUSSEHRA FESTIVAL, EKADASHI EXPENSES, HANUMAN JAYAN TI AND RELIGIOUS SOCIAL PROGRAMMES. THE EXPENDITURE AS A P ERCENTAGE OF TOTAL EXPENSES IS MORE THAN 50% AND AS THESE EXPEND ITURE INCURRED ARE FOR RELIGIOUS ACTIVITIES, IT CANNOT BE TREATED AS CHARITABLE. THUS, THE ASSESSEE IS NOT ENTITLED TO REGISTRATION; AND E) THE DISSOLUTION CLAUSE IS NOT IN ACCORDANCE WITH TH E LAW. 4. THE LD. COUNSEL FOR THE ASSESSEE MR. TARUN ROHAT GI SUBMITTED THAT: A) A PERUSAL OF THE OBJECTS DEMONSTRATES THAT THEY ARE CHARITABLE IN NATURE; ITA NOS.4613 & 4614/DEL/2014 4 B) AS THE ASSESSEE IS INCURRING EXPENDITURE TO HELP PO OR AND NEEDY AND FOR THE MARRIAGE OF POOR GIRLS AND FOR PAYING F EES OF POOR STUDENTS, AND, HENCE, THE PROVISO INTRODUCED TO SEC TION 2(15) IS NOT APPLICABLE; C) THE DISSOLUTION CLAUSE IS IN ACCORDANCE WITH LAW AS IT IS SEEN FROM THE MEMORANDUM OF ASSOCIATION; D) INCURRING EXPENDITURE FOR CONDUCTING DUSSEHRA FESTI VAL, ETC., CANNOT BE CONSIDERED AS HAVING BEEN INCURRED FOR RE LIGIOUS PURPOSES, AS IT IS FOR THE BENEFIT OF THE SOCIETY A ND AS HINDUISM IS NOT A RELIGION AND NO RESTRICTION IS PLACED ON ANY COMMUNITY OR CASTE FROM ATTENDING THESE CELEBRATIONS; AND E) THAT THE AMENDED CONSTITUTION OF THE SOCIETY IS PRE PARED AND IT WAS THE INCOMPLETE AND AN UNSIGNED COPY WHICH WAS WITH THE CIT AND THE SIGNED COPY WAS LATER MADE AVAILABLE TO THE LD. CIT WHICH WAS NOT CONSIDERED. 5. RELIANCE WAS PLACED ON THE FOLLOWING:- I. 88 ITR 354 (GUJ); II. 42 TAXMAN.COM 77 (ALL); III. 27 TAXMAN.COM 100 (NAGPUR); AND ITA NOS.4613 & 4614/DEL/2014 5 IV. 140 ITR 1 (SC); 6. THE LD. DR, ON THE OTHER HAND, SUBMITTED THAT ALL T HE PAPERS FILED BY THE ASSESSEE BY WAY OF PAPER BOOK BEFORE THE TRI BUNAL WERE NOT AVAILABLE WITH THE LD.CIT(A) AND THAT THE CERTIFICA TE GIVEN IS WRONG. HE POINTED OUT TO THE PAGE 11 OF THE PAPER BOOK AND SU BMITTED THAT THE CLAUSE OF DISSOLUTION AND DISPOSAL OF ASSETS IS AGA INST THE PROVISIONS ENABLING THE LD.CIT TO GRANT REGISTRATION U/S 12AA OF THE ACT. SHE ALSO POINTED OUT THAT THE DATES AND THE RESOLUTION NOS. WERE LEFT BLANK AND ALL THE MEMBERS OF THE ASSOCIATION SIGNED ON THESE BLAN K DATES. THUS, SHE SUBMITS THAT UNDER SUCH CONDITIONS THE CIT WAS RIGH T IN REJECTING THE APPLICATION OF THE ASSESSEE FOR REGISTRATION. REFE RRING TO THE MEMORANDUM REGISTERED ON 26 TH DAY OF JULY, 2013, SHE SUBMITTED THAT THESE PAPERS WERE NOT BEFORE THE CIT. SHE ARGUED T HAT MORE THAN 50% OF THE EXPENSES WERE MADE ON RELIGIOUS PURPOSES SUCH A S CELEBRATION OF HINDU FESTIVAL LIKE DUSSEHRA, ETC., AND UNDER SUCH FACTS REGISTRATION U/S 12A CANNOT BE GRANTED. SHE POINTED OUT THAT THE AS SESSEE HAS ADMITTED THAT IT WOULD FALL UNDER THE CATEGORY THE ADVANC EMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY SPECIFIED BY SECTION 2, SUB- ITA NOS.4613 & 4614/DEL/2014 6 SECTION (15) OF THE ACT AND NOT IN THE OTHER CATEGO RIES. SHE RELIED ON SECTION 13(1)(B) OF THE ACT AND SUBMITTED THAT THE BENEFIT U/S 11 IS TO BE DENIED IF THE TRUST OR INSTITUTION IS CREATED OR ES TABLISHED FOR THE BENEFIT OF ANY PARTICULAR RELIGIOUS COMMUNITY OR CASTE AND, HE NCE, THE CIT WAS RIGHT IN DENYING EXEMPTION. SHE RELIED ON THE JUDG MENT OF THE HONBLE SUPREME COURT IN THE CASE OF CIT, UJJAIN VS. DAWOODI BOHARA JAMAT . IN OUR VIEW, THIS DECISION IS