Bhagwan Shree Laxmi Narain Dham Trust, Delhi V. ITO (E), Delhi

ITA 5812/DEL/2012

• Counselvise Citation: 581220114 RSA 2012
• Duration Of Justice: 1 year(s) 9 month(s) 3 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-08-2014
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Assessment Year: 2009-2010
• Appeal Filed On: 16-11-2012
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: Y KAKKAR
• Keywords: Gift; Charitable institution; Question of law
• Section: 143(3); 142(1); 80G; 12A; 12AA; 10

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: A NEW DELHI BEFORE SMT DIVA SINGH, JUDICIAL MEMBER AND SHRI T.S.KAPOOR, ACCOUNTANT MEMBER I.T.A .NO.-5812/DEL/2012 (ASSESSMENT YEAR- 2009-10) BHAGWAN SHREE LAXMI NARAIN, DHAM TRUST, 5/120, SANT NIRANKARI COLONY, DELHI-110009. PAN-AAATB6065A (APPELLANT) VS ITO(E), TRUST WARD-III, DELHI (RESPONDENT) APPELLANT BY SH.YOGESH KUMAR JAGIA, ADV. RESPONDENT BY Y.KAKKAR, DR ORDER PER DIVA SINGH THIS IS AN APPEAL FILED BY THE ASSESSEE AGAINST THE ORDER DATED 03.09.2012 OF THE CIT(A)-XXI, NEW DELHI PERTAINING TO 2009-10 ASS ESSMENT YEAR ON THE FOLLOWING GROUNDS:- 1. THAT THE ORDER IS AGAINST FACTS AND LAW AND IS BAS ED ON WRONG INTERPRETATIONS OF LAW AND FACTS HENCE IS LIABLE TO BE STRUCK DOWN. 2. THE ADDITION OF RS.27,25,306/- IS AGAINST FACTS AND LAW AND IS BASED ON ASSUMPTIONS AND CONJECTURES AND BASED ON CONCLUSION S EXTRANEOUS TO THE ISSUE INVOLVED AND THE LAW ON THE POINT. 3. THE LEARNED CIT(APPEALS), IN FORMATION OF HIS OPINI ON AND IN PREPARATION OF THE APPEAL ORDER, HAS NOT PASSED ANY SPEAKING OR DER ON THE REPRESENTATIONS AND SUBMISSIONS OF THE ASSESSEE. 4. THAT THE ASSESSEE TRUST IN FACT CARRIES ON RELIGIOU S ACTIVITIES, AND THAT THE IMPUGNED ORDER CONCLUDING THAT THE ASSESSEE IS CARR YING ON ACTIVITIES OF SPIRITUAL NATURE IS AGAINST THE INTERPRETATION OF L AW ADOPTED BY SEVERAL COURTS INCLUDING THE APEX COURT. 5. THAT SECTION 115BBC HAS NO APPLICABILITY ON THE ASS ESSEE, AS THE PRE- REQUISITES FOR APPLICABILITY OF THE SAID SECTION AR E NOT FULFILLED IN THE CASE OF THE ASSESSEE. 2 I.T.A .NO.-5812/DEL/2012 6. THE CALCULATION OF TAX AND INTEREST IS WRONG. 7. THAT THE APPELLANT PRAYS FOR LEAVE, TO ADD, ALTER, AMEND OR VARY ANY OF THE GROUNDS EITHER BEFORE OR AT THE TIME OF HEARING OF THE APPEALS. 2. THE RELEVANT FACTS OF THE CASE AS APPEARING FROM THE ASSESSMENT ORDER ARE THAT THE ASSESSEE RETURNED NIL INCOME BY WAY OF ITS RETURN FILED ON 29.09.2009 ACCOMPANIED BY AUDIT REPORT IN FORM NO-10B ALONGWIT H BALANCE SHEET, INCOME AND EXPENDITURE ACCOUNT ETC. THE SAME WAS PROCESSED U/S 143(1) AND SUBSEQUENTLY SELECTED FOR SCRUTINY BY NOTICE U/S 14 3(2) AND 142(1) ETC. THE FACTS OF THE ASSESSEES CASE ARE DISCUSSED BY THE ASS ESSING OFFICER IN THE FOLLOWING MANNER :- THE ASSESSEE WAS ACCORDED REGISTRATION U/S 12A VID E LETTER NO.DIT(E) 2005- 06/B-1080/04/207 DATED 20.05.2005 ISSUED BY THE DEP ARTMENT. DURING THE YEAR, THE ASSESSEE WAS MAINLY INVOLVED IN IMPARTING OF SPIRITUAL EDUCATION THROUGH THE LECTURES/SAMAGAM DELIVERED BY BRAHAMRIS HI SHREE KUMAR SWAMI JI AND IN DISTRIBUTION OF MEDICINES AND CLOTHS TO T HE NEEDY AND DESTITUTE. THUS, THE ASSESSEE IS FALLING WITHIN THE SCOPE OF GENERA L PUBLIC UTILITY. IN THE RELEVANT PERIOD 2008-09, THE ASSESSEE IS IN RECEIPT OF RS.5,28,84,204/- BY WAY OF DONATIONS. THE ASSESSEE WAS ASKED TO FIL E THE DETAILS WITH REGARD TO NAME, ADDRESS OF THE PERSONS FROM WHOM DONATIONS HA S RECEIVED AND MODE OF RECEIPT AS TO JUSTIFY THE CLAIM. BUT THE ASSESSEE COULD PROVIDED DETAIL IN RESPECT OF RS.5,01,588,98/- ONLY AND THUS LEAVING T HE AMOUNT OF RS.27,25,306/- IN THE DARK. VIDE ORDER SHEET ENTRY DATED 16.12.20 11 AND 19.12.2011, THE ASSESSEE WAS AGAIN REQUESTED TO FILE THE DETAIL OF DONATION RECEIVED SPECIFICALLY OF REMAINING AMOUNT OF RS.27,25,306/-. IT IS NOTICED THAT INSPITE OF REPEATED REQUESTS, THE ASSESSEE HAS FAILED TO PROVI DE THE DETAIL OF REMAINING AMOUNT OF RS.27,25,306/- BEING CLAIMED AS DONATION. 2.1. SINCE THE ASSESSEE FAILED TO PROVIDE DETAILS O F THE DONATION OF RS.27,25,306/- THE AO INVOKING SECTION 115BBC OF THE INCOME TAX AC T, 1961 AND PROCEEDED TO MAKE AN ADDITION OF SAID AMOUNT IN THE FOLLOWING MA NNER:- SEC. 115BBC OF THE I.T.ACT, 1961 DEALS WITH THE TR EATMENT OF ANONYMOUS DONATIONS TO BE TAXED IN CERTAIN CASE. THE RELEVAN T PORTION OF THE SEC. 115BBC IS REPRODUCED HEREUNDER:- SECTION 115BBC-(1) WHERE THE TOTAL INCOME OF AN ASS ESSEE, BEING A PERSON IN RECEIPT OF INCOME ON BEHALF OF ANY UNIVERSITY OR OT HER EDUCATIONAL INSTITUTION REFERRED TO IN SUB CLAUSE (IIIAD) OR SUB CLAUSE (VI ) OR ANY HOSPITAL OR OTHER INSTITUTION REFERRED TO IN SUB CLAUSE (IIIAE) OR SU B CLAUSE (VIA) OR ANY FUND OR 3 I.T.A .NO.-5812/DEL/2012 INSTITUTION REFERRED TO IN SUB CLAUSE (IV) OR ANY T RUST OR INSTITUTION REFERRED TO IN SUB CLAUSE (V) OF CLAUSE (23C) OF SECTION 10 OR ANY TRUST OR INSTITUTION REFERRED TO IN SECTION 11, INCLUDES ANY INCOME BY WAY OF ANY AN ONYMOUS DONATION, THE INCOME TAX PAYABLE SHALL BE AGGREGATE OF :- (I) THE AMOUNT OF THE INCOME TAX CALCULATED ON THE INCO ME BY WAY OF ANY ANONYMOUS DONATION, AT THE RATE OF THIRTY PER CENT AND (II) THE AMOUNT OF INCOME TAX WITH WHICH THE ASSESSEE WO ULD HAVE BEEN CHARGEABLE HAD HIS TOTAL INCOME BEEN REDUCED BY THE AMOUNT OF INCOME REFERRED TO CLAUSE (I). THE ASSESSEE IS A TRUST SET UP FOR IMPARTING EDUCAT ION IN THE SPIRITUAL FIELD. IT IS NOTICED THAT THE LEGISLATURE HAS EXEM PT WHOLLY PUBLIC RELIGIOUS TRUST FROM THE PROVISION OF SEC. 115BBC OF THE ACT. THE CASE OF THE ASSESSEE IS NOT OF PUBLIC RELIGIOUS TRUST BUT A CAS E OF SPIRITUAL ORGANIZATION. THEREFORE THE CASE OF THE ASSESSEE I S CLEARLY HIT BY THE PROVISION OF SEC. 115BBC OF THE I.T.ACT. 1961. THE DONATION OF RS.27,25,306/- IS TREATED AS ANONYMOUS DONATIONS AN D ACCORDINGLY IS BROUGHT TO TAX AS PER THE PROVISION OF SEC. 115BBC( 1)(I) OF THE I.T.ACT, 1961. SINCE THE ASSESSEE HAS FURNISHED INACCURATE PARTICULARS OF ITS INCOME, PENALTY PROCEEDINGS U/S 271(1)(C) ARE BEING INITIATED SEPARATELY. 3. AGGRIEVED BY THIS THE ASSESSEE WENT IN APPEAL BE FORE THE FIRST APPELLATE AUTHORITY. BEFORE WHOM THE FOLLOWING SUBMISSIONS W ERE MADE:- 2. FACTS THAT THE ASSESSEE TRUST WAS SET UP ON 30 TH DECEMBER, 2002 TO CARRY OUT VARIOUS CHARITABLE/ SPIRITUAL/ RELIGIOUS OBJECTS AS SET OUT IN THE TRUST DEED. THE TRUST DURING THE YEAR UNDER APPEAL WAS MAINLY INVOL VED IN THE FOLLOWING ACTIVITIES: A. IMPARTING OF SPIRITUAL EDUCATION TO THE POOR AND MASSES OF ALL CASTES, RELIGION AND CREED FOR UPLIFTMENT OF MANKIND. B HELPING IN ORGANISING SAMAGAMS WITH BLESSINGS OF BRAHAMRISHI SHREE KUMAR SWAMIJI WHEREIN HE DELIVERS COSMIC GRACE BY H IS PRESENCE FOR PHYSICAL, MENTAL. FINANCIAL, FAMILY AND PSYCHOLOGICAL PROBLEM S OF POOR AND MASSES OF ALL CASTES, RELIGION AND CREED. HE HAS BEEN UNCOVERING SUCH DIVINE SECRETS AT SUCH SAMAGAMS, WHICH HAVE CHANGED THE LIFE OF MILLIONS OF PEOPLE. NUMEROUS POOR PEOPLE SUFFERING FROM PAIN, DEADLY DISEASES, PROBLEMS AND CELESTIAL FAULTS HAVE GOT NE W LIFE BY JUST THEIR PHYSICAL PRESENCE AT SUCH SAMAGAMS WHEN MODERN SCIENCE AND E QUIPMENTS COULD NOT CURE THEM. C. DISTRIBUTION OF FREE MEDICINES AND CLOTH TO THE NEEDY AND DESTITUTE. D. PROVISION OF FREE AMBULANCE SERVICE FOR NEEDY AND DESTITUTE PATIENTS. 4 I.T.A .NO.-5812/DEL/2012 THE ABOVE SAID ACTIVITIES ARE DULY COVERED IN THE O BJECT CLAUSE OF THE ASSESSEE TRUST. COPIES OF ORIGINAL AND SUPPLEMENTARY TRUST D EEDS ARE ENCLOSED HEREWITH AS ANNEXURE 'A '. THE ACTIVITIES CARRIED ON BY THE ASSESSEE TRUST DURING THE YEAR UNDER APPEAL MENTIONED IN S. NO. (A) AND (B) ABOVE WERE SUBSTANT IALLY OF RELIGIOUS /SPIRITUAL NATURE. WE WOULD LIKE TO BRING TO YOUR HONOURS KIND NOTICE THAT DURING ALL SAMAGAMS CONDUCTED BY THE ASSESSEE TRUST THERE IS WORSHIP OF GOD BY MAHAMANDLESHWAR BRAHAMRISHI SHREE KUMAR SWAMIJI IN PRESENCE OF PUBL IC AT LARGE OF DIFFERENT RELIGIONS, CASTE AND CREED FOLLOWED BY SPIRITUAL. R ELIGIOUS LECTURES. SWAMI JI DURING DISCOURSE OF HIS SPIRITUAL LECTURES AND DURI NG SAMAGAMS IMPARTS KNOWLEDGE ABOUT RELIGIOUS VALUES. THERE IS ALSO DIS COURSE ON VARIOUS HOLY SCRIPTURES INCLUDING SCRIPTURES LIKE MAHARABHARATA, RAMAYANA, GEETA ETC. RELIGIOUS/SPIRITUAL LECTURES ARE IMPARTED BY SWAMI JI WHO IS A MAHAMANDLESHWAR. (OR MAHA MANDALESHWAR) IS A TITLE USED BY SOME HINDU MONKS OF THE DASHANAMI ORDER