IN FAVOUR OF THE ASSE SSEE. THE HONBLE SUPREME COURT HELD AS FOLLOWS:- ACCORDING TO SECTION 2(15), THE EXPRESSION 'CHARIT ABLE PURPOSE' HAS BEEN DEFINED BY WAY OF AN INCLUSIVE DEFINITION SO AS TO INCLUDE RELIEF TO THE POOR, EDUCATION, MEDICAL RELIEF AND ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY. A CATENA OF DECISIONS OF TH IS COURT WHICH HAVE INTERPRETED THE SAID PROVISION AND ESPECIALLY THE E XPRESSION 'ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY' HAVE OBSERVED THA T THE SAID EXPRESSION IS OF THE WIDEST CONNOTATION. THE WORD 'GENERAL' IN TH E SAID EXPRESSION MEANS PERTAINING TO A WHOLE CLASS. THEREFORE, ADVANCEMENT OF ANY OBJECT OF BENEFIT TO THE PUBLIC OR A SECTION OF THE PUBLIC AS DISTINGUISHED FROM BENEFIT TO AN INDIVIDUAL OR A GROUP OF INDIVIDUALS WOULD BE A CHARITABLE PURPOSE. THE SAID EXPRESSION WOULD PRIMA FACIE INCLUDE ALL OBJECTS WHICH PROMOTE THE WELL BEING OF THE GENERAL PUBLIC. IT CANNOT BE SAID THAT A PURPOS E WOULD CEASE TO BE CHARITABLE EVEN WHEN PUBLIC WELFARE IS INTENDED TO BE SERVED. [PARA 30] IN CERTAIN CASES, THE ACTIVITIES OF THE TRUST MAY C ONTAIN ELEMENTS OF BOTH: RELIGIOUS AND CHARITABLE AND THUS, BOTH THE PURPOSE S MAY BE OVER LAPPING. MORE SO WHEN THE RELIGIOUS ACTIVITY CARRIED ON BY A PARTICULAR SECTION OF PEOPLE WOULD BE A CHARITABLE ACTIVITY FOR OR TOWARD S OTHER MEMBERS OF THE COMMUNITY AND ALSO PUBLIC AT LARGE. FOR EXAMPLE , THE PRACTICE OF ITA NOS.4613 & 4614/DEL/2014 7 OPTIONAL CHARITY IN THE FORM OF KHAIRAT OR SADAQUAH UNDER MOHAMMADAN LAW WOULD BE COVERED UNDER BOTH CHARITABLE AS WELL AS RELIGIOUS PURPOSE. FURTHER, WHILE PROVIDING FOOD AND FODDER T O ANIMALS ESPECIALLY COW IS RELIGIOUS ACTIVITY FOR HINDUS, IT WOULD BE C HARITABLE IN RESPECT TO NON-HINDUS AS WELL. [PARA 36] UNQUESTIONABLY, OBJECTS WHICH PROVIDE FOR THE ACTIV ITIES COMPLETELY RELIGIOUS IN NATURE AND RESTRICTED TO THE SPECIFIC COMMUNITY OF THE RESPONDENT-TRUST ARE OBJECTS WITH RELIGIOUS PURPOSE ONLY. HOWEVER, IN RESPECT TO THE OTHER OBJECTS, THE FACT THAT THE SAI D OBJECTS TRACE THEIR SOURCE TO THE HOLY QURAN AND RESOLVE TO ABIDE BY TH E PATH OF GODLINESS SHOWN BY ALLAH WOULD NOT BE SUFFICIENT TO CONCLUDE THAT THE ENTIRE PURPOSE AND ACTIVITIES OF THE TRUST WOULD BE PURELY RELIGIOUS IN COLOUR. THE OBJECTS REFLECT THE INTENT OF THE TRUST AS OBSE RVANCE OF THE TENETS OF ISLAM, BUT DO NOT RESTRICT THE ACTIVITIES OF THE TR UST TO RELIGIOUS OBLIGATIONS ONLY AND FOR THE BENEFIT OF THE MEMBERS OF THE COMM UNITY. [PARA 38] THE ACTIVITY OF PROVIDING FOR FOOD ON CERTAIN SPECI FIC OCCASIONS AND OTHER RELIGIOUS AND AUSPICIOUS EVENTS OF THE DAWOODI BOHR A COMMUNITY DO NOT RESTRICT THE BENEFIT TO THE MEMBERS OF THE COMMUNIT Y. NEITHER THE RELIGIOUS TENETS NOR THE OBJECTS AS EXPRESSED LIMIT THE SERVICE OF FOOD ON THE SAID OCCASIONS ONLY TO THE MEMBERS OF THE SPECI FIC COMMUNITY. THUS, THE ACTIVITY OF NYAZ PERFORMED BY THE RESPONDENT-TR UST DOES NOT DELINEATE A SEPARATE CLASS BUT EXTENDS THE BENEFIT OF FREE SE RVICE OF FOOD TO PUBLIC AT LARGE IRRESPECTIVE OF THEIR RELIGION, CASTE OR S ECT AND THEREBY QUALIFIES AS A CHARITABLE PURPOSE WHICH WOULD ENTAIL GENERAL PUBLIC UTILITY. [PARA 39] FURTHER, ESTABLISHMENT OF MADARSA OR INSTITUTIONS T O IMPART RELIGIOUS EDUCATION TO THE MASSES WOULD QUALIFY AS