OF RENUNCIATES ('SWAMI S''') FOUNDED BY SHANKARACHARYA. A PERSON CALLED MAHAMANDALESHWAR HAS BEEN ELEVATED BY HIS PEERS TO THE HIGHEST LEVEL OF TRADI TIONAL, HINDU SPIRITUAL GUARDIANSHIP, TODAY INDIA HAS AROUND 80 MAHAMANDALE SHWARS WHO CARRY ON THE WORK BEGUN BY ADI SHANKARACHARYA 1200 YEARS AGO . LITERALLY, 'MAHAMANDALESHWAR' MEANS 'SUPERIOR OF GR EAT AND/OR NUMEROUS MONASTERIES' OR 'SUPERIOR OF A RELIGIOUS DISTRICT O R PROVINCE' (MAHA = GREAT, MANDALA = DISTRICT, ISHWARA =HEAD, SOVEREIGN). THERE ARE TWO SYSTEMS OF ORGANIZATION IN THE DASHANAMI ORDER. EACH OF THE TE N NAMES (DASHA = TEN, NAMI = NAME), WHICH IS APPENDED TO A MONK'S GIVEN NAME AT INITIATION, IS ASSIGNED TO ONE OF THE FOUR CARDINAL MONASTIC SEATS FOUNDED BY SHANKARACHARYA AND PRESIDED OVER BY HIS DIRECT SUCCESORS AT JOSHIMATH IN NORTH INDIA, DWARKA IN THE WEST, SHRINGERI IN THE SOUTH AND PURI IN THE EAST. THE OTHER SYSTEM IS THE AKHARA SYSTEM OF WHICH THE MAHAMUNDALESHWARAS ARE A PART. THEIR ORIGIN DATES FROM THE EARLY DAYS OF ISLAMIC INVASIONS INTO INDIA (AROUND OR JUST PRIOR TO 1000 CE) WHEN MANY MONKS B ECAME THE TARGETS OF MURDEROUS ATTACKS. IN ORDER TO PROTECT THEMSELVES, THEY FORMED 'REGIMENTS' OF MONK-WARRIORS WHO, TO THIS DAY, PRESERVE THE TRADIT IONAL MARTIAL ARTS OF INDIA IN ADDITION TO THEIR SPIRITUAL PRACTICES. SO IN ADDITI ON TO BEING A WAY TO ORGANIZE THE ORDERS AT A LOCAL LEVEL THEY HAVE HISTORICALLY ALSO SERVED AS PARAMILITARY REGIMENTS WITH THE MAHAMANDALESHWARAS AS GENERALS, AS IT WERE, OF THESE REGIMENTS. 5 I.T.A .NO.-5812/DEL/2012 SINCE MAJOR PART OF THE ACTIVITIES ACTUALLY CARRIED OUT BY THE ASSESSEE TRUST DURING THE YEAR UNDER CONSIDERATION WERE OF RELIGIO US/ SPIRITUAL NATURE, NO RECOGNITION U/S 80G WAS OBTAINED BY THE TRUST. 4. NOT CONVINCED WITH THE EXPLANATION THE CIT(A) CO NFIRMED THE ACTION OF THE AO. 5. AGGRIEVED BY THIS THE ASSESSEE IS IN APPEAL BEFO RE THE TRIBUNAL. 6. LD. AR REFERRING TO THE FACTS OF THE CASE SUBMI TTED THAT THE ASSESSEE TRUST IS COVERED WITHIN THE EXCEPTION CARVED OUT IN SUB-SECT ION (2) OF SECTION 115BBC OF THE INCOME TAX ACT, 1961. RELIANCE WAS PLACED UPON VARIOUS ORDERS AND DECISIONS OF DIFFERENT TRIBUNALS AND COURTS, ON THE BASIS OF WHICH IT WAS CONTENDED THAT THE ASSESSEE TRUST IS A CHARITABLE AND RELIGIOUS TRUST ACCORDINGLY PROVISIONS OF SECTION 115BBC ARE NOT APPLICABLE. IT WAS SUBMITTED THAT T HE CIT(A) CONSIDERING THE SAID SECTION AND THE BOARDS CIRCULAR NO.14 OF 2006 DATE D 28.12.2006 [288 ITR-ST.9] WHICH WAS EXTRACTED BY HIM IN HIS ORDER HAS COME TO A WRONG CONCLUSION. REFERRING TO THE SYNOPSIS FILED OVER AND ABOVE THE PAPER BOOK FILED EARLIER RELIANCE WAS PLACED ON UJJAIN VS M/S DAWOODI BOHARA JAMAT CA 2492 OF 2014 (PLACED IN PAPER BOOK CONSISTING OF SYNOPSIS AT PAGES 44-82) A ND RASHMI METALICS LTD. & ANOTHER VS CALCUTTA METROPOLITAN DEVELOPMENT AUTHOR ITY & OTHERS (2013) 10 SCC 95 (COPY AT PAGES 83-99 OF THE PAPER BOOK). RE FERRING TO UNNUMBERED PAGE 2 OF THE ASSESSMENT ORDER, IT WAS SUBMITTED THAT THE AO HAS GIVEN A FINDING AFTER EXAMINING THE ACTIVITIES OF THE TRUST IN HIS ORDER PASSED U/S 143(3) THAT THE ASSESSEE FALLS WITHIN THE SCOPE OF GENERAL PUBLIC UTILITY AND DESPITE THAT HAS MIS-APPLIED SECTION 115BBC WHICH WAS RECENTLY INSERTED W.E.F.01 .04.2007 HOLDING THAT THE ASSESSEE IS NOT A PUBLIC RELIGIOUS PLACE BUT A SPIR ITUAL RELIGIOUS ORGANIZATION. THE SAID FINDING IT WAS SUBMITTED IS CONTRARY TO THE FA CTS OF THE CASE AND THE INTENTION OF THE LEGISLATURE. INVITING ATTENTION TO SECTION 115 BBC IT WAS HIS SUBMISSION THAT A CAREFUL READING OF THE ENTIRE SECTION ALONGWITH THE SUB-SECTION (2) AND THE PROVISO 6 I.T.A .NO.