A CHARITAB LE PURPOSE QUALIFYING UNDER THE HEAD OF EDUCATION UNDER THE PROVISIONS OF SECTION 2(15) OF THE ACT. THE INSTITUTIONS ESTABLISHED TO SPREAD RELIGIO US AWARENESS BY MEANS OF EDUCATION THOUGH ESTABLISHED TO PROMOTE AND FURT HER RELIGIOUS THOUGHT COULD NOT BE RESTRICTED TO RELIGIOUS PURPOSES. THE MADARSA AS A MOHOMMEDAN INSTITUTION OF TEACHING DOES NOT CONFINE INSTRUCTION TO ONLY DISSIPATION OF RELIGIOUS TEACHINGS BUT ALSO CONTRIB UTES TO THE HOLISTIC EDUCATION OF AN INDIVIDUAL. THEREFORE, IT CANNOT BE SAID THAT THE SAID OBJECT WOULD EMBODY A RESTRICTIVE PURPOSE OF RELIGI OUS ACTIVITIES ONLY. SIMILARLY, ASSISTANCE BY THE RESPONDENT-TRUST TO TH E NEEDY AND POOR FOR RELIGIOUS ACTIVITIES WOULD NOT DIVEST THE TRUST OF ITS ALTRUIST CHARACTER. ITA NOS.4613 & 4614/DEL/2014 8 [PARA 40] THEREFORE, THE OBJECTS OF THE TRUST EXHIBIT THE DUA L TENOR OF RELIGIOUS AND CHARITABLE PURPOSES AND ACTIVITIES. SECTION 11 SHEL TERS SUCH TRUST WITH COMPOSITE OBJECTS TO CLAIM EXEMPTION FROM TAX AS A RELIGIOUS AND CHARITABLE TRUST SUBJECT TO PROVISIONS OF SECTION 1 3. THE ACTIVITIES OF THE TRUST UNDER SUCH OBJECTS WOULD THEREFORE BE ENTITLE D TO EXEMPTION ACCORDINGLY. [PARA 41] FURTHER, ONE HAS TO EXAMINE THE OBJECTS UNDER THE P ROVISIONS OF SECTION 13(1)(B) OF THE ACT. IT BECOMES AMPLY CLEAR FROM TH E LANGUAGE EMPLOYED IN THE PROVISIONS THAT SECTION 13 IS IN THE NATURE OF AN EXEMPTION FROM APPLICABILITY OF SECTIONS 11 OR 12 AND THE EXAMINAT ION OF ITS APPLICABILITY WOULD ONLY ARISE AT THE STAGE OF CLAIM UNDER SECTIO NS 11 OR 12. THUS, WHERE THE INCOME OF A TRUST IS ELIGIBLE FOR E XEMPTION UNDER SECTION 11, THE ELIGIBILITY FOR CLAIMING EXEMPTION OUGHT TO BE TESTED ON THE TOUCHSTONE OF THE PROVISIONS OF SECTION 13. IN THE INSTANT CASE, IT BEING ESTABLISHED THAT THE RESPONDENT-TRUST IS A PUBLIC C HARITABLE AND RELIGIOUS TRUST ELIGIBLE FOR CLAIMING EXEMPTION UNDER SECTION 11, IT BECOMES RELEVANT TO TEST IT ON THE ANVIL OF SECTION 13. [PA RA 42] THUS, THE SECOND ISSUE WHICH ARISES FOR CONSIDERATI ON, WHETHER THE RESPONDENT-TRUST IS A CHARITABLE AND RELIGIOUS TRUS T ONLY FOR THE PURPOSES OF A PARTICULAR COMMUNITY AND THEREFORE, NOT ELIGIB LE FOR EXEMPTION UNDER SECTION 11 IN VIEW OF PROVISIONS OF SECTION 1 3(1)(B). [PARA 43] IN THE INSTANT CASE, THE TRIBUNAL HAS FOUND ON FACT S AFTER ANALYSING THE OBJECTS OF THE TRUST THAT THE RESPONDENT TRUST IS A PUBLIC RELIGIOUS TRUST AND ITS OBJECTS ARE SOLELY RELIGIOUS IN NATURE AND BEIN G OF THE OPINION THAT SECTION 13(1)(B) IS SOLELY MEANT FOR CHARITABLE TRU ST FOR PARTICULAR COMMUNITY, NEGATED THE POSSIBILITY OF APPLICABILITY OF SECTION 13(1)(B) AT THE OUTSET. THE HIGH COURT HAS ALSO CONFIRMED THE A FORESAID VIEW IN APPEAL AND OBSERVED THAT SECTION 13(1)(B) WOULD ONL Y BE APPLICABLE IN CASE OF INCOME OF THE TRUST FOR CHARITABLE PURPOSE ESTABLISHED FOR BENEFIT OF A PARTICULAR RELIGIOUS COMMUNITY. THE SAID VIEW MAY NOT BE THE CORRECT INTERPRETATION OF THE PROVISION. [PARA 44] FROM THE PHRASEOLOGY IN CLAUSE (B) OF SECTION 13(1) , IT COULD BE INFERRED THAT THE LEGISLATURE INTENDED TO INCLUDE ONLY THE T RUSTS ESTABLISHED FOR CHARITABLE PURPOSES. THAT HOWEVER DOES NOT MEAN THA T IF A TRUST IS A COMPOSITE ONE, THAT IS ONE FOR BOTH RELIGIOUS AND C HARITABLE PURPOSES, ITA NOS.4613 & 4614/DEL/2014 