-5812/DEL/2012 THERETO WOULD ADDRESS THE FACT THAT THE INTENTION O F THE LEGISLATURE WAS ONLY TO DISALLOW ANONYMOUS DONATION WHICH HAD BEEN RECEIVED IN THE CASE OF EDUCATIONAL INSTITUTIONS, HOSPITALS ETC. WHEREIN ANONYMOUS DONA TIONS HAD BEEN RECEIVED SPECIFICALLY WITH THE DIRECTION IN REGARD TO ITS AP PLICATION. IN THE FACTS OF THE PRESENT CASE IT WAS HIS SUBMISSION THAT ANONYMOUS D ONATION ACTUALLY CONSTITUTES THE VOLUNTARY DONATION MADE BY VARIOUS PEOPLE WHO ATTEN DED THE LECTURES/DISCOURSE ON SPIRITUALISM WHICH WERE HELD BY THE BRAHAMRISHI SHREE KUMAR SWAMIJI WHEREIN AIM WAS TO PROVIDE HOPE AND SUCCOR TO THE DEPRESSED AND DISTURBED BY THE TEACHINGS FROM THE BHAGWAD GITA, GURU GRANTH SAHIB, HOLY QURAN & THE BIBLE. ATTENTION WAS INVITED TO PAGES 26-43 OF THE PAPER B OOK WHICH WERE TRANSCRIPTS OF SOME OF THE SPIRITUAL LECTURES DELIVERED BY THE SAI D SWAMIJI TO THE PUBLIC AT LARGE. REFERRING THIS MATERIAL IT WAS SUBMITTED THE DOUBTS PREVAILING IN THE MINDS OF THE AO AND CIT(A) IN REGARD TO WHAT IS SPIRITUAL IS EXP LAINED BY RELYING UPON VARIOUS RELIGIOUS TEXTS AND THE DISCOURSES THEREON. IT WAS CONTENDED THAT IT IS A WELL- ACCEPTED FACT THAT WHATEVER MAY BE THE RELIGION SP IRITUALISM CANNOT BE WEEDED OUT FROM IT. THE FOLLOWING SUBMISSIONS EXTRACTED FROM THE SYNOPSIS FILED WERE HEAVILY RELIED UPON:- 'INCOME OF WHOLLY CHARITABLE OR RELIGIOUS TRUSTS OR INSTITUTIONS OR PARTLY CHARITABLE OR RELIGIOUS TRUSTS OR INSTITU TIONS IS EXEMPT UNDER THE INCOME-TAX ACT SUBJECT TO FULFILLMENT OF CERTAIN CONDITIONS. IN ORDER TO TAX UNACCOUNTED MONEY BEING CONTRIBUTED TO THESE INSTITUTIONS BY WAY OF ANONYMOUS DONATIONS, IT IS P ROPOSED TO INSERT A NEW SECTION 115BBC SO AS TO PROVIDE THAT ANY INCOME BY WAY OF ANONYMOUS DONATIONS OF THE ENTITIES REFERRED TO IN THAT SECTION SHALL BE INCLUDED IN THE TOTAL INCOME AND TAXED AT THE RATE OF 30 PER CENT. ANONYMOUS DONATIONS RECEIVED BY THE FOLLOWING ENTIT IES SHALL BE COVERED BY THE NEW SECTION:- A) ANY TRUST OR INSTITUTION REFERRED TO IN SECTION 11; B) ANY UNIVERSITY OR OTHER EDUCATIONAL INSTITUTION REF ERRED TO IN SECTION 10(23C) (IIIAD) AND (VI); C) ANY HOSPITAL OR OTHER INSTITUTION REFERRED TO IN SE CTION 10(23C) 7 I.T.A .NO.-5812/DEL/2012 (IIIAE) AND (VIA); D) ANY FUND OR INSTITUTION REFERRED TO IN SECTION 10(2 3C) (IV) E) ANY TRUST OR INSTITUTION REFERRED TO IN SECTION 10( 23C) (V) THE FOLLOWING ANONYMOUS DONATIONS SHALL NOT BE COVE RED:- A) DONATIONS RECEIVED BY ANY TRUST OR INSTITUTION CREA TED OR ESTABLISHED WHOLLY FOR RELIGIOUS PURPOSES. B) DONATIONS RECEIVED BY ANY TRUST OR INSTITUTION CREA TED OR ESTABLISHED FOR BOTH RELIGIOUS AS WELL AS CHARITABL E PURPOSES OTHER THAN ANY ANONYMOUS DONATION MADE WITH A SPECIFIC DI RECTION THAT SUCH DONATION IS FOR ANY UNIVERSITY OR OTHER EDUCAT IONAL INSTITUTION OR ANY HOSPITAL OR OTHER MEDICAL INSTITUTION RUN BY SUCH TRUST OR INSTITUTION. IT IS ALSO PROPOSED TO DEFINE ANONYMOUS DONATION TO MEAN ANY VOLUNTARY CONTRIBUTION REFERRED TO IN SUB-CLAUSE (I IA) OF CLAUSE (24) OF SECTION 2, WHERE A PERSON RECEIVING SUCH CONTRIB UTION DOES NOT MAINTAIN A RECORD CONSISTING OF THE IDENTITY OF THE PERSON MAKING SUCH CONTRIBUTION INDICATING THE NAME AND ADDRESS O F THE PERSON AND SUCH OTHER PARTICULARS AS MAY BE PRESCRIBED. CONSEQUENTIAL AMENDMENTS ARE PROPOSED TO BE MADE IN SECTION 10(23C) AND SECTION 13 SO AS TO PROVIDE THAT ANY IN COME BY WAY OF ANY ANONYMOUS DONATION WHICH IS TAXABLE UNDE R THE PROVISIONS OF THE PROPOSED NEW SECTION 11588 SHALL NOT BE EXCLUDED FROM THE TOTAL INCOME OF THE ASSESSEE. THESE AMENDMENTS WILL TAKE EFFECT FROM 1ST APRIL, 2 007 AND WILL ACCORDINGLY APPLY IN RELATION TO ASSESSMENT YEAR 20 07-2008 AND SUBSEQUENT YEARS. CONSEQUENTIAL AMENDMENTS ARE ALSO PROPOSED TO BE MA DE IN SUB-CLAUSE (IIA) OF CLAUSE (24) OF SECTION 2 TO INC LUDE VOLUNTARY CONTRIBUTIONS RECEIVED BY CERTAIN EDUCATIONAL AND MEDICAL INSTITUTIONS IN THE DEFINITION OF INCOM E. THE AMENDMENT IS RETROSPECTIVE IN THE CASE OF SOME INSTITUTIONS. ' 6.1. REFERRING TO SUB-SECTION (2) OF 115BBC ALONGWI TH THE CIRCULAR NO-14 OF 2006 DATED 28.12.2006 (288 ITR STATUTE-9) WHICH HA S BEEN EXTRACTED IN THE IMPUGNED ORDER, IT WAS AGAIN EMPHASIZED THAT THE RE LEVANT PROVISIONS IN THE FACTS OF THE PRESENT CASE HAVE BEEN WRONGLY APPLIED. FOR THIS SPECIFIC PURPOSE, ATTENTION WAS INVITED TO SUB PARA 25.2 OF THE SAID CIRCULAR SO AS TO EMPHASIZE THAT THE SAID 8 I.T.A .NO.-5812/DEL/2012 CIRCULAR CLARIFIES THAT MIXED PURPOSE INSTITUTION S HALL BE TAXED ONLY IF IT IS FOR ANY UNIVERSITY OR ANY OTHER INSTITUTION OR ANY HOSPITAL AND OR OTHER MEDICAL INSTITUTIONS AND IT HAS BEEN AMPLY CLARIFIED THAT ANONYMOUS DONA TIONS TO RELIGIOUS TRUST OR INSTITUTIONS SHALL NOT BE TAXED. 6.2. IN THE SAID BACKGROUND REFERRING TO PAPER BOOK FILED CONSISTING OF 125 PAGES OVER AND ABOVE THE SYNOPSIS AND DECISIONS REL IED UPON CONSISTING OF 94 PAGES REFERENCE WAS MADE TO PAGES 5-41 WHICH CONTAIN THE COPY OF THE TRUST DEED WHICH INCLUDE AT PAGES 5 TO 8 IN CLAUSE 5 THE OBJECTS OF THE TRUST. SPECIFIC ATTENTION WAS INVITED TO SUB-CLAUSE (I), (VII), (VIII), (XI), (XI I), (XIV), (XVII) ETC. OF THE SAME SO AS TO CONTEND THAT THE TRUST WAS INCORPORATED FOR CHARITA BLE PURPOSES AND ADVANCEMENT OF GENERAL PUBLIC UTILITY. THESE SUB-CLAUSES ARE EXTR ACTED HEREUNDER FOR READY- REFERENCE:- I). TO ESTABLISH, PROMOTE, SET-UP, RUN, MAINTAIN A SSIST FINANCE, SUPPORT AND/OR HELP IN SETTING UP AND/OR MAINTAINING AND/OR RUNNING SCHOOLS, AND OTHER INSTITUTIONS ORPHANAGES, WIDOW HOME, POOR HOUSES O R OTHER ESTABLISHMENTS OF RELIEF AND/OR HELP TO THE POOR, O LD AND INFIRM PEOPLE. VII) TO ARRANGE, ESTABLISH, MANAGE AND SUPERVISE OR PHANAGES, OLD AGE HOMES, NIGHT SHELTERS, HOSPITALS, DHARMSHALA, NARIN IKETAN AND MAHILA ASHRAM ETC. VIII). TO LIKE SPIRITUAL LECTURE TO MENTAL DISTURBE D PERSON AND SPIRITUAL LECTURE TO ALL KINDS OF HUMAN BEINGS. XI). TO DO ALL OTHER ACTIVITIES FOR THE INTEREST OF THE HUMAN BEINGS TO HELP IN PHYSICAL, MENTALLY AND FINANCIALLY. XII). TO GIVE PROVIDE AND/ OR RENDER FOOD, MEDICINE AND OTHER HELP AND/OR ASSISTANCE IN ANY SHAPE OR FORM TO THE POOR DESERVI NG AND NEEDY PERSON. TO GIVE PROVIDE AND/ OR RENDER MONETARY AND/ OR OTHER HELP AND ASSISTANCE FOR THE RELIEF OF PERSONS AND ANIMALS AFFECTED BY NATURAL A ND OTHER CALAMITIES SUCH AS FLOOD, FIRE, FAMINE, CYCLONE, EARTH-QUAKE, STORM, A CCIDENT, PESTILENCE DROUGHT, CYCLONE, EPIDEMIC AND THE LIKES TO GIVE DONATIONS, SUBSCRIPTIONS OR CONTRIBUTIONS, TO INSTITUTIONS, ESTABLISHMENTS CENT RES OF PERSONS DOING RELIEF WORK ON SUCH OCCASIONS. 9 I.T.A .NO.-5812/DEL/2012 XIV). TO OPEN, FOUND, ESTABLISH, MANAGE, PROMOTE, S ET-UP, RUN, MAINTAIN, ASSIST, FINANCE, SUPPORT AND/ OR HELP IN THE SETTIN G UP AND/ OR MAINTAINING AND/OR RUNNING SCHOOLS, COLLEGES, ARTS AND SCIENCE MEDICAL, PARA MEDICAL AND TECHNICAL, LECTURE HALLS AND OTHER ESTABLISHMENTS O R INSTITUTIONS ETC, FOR ADVANCEMENT OF EDUCATION AND KNOWLEDGE IN ARTS, SCI ENCE, LITERATURE, HUMANITIES AND ALL OTHER USEFUL SUBJECTS IN ALL THE IR MANIFESTATION. XVII). TO PROMOTE, ORGANIZE, ADMINISTER, ESTABLISH SUPPORT MAINTAIN AND/ OR GRANT AND TO PERSON INSTITUTION OR SOCIETY OR ORGAN IZATION IS EVER HAVING FOR THE OBJECTS OF CHARITABLE PURPOSE AND TO INCUR EXPENDI TURE IN CONNECTION THEREWITH. 6.3. IT WAS EMPHASIZED THAT THE ASSESSEE IS REGISTE RED U/S 12A OF THE INCOME TAX ACT AND CONTINUES TO BE REGISTERED UNDER THE ACT AN D WAS ELIGIBLE TO AVAIL THE EXEMPTION SUBJECT TO COMPLIANCE OF CONDITIONS STIPU LATED UNDER THE ACT AND IN ORDER TO ATTAIN THE OBJECTS OF THE TRUST THE ASSESS EE TRUST HAS BEEN CARRYING OUT NUMBER OF ACTIVITIES WHICH HAVE BEEN EXAMINED BY T HE AO. IN THESE CIRCUMSTANCES IT WAS HIS CONTENTION THAT THE ISSUE IS FULLY COVERED IN ASSESSEES FAVOUR BY THE JUDGEMENT OF THE APEX COURT IN THE CA SE OF CIT , UJJAIN VS M/S DAWOODI BOHARA JAMAT (CA 2492 OF 2014) COPY OF WHIC H IS PLACED AT PAGES 44 TO 82. 7. CARRYING US THROUGH IN DETAIL THROUGH THE AFORE SAID JUDGEMENT OF THE APEX COURT SPECIFIC ATTENTION WAS INVITED TO PARA 16 OF THE SAME WHEREIN THE SCHEME OF THE ACT VIS--VIS THE SECTIONS 11, 12, 12A AND 13 H AVE BEEN ELABORATELY DISCUSSED. FOR READY-REFERENCE WE REPRODUCE THE SAME HEREUNDER :- 16. THEREFORE, UNDER THE SCHEME OF THE ACT, SECTIO NS 11 AND 12 ARE SUBSTANTIVE PROVISIONS WHICH PROVIDE FOR EXEMPTIONS AVAILABLE TO A RELIGIOUS OR CHARITABLE TRUST. INCOME DERIVED FROM PROPERTY HEL D BY SUCH PUBLIC TRUST AS WELL AS VOLUNTARY CONTRIBUTIONS RECEIVED BY THE SAI D TRUST ARE THE SUBJECT-MATTER OF EXEMPTIONS FROM THE TAXATION UNDER THE ACT. SEC TIONS 12A AND 12AA DETAIL THE PROCEDURAL REQUIREMENTS FOR MAKING AN APPLICATI ON TO CLAIM EXEMPTION UNDER SECTION 11 & 12 BY THE ASSESSEE AND THE GRANT OR REJECTION OF SUCH APPLICATION BY THE COMMISSIONER. A CONJOINT READIN G OF SECTION 11, 12, 12A AND 12AA MAKES IT CLEAR THAT REGISTRATION UNDER SEC TIONS 12A AND 12AA IS A CONDITION PRECEDENT FOR AVAILING BENEFIT UNDER SECT IONS 11 AND 12. UNLESS AN INSTITUTION IS REGISTERED UNDER THE AFORESAID PROVI SIONS, IT CANNOT CLAIM THE 10 I.T.A .NO.