9 THEN IT WOULD NOT BE COVERED BY CLAUSE (B). WHAT IS INTENDED TO BE EXCLUDED FROM BEING ELIGIBLE FOR EXEMPTION UNDER SE CTION 11 IS A TRUST FOR CHARITABLE PURPOSE WHICH IS ESTABLISHED FOR THE BEN EFIT OF ANY PARTICULAR RELIGIOUS COMMUNITY OR CASTE. [PARA 45] THE TRUSTS WITH COMPOSITE OBJECTS WOULD NOT BE EXPE LLED OUT OF THE PURVIEW OF SECTION 13(1)(B) PER SE. THE SECTION REQ UIRES IT TO BE ESTABLISHED THAT SUCH CHARITABLE PURPOSE IS NOT FOR THE BENEFIT OF A PARTICULAR RELIGIOUS COMMUNITY OR CASTE. THAT IS TO SAY, IT NEEDS TO BE EXAMINED WHETHER SUCH RELIGIOUS-CHARITABLE ACTIVITY CARRIED ON BY THE TRUST ONLY BENEFITS A CERTAIN PARTICULAR RELIGIOUS COMMUNITY OR CLASS OR SERVES ACROSS THE COMMUNITIES AND FOR SOCIETY AT LA RGE. THE SECTION OF COMMUNITY SOUGHT TO BE BENEFITED MUST BE EITHER SUF FICIENTLY DEFINED OR IDENTIFIABLE BY A COMMON QUALITY OF A PUBLIC OR IMP ERSONAL NATURE. [PARA 46] IN THE PRESENT CASE, THE OBJECTS OF THE RESPONDENT TRUST ARE BASED ON RELIGIOUS TENETS UNDER QURAN ACCORDING TO RELIGIOUS FAITH OF ISLAM. AS ALREADY NOTICED THAT THE PERUSAL OF THE OBJECTS AND PURPOSES OF THE RESPONDENT-TRUST WOULD CLEARLY DEMONSTRATE THAT THE ACTIVITIES OF THE TRUST THOUGH BOTH CHARITABLE AND RELIGIOUS ARE NOT EXCLUS IVELY MEANT FOR A PARTICULAR RELIGIOUS COMMUNITY. THE OBJECTS, AS EXP LAINED IN THE PRECEDING PARAGRAPHS, DO NOT CHANNEL THE BENEFITS T O ANY COMMUNITY IF NOT THE DAWOODI BOHRA COMMUNITY AND THUS, WOULD NOT FALL UNDER THE PROVISIONS OF SECTION 13(1)(B). [PARA 49] IN THAT VIEW OF THE MATTER, IT IS HELD THAT THE RES PONDENT-TRUST IS A CHARITABLE AND RELIGIOUS TRUST WHICH DOES NOT BENEF IT ANY SPECIFIC RELIGIOUS COMMUNITY AND THEREFORE, IT CANNOT BE HEL D THAT SECTION 13(1)(B) OF THE ACT WOULD BE ATTRACTED TO THE RESPO NDENT-TRUST AND THEREBY, IT WOULD BE ELIGIBLE TO CLAIM EXEMPTION UN DER SECTION 11. [PARA 50] IN THE RESULT, THE APPEALS ARE DISMISSED. [PARA 51] 7. IN REPLY, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTE D THAT AS PER THE REQUIREMENTS OF GOVERNMENT OF HARYANA, SUBSEQUENT C HANGE IN REGULATIONS OF SOCIETIES ACT, 2012, ALL SOCIETIES W ERE REQUIRED TO RE- ITA NOS.4613 & 4614/DEL/2014 10 REGISTER THEMSELVES AND SUCH REGISTRATION HAVE TAKE N PLACE ON 5.3.2008. HE POINTED TO PAGE 40 AND 41 OF THE PAPER BOOK WHIC H CONSISTS OF A LETTER WRITTEN BY THE ASSESSEE TO THE INCOME-TAX OFFICER ( HQRS.) (VIG.), ROHTAK, WHO WAS CONDUCTING THE INQUIRIES ON BEHALF OF COMMI SSIONER OF INCOME-TAX AND POINTED OUT THAT THE NEW REGISTRATIO N CERTIFICATE ALONG WITH THE MEMORANDUM OF ASSOCIATION WAS FURNISHED. HE SUBMITTED THAT SECTION 13(1)(B) IS NOT ATTRACTED IN THIS CASE. 8. AFTER HEARING RIVAL CONTENTIONS, CONSIDERING THE PA PERS ON RECORD AND ORDERS OF THE AUTHORITIES BELOW, WE HOLD AS FOL LOWS. THE AIMS AND OBJECTS OF THE SOCIETY ARE AS FOLLOWS:- A) TO PROMOTE THE IN HERITAGE, CULTURE AND FESTIVA LS OF INDIA. B) TO HELP THE POOR, NEEDY PEOPLE IN FORM OF CASH A ND OBJECTS. C) TO HELP THE POOR CHILD IN CONTINUING THEIR STUDI ES D) TO COOPERATE AND ASSIST WITH THE OTHERS SOCIAL I NSTITUTIONS/ORGANIZATIONS HAVING THE SIMILAR AIMS AND OBJECTS. E) TO SUPPORT AND HELP THE PEOPLE AT THE TIME OF NA TURAL CALAMITIES. F) TO SET UP OLD AGE HOME FOR THE NEEDY OLD PEOPLE. ITA NOS.4613 & 4614/DEL/2014 11 G) TO ARRANGE CULTURAL PROGRAMME, SATSANG, YOGA AND RELIGIOUS PROGRAMMES FOR RECREATION AND SPIRITUALISM ENHANCEM ENT. H) TO SEEK HELP AND ASSISTANCE FROM THE GOVT STATE/ CENTRAL/LOCAL BODIES TO ACHIEVE THE ABOVE AIMS AND OBJECTS. I) TO CO-ORDINATE AND TAKE UP THE MATTER WITH GOVT. /ADMINISTRATIVE AUTHORITIES/ SIMILAR AGENCIES IN THE PUBLIC INTERES T. 9. A PERUSAL OF THE SAME DEMONSTRATES THAT THE OBJE CTS ARE CHARITABLE IN NATURE AND ENTITLED THE ASSESSEE TO REGISTRATION U/S 12A OF THE ACT. 10. THE SOCIETY WAS REQUIRED TO GET ITSELF RE-REGIS TERED IN VIEW OF THE CHANGE IN LAW IN THE STATE OF HARYANA AND, ACCORDIN GLY, IT GOT ITSELF RE- REGISTERED. THEREAFTER, THE CERTIFICATE OF REGISTR ATION ALONG WITH MEMORANDUM OF ASSOCIATION WAS FILED WITH THE DEPART MENT ALONG WITH A LETTER DATED 20.6.2014. THUS, THE SUBMISSION OF THE CIT, DR THAT THESE DOCUMENTS ARE NOT BEFORE THE CIT IS FACTUALLY INCOR RECT. 11. COMING TO THE OTHER OBJECTIONS OF THE LD.CIT FO R GRANT OF REGISTRATION, WE FIND THAT THE DISSOLUTION CLAUSE A S PER THE AMENDED REGULATIONS READS AS FOLLOWS:- ITA NOS.4613 & 4614/DEL/2014 12 3. ITS ASSETS AND LIABILITIES SHALL BE FIRST USED TO LIQUIDATE AND LIABILITIES AND THE LEFT OVER PROPERTIES/ASSETS, IF ANY SHALL B E CONSIDERED FOR TRANSFER TO ANY OTHER SOCIETY ESTABLISHED WITH IDENTICAL AIMS A ND OBJECTIVES OR TO DISTRICT COLLECTOR FOR USE THEREOF IN THE GENERAL P UBLIC INTEREST. 12. A PERUSAL OF THIS CLAUSE DEMONSTRATES THAT THE REQUIREMENT OF LAW IS FULFILLED. THUS, IN VIEW OF THE AMENDED CLAUSE, TH E REJECTION OF REGISTRATION ON THIS GROUND IS NOT VALID. REGARDIN G THE BLANK LEFT BY NOT FILLING THE RESOLUTION NO., AND DATE BY THE PROMOTE RS, WE FIND THAT IN THE LATER REGISTRATION DOCUMENTS SUCH GAPS ARE NOT THER E. THE REGISTRATION IS TO BE CONSIDERED BASED ON THE NEW MEMORANDUM WHICH IS CURRENTLY IN FORCE. THUS, THIS OBJECTION OF THE LD.CIT HAS BEEN REMOVED BY THE ASSESSEE. 13. COMING TO THE OBSERVATION THAT A MAJOR AMOUNT I S SPENT FOR RELIGIOUS PURPOSES, WE FIND THAT THE NAGPUR BENCH O F THE TRIBUNAL IN THE CASE OF SHIV MANDIR DEVSTTAN PANCH COMMITTEE SANSTAN VS. CI T-1, NAGPUR, 27 TAXMANN.COM 100 (NAGPUR - TRIB.), HAS HELD AS FOLLOWS:- HELD OBJECTS OF ASSESSEE WAS CHARITABLE IN NATURE THE DEFINITION OF CHARITABLE PURPOSE IS INCLUSI VE ONE. IT INCLUDES RELIEF OF THE POOR, EDUCATION, MEDICAL RELIEF, AND THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY. THE OBJ ECTS HELD ON BY THE ITA NOS.4613 & 4614/DEL/2014 13 ASSESSEE-TRUST ARE CHARITABLE WITHIN THE MEANING OF SECTION 2 SUB- SECTION (15). SOME OF THE OBJECTS FALL WITHIN THE ' ADVANCEMENT OF ANY OTHER OBJECT TO GENERAL PUBLIC UTILITY'. PROVISO TO SECTION 2 SUB-SECTION (15) RESTRICTS THE MEANING 'ADVANCEMENT OF ANY OTHE R OBJECTS OF GENERAL PUBLIC UTILITY'. BUT THE COMMISSIONER HAS N OT STATED THAT PROVISO TO SECTION 2 SUB-SECTION (15) IS APPLICABLE IN THE CASE OF THE ASSESSEE. [PARA 9] ASSESSEE HAD NOT VIOLATED CONDITIONS LAID DOWN IN C LAUSE (III) OF SECTION 80G(5) THE OBJECTS AS HAS BEEN POINTED OUT BY COMMISSI ONER, NOWHERE TALKS OF ADVANCEMENT, SUPPORT OR PROPAGATION OF PAR TICULAR RELIGION, WORSHIPPING OF LORD SHIVA, HANUMANJI, GODDESS DURGA AND MAINTAINING OF TEMPLE CANNOT BE REGARDED FOR THE AD VANCEMENT SUPPORT OR