-5812/DEL/2012 BENEFIT OF SECTIONS 11 AND 12. SECTION 13 ENLISTS THE CIRCUMSTANCES WHEREIN THE EXEMPTION WOULD NOT BE AVAILABLE TO A RELIGIOUS OR CHARITABLE TRUST OTHERWISE FALLING UNDER SECTION 11 OR 12 AND THEREFORE, REQUI RES TO BE READ IN CONJUNCTION WITH THE PROVISIONS OF SECTIONS 11 AND 12 TOWARDS D ETERMINATION OF ELIGIBILITY OF A TRUST TO CLAIM EXEMPTION UNDER THE AFORESAID P ROVISIONS. 7.1. THE HONBLE APEX COURT IT WAS SUBMITTED IN PA RA 17 OF THE SAID JUDGEMENT CONSIDERED THE OBJECTS OF THE TRUST IN THE FACTS OF THAT CASE. IT WAS SUBMITTED THAT THIS DISCUSSION HAS A SIGNIFICANT IMPACT IN THE FAC TS OF THE PRESENT CASE WHEN ITS OBJECTS ARE CONSIDERED AS THE DISCUSSION OF THE HON BLE COURT WOULD SHOW HOW THAT THEIR LORDSHIPS HAD AN OCCASION TO CONSIDER THE EX PRESSION FOR THE BENEFIT OF A SPECIFIC COMMUNITY. FOR READY-REFERENCE THE RELEV ANT EXTRACT FROM THE JUDGEMENT IS REPRODUCED HEREUNDER:- 17. KEEPING THE AFORESAID IN VIEW, WE WOULD NOW RE VERT BACK TO THE FACTS OF THE PRESENT CASE. THE OBJECTS OF THE RESPONDENT -TRUST AS MENTIONED UNDER THE TRUST DEED ARE AS FOLLOWS:- A. TO ARRANGE FOR NYAZ AND MAJLIS (LUNCH AND DINNE R) ON RELIGIOUS OCCASION OF THE BIRTH ANNIVERSARY AND URS MUBARAK O F AWLIYA-E-QUIRAM (SA) AND SAINTS OF THE DAWOODJI BOHRA COMMUNITY. B.TO ARRANGE FOR LUNCH AND DINNER ON RELIGIOUS OCCA SIONS AND SUSPICIOUS DAYS OF THE DAWOODI BOHRA COMMUNITY. C.FOR THE BETTERMENT OF THE DAWOODI BOHRA COMMUNITY TO GIVE AND TAKE QARDAN HASANA ACCORDINGLY TO FARMA OF QURANE MAJID. D.TO ARRANGE FOR RELIGIOUS EDUCATION AND TO ESTABLI SH MADARSA AND SUCH ORGANIZATION. E.TO ASSIST/HELP TO THE NEEDY PEOPLE FOR RELIGIOUS ACTIVITIES. F.TO CARRY OUT ALL RELIGIOUS ACTIVITIES ACCORDING T O SHARIAT AND DIRECTION OF SHARIAT-E-MOHAMMEDIYAH FOR THE PROSPERITY OF THE DA WOODI BOHRA COMMUNITY. 7.2. CONSIDERING THE OBJECTS REFERRING TO PARA 18 O F THE SAID DECISION IT WAS SUBMITTED THAT THE HONBLE APEX COURT TOOK NOTE THA T THE TRIBUNAL CAME TO THE CONCLUSION THAT IT WAS A PUBLIC RELIGIOUS TRUST. C ONSIDERING THIS FINDING ON RECORD IT WAS SUBMITTED THE APEX COURT TOOK NOTE OF THE FACT THAT THE HONBLE HIGH COURT CONSIDERING THE APPEAL FILED BEFORE IT CAME TO THE CONCLUSION THAT WHETHER THE RESPONDENT TRUST WAS A RELIGIOUS TRUST OR A CHAR ITABLE TRUST WAS A QUESTION OF 11 I.T.A .NO.-5812/DEL/2012 FACT AND SINCE IT HAS BEEN POSITIVELY ANSWERED BY T HE LAST FACT FINDING AUTHORITY I.E TRIBUNAL, THE HONBLE HIGH COURT CAME TO THE CONCLU SION THAT IT COULD NOT BE INTERFERED WITH IN APPEAL U/S 260-A OF THE ACT. TH E HONBLE APEX COURT IN THESE CIRCUMSTANCES IT WAS SUBMITTED CAME TO THE CONCLUSI ON THAT THE HIGH COURT OUGHT NOT TO HAVE DECLINED TO ANSWER THE QUESTIONS. REFE RRING TO PARA 20 OF THE SAID JUDGEMENT IT WAS POINTED OUT THAT THE HONBLE APEX COURT HELD THAT THE QUESTION OF LAW AND QUESTION OF FACT ARE INTRICATELY ENTWINED, SOMETIMES TO THE EXTENT OF BLURRING THE DOMAINS IN WHICH THEY OUGHT TO BE CONS IDERED AND THEREFORE, THE ISSUE REQUIRES A CAUTIOUS CONSIDERATION. THEIR LORDSHIPS HELD IT WAS SUBMITTED THAT THE QUESTION WHERE THE LEGAL EFFECT OF PROVEN FACTS IS INTRINSICALLY IN APPEAL HAS TO BE DIFFERENTIATED FROM THE QUESTION WHERE A FINDING OF FACT IS ONLY ASSAILED HAS TO BE CONSIDERED CAREFULLY. BRIEFLY CARRYING US THROUGH THE INTERVENING PARAS OF THE SAID JUDGEMENT THE LD. AR SUBMITTED THAT AFTER REFERRING TO VARIOUS DECISIONS RELIED BEFORE THE APEX COURT IN PARA 26 THEIR LORDSHIPS C AME TO THE CONCLUSION THAT DETERMINATION OF NATURE OF TRUST WHETHER IT IS WHOL LY RELIGIOUS OR WHOLLY CHARITABLE OR WHETHER BOTH CHARITABLE AND RELIGIOUS UNDER THE ACT IS NOT A QUESTION OF FACT AND REQUIRES EXAMINATION OF LEGAL EFFECTS OF THE PROVEN FACTS AND DOCUMENTS AND FOR THAT IMPLICATIONS OF THE OBJECTS OF THE TRUST AS CO NTAINED IN THE TRUST DEED NEED BE CONSIDERED. IT WAS EMPHASIZED THAT THEIR LORDSHIPS HELD THAT IT IS ONLY THE OBJECTS OF A TRUST IN THE TRUST DEED WHICH WOULD GOVERN ITS RIGHT OF EXEMPTION U/S 11 OR 12 OF THE ACT. FOR THE SAID PURPOSE IT WAS CONTENDED THEIR LORDSHIPS HELD IT IS ONLY THE OBJECTS IN THE BACK DROP OF FISCAL JURISPRUDENCE WH ICH WOULD ILLUMINATE THE PURPOSE BEHIND CREATION OR ESTABLISHMENT OF THE TRUST FOR E ITHER RELIGIOUS OR CHARITABLE OR BOTH RELIGIOUS AND CHARITABLE PURPOSES. IN THESE C IRCUMSTANCES IT WAS SUBMITTED IT HAS BEEN HELD THAT THE HONBLE HIGH COURT HAD ERRED IN REFUSING TO INTERFERE WITH 12 I.T.A .NO.