PROPAGATION OF A PARTICULAR RELIGION. NO EVIDENCE OR MATERIAL WAS PLACED ON RECORD WH ICH MAY PROVE THAT THESE OBJECTS RELATE TO A PARTICULAR RELIGION. NO DOUBT THE REVENUE ARGUED THAT IT RELATE TO HINDU RELIGION BUT IT IS N OT SO. LORD SHIVA, H ANUMANJI, GODDESS DURGA DOES NOT REPRESENT ANY PART ICULAR RELIGION, THEY ARE MERELY REGARDED TO BE THE SUPER POWER OF T HE UNIVERSE. [PARA 10] A RELIGION UNDOUBTEDLY HAS ITS BASIS IN A SYSTE M OF BELIEFS OR DOCTRINES WHICH ARE REGARDED BY THOSE WHO PROFESS T HAT RELIGION AS CONDUCIVE TO THEIR SPIRITUAL WELL BEING, BUT IT WIL L NOT BE CORRECT TO SAY THAT RELIGIONS IS NOTHING ELSE BUT A DOCTRINE OR BE LIEF. A RELIGION MAY NOT ONLY LAY DOWN A CODE OF ETHICAL RULES FOR ITS F OLLOWERS TO ACCEPT, BUT IT MIGHT PRESCRIBED RITUALS AND OBSERVANCES, CE REMONIES AND MODES OF WORSHIP WHICH ARE REGARDED AS INTEGRAL PAR TS OF A RELIGION, AND THESE FORMS AND OBSERVANCES MIGHT EXTEND EVEN T O MATTERS OF FOOD AND DRESS. NO MATERIAL OR EVIDENCE HAS BEEN BROUGHT ON REC ORD BY THE DEPARTMENT WHICH MAY PROVE THAT ANY PERSON COMING, WORSHIPPING AND MAINTAINING THE TEMPLE HAS TO FOLLOW A PARTICUL AR CODE OF ETHICAL RULES AND HAS TO CARRY OUT THE PRESCRIBED RITUALS A ND OBSERVANCES, CEREMONIES AND MODES OF WORSHIP. THE ENTRY IS NOT R ESTRICTED TO A PARTICULAR GROUP OF PERSONS. ANY BODY WHETHER WANT TO WORSHIP OR NOT AND WANT TO MAINTAIN OR NOT CAN COME TO THE TEMPLE AND AVAI L OF ALL THE FACILITIES AVAILABLE TO THE PUBLIC AT LARGE . ITA NOS.4613 & 4614/DEL/2014 14 THEREFORE, THESE OBJECTS CANNOT BE REGARDED TO BE THE RELIGIOUS OBJECTS. UNTIL AND UNLESS THE ACTIVITIES FOR WHICH THE TRUST IS ESTABLISHED, INVOLVE THE ACTIVITY RELIGIOUS PURPOSE , IT CANNOT BE SAID THAT THE ASSESSEE HAS NOT COMPLIED WITH THE CONDITI ON NO. (III ) ENUMERATED UNDER SECTION 80G(5). [PARA 11] EVEN ALL THE BUILDING MAINTENANCE EXPENSES, FRE E FOOD EXPENSES AND FESTIVAL, PRAYER AND DAILY EXPENSES CANNOT BE REGAR DED TO BE THE ONE INCURRED FOR RELIGIOUS OBJECT, EVEN IF THE OBJECT I S REGARDED TO BE RELIGIOUS ONE. IT IS NOT DENIED THAT IN THE BUILDIN G THE ASSESSEE WAS CARRYING YOGA CENTRE, TAILORING TRAINING CENTRE AS WELL AS FOOD FOR THE NEEDY AND OPTICAL CENTRE FOR THE POOR. [PARA 12] EXPENSES INCURRED FOR WORSHIPPING LORD SHIVA AND MA INTENANCE OF TEMPLE NOT RELIGIOUS PURPOSE COMMISSIONER MUST BE AWARE OF THAT THE HINDU CO NSISTS OF A NUMBER OF COMMUNITIES HAVING THE DIFFERENT GODS WHO ARE BEING WORSHIPPED IN A DIFFERENT MANNER, DIFFERENT RITUALS , DIFFERENT ETHICAL CODES. EVEN THE WORSHIP OF GOD IS NOT ESSENTIAL FOR A PERSON WHO HAS ADOPTED HINDUISM WAY OF LIFE. THUS, HINDUISM HOLDS WITHIN ITS FOLD MEN OF DIVERGENT VIEWS AND TRADITIONS WHO HAVE VERY LITTLE IN COMMON EXCEPT A VAGUE FAITH IN WHAT MAY BE CALLED THE FUND AMENTALS OF THE HINDUISM. THE WORD 'COMMUNITY' MEANS A SOCIETY O F PEOPLE LIVING IN THE SAME PLACE, UNDER THE SAME LAWS AND REGULATIONS AND WHO HAVE COMMON RIGHTS AND PRIVILEGES. THIS MAY APPLY TO CHR ISTIANITY OR MUSLIM BUT NOT TO HINDUISM. THEREFORE, IT CANNOT BE SAID THAT HINDU IS A SEPARATE COMMUNITY OR A SEPARATE RELIGION . TECHNICALLY HINDU IS NEITHER A RELIGION NOR A C OMMUNITY. THEREFORE, EXPENSES INCURRED FOR WORSHIPPING OF LOR D SHIVA, HANUMAN, GODDESS DURGA AND FOR MAINTENANCE OF TEMPL E