-5812/DEL/2012 THE OBSERVATIONS OF THE TRIBUNAL IN RESPECT OF THE CHARACTER OF THE TRUST. THEREAFTER THE LORDSHIP PROCEEDED TO EXAMINE THE QUESTION THEM SELVES. 7.3. REFERRING TO PARAS 28 & 29 OF THE SAID JUDGEME NT IT WAS SUBMITTED THAT THEIR LORDSHIPS HELD THAT THE OBJECTS OF THE TRUST IN THE FACTS OF THAT CASE WERE NOT INDICATIVE OF A WHOLLY RELIGIOUS PURPOSE BUT WERE C OLLECTIVELY INDICATIVE OF BOTH CHARITABLE AND RELIGIOUS PURPOSES. THEIR LORDSHIPS WENT ON TO HOLD THAT IT IS EXPEDIENT TO COMPREHEND THE OBJECTS OF THE RESPONDE NT-TRUST WITH REFERENCE TO THE CONSTRUCTION OF THE EXPRESSIONS CHARITABLE PURPOSE AND RELIGIOUS PURPOSE. THE PHRASE CHARITABLE PURPOSE THEIR LORDSHIPS SAID IS E XPANSIVE AND INCLUSIVE. THE TERM AS DEFINED U/S 2(15) OF THE ACT WAS CONSIDERED AND IT WAS HELD THAT THE EXPRESSION CHARITABLE PURPOSE HAS BEEN DEFINED BY WAY OF AN INCLUSIVE DEFINITION SO AS TO INCLUDE RELIEF TO THE POOR, EDUCATION, MED ICAL RELIEF AND ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY. A CATE NA OF DECISIONS OF THE APEX COURT IT WAS HELD HAVE INTERPRETED THE SAID PROVISION AND ESPECIALLY THE EXPRESSION ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY WHICH IS OF THE WIDEST CONNOTATION. INVITING ATTENTION TO PARA 31 OF THE SAID JUDGEMENT IT WAS S UBMITTED THAT THEIR LORDSHIPS TOOK COGNIZANCE OF THE FOLLOWING DECISIONS:- I). CI T VS SURAT ART SILK CLOTH MANUFACTURERS ASSN; II) THIAGARAJAR CHARITIES VS CIT (1997) 4 SCC 724 AND OBSERVED THAT IF THE PRIMARY PURPOSE OR PREDOMINANT OBJECT OF A TRUST IS TO PROMOTE THE WELFARE OF THE GENERAL PUBLIC THE PURPOSE WOUL D BE CHARITABLE PURPOSE. RELYING ON THE SAID JUDGEMENT ADDRESSING THE OBJECT S OF THE ASSESSEE IT WAS FURTHER SUBMITTED THAT THE APEX COURT FURTHER HELD THAT IF THE PRIMARY OR PREDOMINANT OBJECT OF AN INSTITUTION IS CHARITABLE, ANY OTHER O BJECT WHICH MIGHT NOT BE CHARITABLE BUT WHICH IS ANCILLARY OR INCIDENTAL TO THE DOMINAN T PURPOSE, WOULD NOT PREVENT THE INSTITUTION FROM BEING A VALID CHARITABLE TRUST. 13 I.T.A .NO.-5812/DEL/2012 7.4. REFERRING TO PARA 34 OF THE SAID JUDGEMENT, AT TENTION WAS INVITED TO THE OBSERVATION THAT INDUBITABLY THE WORD CHARITY CO NNOTES ALTRUISM IN THOUGHT AND ACTION AND INVOLVES AN IDEA OF BENEFITTING OTHERS R ATHER THAN ONESELF THE RELEVANT EXTRACT IS REPRODUCED HEREUNDER ON WHICH HEAVY RELI ANCE IS BEING PLACED :- 34..IT ALSO CANNOT BE LOST SIGHT OF THAT THE SU PREME GOAL OF ALL RELIGIONS IS PHILANTHROPY WHICH COULD BE MANIFESTED IN VARIOUS FORMS. IT IS HELD THAT GIFTS FOR RELIGIONS PURPOSES ARE PRIMA FA CIE GIFTS FOR CHARITABLE PURPOSES. (SCHOALES V. SCHOALES [1930] 2 CH. 75 (C A); WHITE V. WHITE (1893) 2 CH. 41 (CA)). 7.5. LD. AR PLACED FURTHER HEAVY RELIANCE ON THE FO LLOWING OBSERVATION OF THE COURT IN SUPPORT OF THE FACTS OF THE PRESENT CASE:- 35. UNLIKE THE PHRASE CHARITABLE PURPOSE, RELIGI OUS PURPOSE IS NOT DEFINED UNDER THE ACT. ACCORDING TO LEXICOGRAPHERS , THE TERM RELIGIOUS WOULD MEAN OF OR RELATING TO RELIGION. (MERRIAM WEBSTE R DICTIONARY, MACMILLAN ENGLISH DICTIONARY). THE SHORTER OXFORD ENGLISH DI CTIONARY DEFINES THE TERM AS FOLLOWS:- DEVOTED TO RELIGION, EXHIBITING THE SPIRITUAL OR P RACTICAL EFFECTS OF RELIGION, FOLLOWING THE REQUIREMENTS OF RELIGION; PIOUS, GODL Y, DEVOUT. IN KANGA, PALKHIVALA AND VYAS, LAW AND PRACTICE OF INCOME TAX, VOL. 1, ED. 9 TH (AT P. 544) RELIGIOUS PURPOSES ARE INDICATED TO IN CLUDE THE ADVANCEMENT, SUPPORT OR PROPAGATION OF A RELIGION AND TENETS. T HUS A RELIGIOUS PURPOSE WOULD BE ONE RELATING TO A PARTICULAR RELIGION AND BROADLY WOULD ENCOMPASS OBJECTS RELATING TO OBSERVANCE OF RITUALS AND CEREM ONIES, PROPAGATION OF TENETS OF THE RELIGION AND OTHER ALLIED ACTIVITIES OF THE RELIGIOUS COMMUNITY. AN EXAMPLE OF SUCH WOULD ENTAIL ACTIVITIES SUCH AS THE DANCE PERFORMANCES (GARBA) OR DISTRIBUTION OF FOOD SPECIFICALLY FOR PE OPLE ON FAST DURING THE HINDU FESTIVITIES OF NAVRATRI. 