CANNOT BE REGARDED TO BE FOR RELIGIOUS PURPOSE. UNDER THESE F ACTS AND CIRCUMSTANCES, THE COMMISSIONER IS NOT CORRECT IN L AW IN NOT ALLOWING THE APPROVAL TO THE ASSESSEE-TRUST UNDER SECTION 80 G . ACCORDINGLY, THE ORDER OF THE COMMISSIONER IS S ET ASIDE AND THE COMMISSIONER IS DIRECTED TO GRANT APPROVAL TO THE A SSESSEE-TRUST UNDER SECTION 80G(5)( VI ) [PARA 13] . ITA NOS.4613 & 4614/DEL/2014 15 14. THUS, INCURRING EXPENDITURE FOR CELEBRATING FES TIVALS SUCH AS DUSSEHRA, EKADASHI , ETC., CANNOT BE CONSIDERED AS SPENT FOR RELIGIOUS PURPOSES. EVEN OTHERWISE, THE HONBLE SUPREME COUR T IN THE CASE OF CIT (GUJARAT)-III VS AHMEDABAD RANA CASTE ASSOCIATI ON, 140 ITR 1 , HELD AS FOLLOWS:- PATHAK, J. THESE APPEALS BY CERTIFICATE GRANTED BY THE HIGH COURT OF GUJARAT ARE DIRECTED AGAINST THE JUDGMENT OF THE HIGH COURT DELIVERED ON JUNE 29/30, 1972, ON THE APPLICA TION OF S. 4(3)( I ) OF THE INDIAN I.T. ACT, 1922, AND S. 11 OF THE I.T. ACT, 1961. THE ASSESSMENT YEARS INVOLVED ARE 1960-61, 1961-62 AND 1962-63 (THE CORRESPONDING ACCOUNTING PERIODS BEING THE FIN ANCIAL YEARS ENDING MARCH 31, 1960, MARCH 31, 1961, AND MARCH 31 , 1962 RESPECTIVELY). THE ITO HELD THAT THE RESPONDENT WAS NOT ENTITLED TO THE BENEFIT UNDER S. 4(3)( I ) OF THE ACT OF 1922 IN RESPECT OF THE FIRST TWO ASSESSMENT YEARS AND UNDER S. 11 FOR THE ASSESS MENT YEAR 1962- 63. THE ITO PROCEEDED ON THE VIEW THAT THE OBJECTS FOR WHICH THE RESPONDENT ASSOCIATION WAS CONSTITUTED CONTAINED CE RTAIN CLAUSES WHICH PERMITTED THE RESPONDENT TO APPLY THE INCOME TO PURPOSES WHICH WERE NOT WHOLLY CHARITABLE. THE AAC MAINTAINE D THE ORDER OF THE ITO. BUT THE INCOME-TAX APPELLATE TRIBUNAL T OOK AN ENTIRELY CONTRARY VIEW AND HELD THAT THE RESPONDENT WAS ENTI TLED TO THE EXEMPTION CLAIMED BY IT. UPON A REFERENCE MADE AT T HE INSTANCE OF THE COMMISSIONER OF INCOME-TAX, GUJARAT, THE APPELL ATE TRIBUNAL REFERRED THE FOLLOWING QUESTION FOR THE OPINION OF THE HIGH COURT: 'WHETHER, ON THE FACTS AND IN THE CIRCUMSTANCES OF THE CASE, THE INCOME OF THE ASSESSEE-TRUST IS EXEMPT UNDER S. 4(3 )( I ) OF THE INDIAN I.T, ACT, 1922, AND S. 11 OF THE I.T. ACT, 1961?' BEFORE THE HIGH COURT THE CONTROVERSY CENTRED AROUN D SUB-CLS. (4) AND (5) OF CL. 3 OF THE MEMORANDUM OF ASSOCIATION O F THE RESPONDENT-ASSOCIATION AS WELL AS SUB-CL. (4) OF CL . 8. THE HIGH ITA NOS.4613 & 4614/DEL/2014 16 COURT AFTER CONSIDERING THE ENTIRE MATTER AT LENGTH IN THE LIGHT OF THE PREVAILING CASE LAW HAS FOUND THAT THE OBJECTS SUFF ICIENTLY CONTROL THE APPLICATION OF THE INCOME DERIVED BY THE RESPON DENT-ASSOCIATION TO PURPOSES WHICH CAN BE DESCRIBED AS ENTIRELY RELI GIOUS AND CHARITABLE. AFTER HEARING THE LEARNED COUNSEL FOR THE PARTIES W E SEE NO REASON FOR INTERFERING WITH THE JUDGMENT OF THE HIGH COURT . THE APPEALS ARE DISMISSED. COSTS IN ONE SET. APPEALS DISMISSED. 15. THE HONBLE ALLAHABAD HIGH COURT IN THE CASE OF CIT-II, AGRA VS. SRI RADHA RAMAN NIWAS TRUST (2014) 42 TAXMANN.COM 7 7 (ALLAHABAD ), AT PARA 8, HELD AS FOLLOWS:- 8. ON THE QUESTION OF SCOPE OF ENQUIRY BY CIT UNDER S ECTION 18G (5) (VI) THE TRIBUNAL RELIED ON RADHASOAMI SATSANG V. CIT [1992] 193 ITR 321/60 TAXMAN 248 AND SONEPAT HINDU EDUCATIONAL & CHARITABLE SOCIETY V. CIT [2005] 278 ITR 262/147 TAXMAN 1 (PUNJ. & HAR.) , AND RECORDED FINDING AS FOLLOWS: 'WE FIND THAT AT THE TIME OF GRANTING THE REGISTRAT ION UNDER SECTION 12AA, THE COMMISSIONER HAS LIMITED POWER ONLY TO EXAMINE OBJECTS OF THE TRUST AND GENUINENESS OF THE ACTIVITIES. THE LAW REQUIRES THA T HE SHOULD PASS A SPEAKING ORDER. IN THE CASE UNDER CONSIDERATION, WE NOTICE THAT THE ASSESSEE HAS FURN ISHED ALL THE REQUIRED DETAILS BEFORE THE CIT. AS REGARDS THE OBJECTS OF THE TRUST; WE NOTICE THAT THESE ARE CHAR ITABLE OBJECTS IN ACCORDANCE WITH SECTION 2 (15) OF THE AC T. TO CARRY SEWA PUJA OF SRI GIRDHARI JI AND CARRY AKHAND NAAM SANKIRTAN UNINTERRUPTEDLY IN AASHRAM IS ONE TY PE OF MEDITATION AND YOGA. THE TRUST CARRIES SUCH MEDI TATION AND YOGA SINCE ITS INCEPTION, MORE THAN LAST 50 YEA RS. SUCH TYPES OF MEDITATION ACCEPTED NOT ONLY IN INDIA BUT ITA NOS.4613 & 4614/DEL/2014 17 ARE ACCEPTED IN WESTERN COUNTRY ALSO AS A GREAT SOU RCE FOR PHYSICAL AND MENTAL HEALTH AND SPIRITUAL ATTAINMENT . WHEN A LARGE NUMBER OF PEOPLE FEEL THAT MEDITATION IS A GREAT SOURCE FOR PHYSICAL, MENTAL AND SPIRITUAL WELL BEIN G, IT MUST BE HELD THAT THESE ACTIVITIES ARE FOR THE ADVA NCEMENT OF GENERAL PUBLIC UTILITY. MAINTAINING SAMADHI OF G URU IS ALSO CHARITABLE PURPOSE IN ACCORDANCE WITH SECTION 2 (15) O THE ACT AND POOJA OF SUCH SAMADHI REMINDS PEOPLE OF IDEOLOGY OF GURU, IN WHOSE MEMORY POOJA IS CARRIED OUT. ORGANIZING BHANDARA IS AN ACTIVITY OF PROVIDING FOO DS TO PERSONS IRRESPECTIVE OF ANY COST OR RELIGIOUS. SUCH BHANDARA ACTIVITIES ARE LIKE DAY MEAL FOOD SCHEME O F THE GOVERNMENT. WHEN THE GOVERNMENT IS RUNNING SUCH SCHEME, UNDER THOSE CIRCUMSTANCES, IT CANNOT BE SAI D THAT OBJECTS OF THE TRUST ARE NOT CHARITABLE. RUNNING GA USHALA, PIAAU AND PROVIDING DANA TO BIRDS IS ALSO CHARITABL E ACTIVITIES. THE ASSESSEE DISCHARGED THE BURDEN IN T HIS REGARD BY FURNISHING ALL NECESSARY DETAILS OF COPY OF TRUST DEED POINTING OUT VARIOUS CHARITABLE OBJECTS OF THE TRUST AND EXPENDITURES INCURRED ON CHARITABLE ACTIVITIES. ' 16. IN THE CASE IN OUR HAND, THE ASSESSEES CHARITA BLE ACTIVITIES ARE NOT RESTRICTED TO ANY PARTICULAR CASTE OR SECTION OF SO CIETY. IN ADDITION TO CELEBRATING DUSSEHRA AND EKADASHI FESTIVALS WHICH ARE TO PROMOTE THE HERITAGE, CULTURE AND FESTIVALS OF INDIA, IT IS ALS O ENGAGED IN THE ACTIVITY OF HELPING THE POOR AND NEEDY. IT ALSO INCURS EXPEN DITURE FOR MARRIAGE OF POOR GIRLS AND PAYS FEES OF POOR STUDENTS. IT IS NO T THE CASE OF THE LD.CIT THAT THE ASSESSEE HAS INCURRED EXPENDITURE OTHER TH AN FOR PROMOTION OF THE OBJECTS OF THE SOCIETY. UNDER THESE CIRCUMSTANC ES, WE ARE OF THE CONSIDERED OPINION THAT REGISTRATION U/S 12AA SHOUL D BE GRANTED TO THE ITA NOS.4613 & 4614/DEL/2014 18 ASSESSEE SOCIETY. THUS, WE DIRECT THE LD.CIT TO GR ANT REGISTRATION TO THE SOCIETY U/S 12A OF THE ACT. FOR THE VERY SAME REAS ON, RECOGNITION U/S 80G SHOULD ALSO BE GRANTED TO THE SOCIETY. THE APP ROVAL U/S 80G(5)(VI) SHOULD BE GRANTED TO THE ASSESSEE. HENCE, WE DIREC T THE LD.CIT ACCORDINGLY. 17. IN THE RESULT, BOTH THE APPEALS OF THE ASSESSEE ARE ALLOWED. THE ORDER PRONOUNCED IN THE OPEN COURT ON 17.11.201 5. SD/- SD/- [KULDIP SINGH] [J. SUDHAKAR REDDY] JUDICIAL MEMBER ACCOUNTANT MEMBER DATED, 17 TH NOVEMBER, 2015. DK COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT (A) 5. DR, ITAT AR, ITAT, NEW DELHI.