7.6. CONSIDERING THESE DECISIONS, DEFINITION AND FA CTS, IT WAS SUBMITTED THEIR LORDSHIPS IN PARA 36 OBSERVED THAT THE ACTIVITIES O F THE TRUST MAY CONTAIN ELEMENTS THAT ARE BOTH RELIGIOUS AND CHARITABLE AND BOTH PU RPOSES MAY BE OVERLAPPING EACH OTHER AS WHAT MAY BE A RELIGIOUS ACTIVITY CARRIED O UT FOR A PARTICULAR SECTION WOULD BE A CHARITABLE ACTIVITY TOWARDS MEMBER OF THE OTHE R COMMUNITY. FOR READY- REFERENCE, WE REPRODUCE PARA 36 OF THE SAID JUDGEME NT:- 36. IN CERTAIN CASES, THE ACTIVITIES OF THE TRUST MAY CONTAIN ELEMENTS OF BOTH: RELIGIOUS AND CHARITABLE AND THUS, BOTH THE P URPOSES MAY BE OVER 14 I.T.A .NO.-5812/DEL/2012 LAPPING. MORE SO WHEN THE RELIGIOUS ACTIVITY CARRI ED ON BY A PARTICULAR SECTION OF PEOPLE WOULD BE A CHARITABLE ACTIVITY FO R OR TOWARDS OTHER MEMBERS OF THE COMMUNITY AND ALSO PUBLIC AT LARGE. FOR EXA MPLE, THE PRACTICE OF OPTIONAL CHARITY IN THE FORM OF KHAIRAT OR SADAQUAH UNDER MOHAMMADAN LAW WOULD BE COVERED UNDER BOTH CHARITABLE AS WELL AS R ELIGIOUS PURPOSE. FURTHER, WHILE PROVIDING GOOD AND FODDER TO ANIMALS ESPECIALLY COW IS RELIGIOUS ACTIVITY FOR HINDUS, IT WOULD BE CHARITAB LE IN RESPECT TO NON-HINDUS AS WELL. SIMILARLY, SERVICE OF WATER TO THE THIRST Y WOULD FIND MENTION AS RELIGIOUS ACTIVITY IN SACRED TEXTS AND AT THE SAME TIME WOULD QUALIFY AS A CHARITABLE ACTIVITY. 7.7. IN THESE CIRCUMSTANCES, IT WAS SUBMITTED THAT THE OBJECTS OF THE TRUST ARE SOLELY RELIGIOUS IN NATURE BECAUSE EACH OF THEM REF ERS EITHER TO RELIGIOUS OCCASIONS, RELIGIOUS EDUCATION OR TO RELIGIOUS ACTIVITIES. RE LYING ON PRIVY COUNCILS DECISION CITED IN PARA 38, IT WAS CONTENDED THAT THEIR LORDS HIPS SUPPORTED THE VIEW TAKEN HOLDING THAT THE PRIVY COUNCIL HAD HELD THAT THE CO URTS MUST APPLY THE STANDARD OF CUSTOMARY LAW AND COMMON OPINION AMONGST THE COMMUN ITY TO WHICH THE PARTIES INTERESTED BELONG TO. THE RELEVANT EXTRACT FROM PA RA 37 OF THE DECISION OF THE APEX COURT IS REPRODUCED HEREUNDER:- IN RE THE TRIBUNE, 7 ITR 415 HAS HELD THAT IN JUDG ING WHETHER A CERTAIN PURPOSE IS OF PUBLIC BENEFIT OR NOT, THE COURTS MUS T IN GENERAL APPLY THE STANDARD OF CUSTOMARY LAW AND COMMON OPINION AMONGS T THE COMMUNITY TO WHICH THE PARTIES INTERESTED BELONG TO. THEREFORE, IT IS PERTINENT TO ANALYSE WHETHER THE CUSTOMARY LAW WOULD RESTRICT THE CHARIT ABLE DISPOSITION OF THE INTENDED ACTIVITIES IN THE OBJECTS. 7.8. IN THE SAID BACKGROUND REFERRING TO PARA 39 OF THE SAID JUDGEMENT AND THE DISCUSSION THEREON IT WAS SUBMITTED THE OBJECTS OF THE TRUST WHICH INCLUDED ACTIVITIES LIKE PROVIDING FOOD ON RELIGIOUS DAYS O F THE COMMUNITY AND ESTABLISHMENT OF MADARSA OR INSTITUTIONS FOR DISSE MINATION OF RELIGIOUS EDUCATION AND RENDERING ASSISTANCE TO NEEDY AND POOR FOR RELI GIOUS ACTIVITIES, IT WAS POINTED OUT HAS BEEN HELD TO REFLECT THE ESSENCE OF CHARITY AND BENEFIT OF WHICH WAS NOT LIMITED TO THE MEMBERS OF THE COMMUNITY ITSELF AS N EITHER RELIGIOUS TENETS NOR OBJECTS LIMITED THE BENEFIT TO THE MEMBERS OF THAT COMMUNITY ONLY. CONSIDERING 15 I.T.A .NO.-5812/DEL/2012 ALL THESE FACTS IT WAS SUBMITTED THEIR LORDSHIPS HA D HELD THAT THE ACTIVITIES OF THE TRUST WERE BOTH RELIGIOUS AND CHARITABLE AS THEY WE RE NOT MEANT EXCLUSIVELY FOR A PARTICULAR COMMUNITY. 7.9. RELYING UPON THE FINDINGS AND THE DISCUSSION O N RELIGIOUS AND CHARITABLE PURPOSES AS CONSIDERED BY THE APEX COURT IN THE AF ORESAID DECISION OF CIT VS DAWOOD BOHARA JAMAT (CITED SUPRA) IT WAS SUBMITTED THAT SECTION 115BBC HAS WRONGLY BEEN APPLIED TO THE FACTS OF THE PRESENT CA SE. 8. LD. SR. DR HEAVILY RELYING UPON THE ORDERS OF TH E AUTHORITIES BELOW AND REFERRING TO THE CIRCULAR EXTRACTED IN THE IMPUGNED ORDER BY THE CIT(A) SUBMITTED THAT THE JUDGEMENT RELIED UPON BY THE ASSESSEE IN F ACT FULLY SUPPORTS THE DEPARTMENTS CASE. ATTENTION WAS INVITED TO THE F OLLOWING OBSERVATION OF THE APEX COURT AT PAGE 55 WHICH IT WAS SUBMITTED FULLY SUPPO RTS THE DEPARTMENTS VIEW:- THE HIGH COURT HAS FRAMED TWO ISSUES FOR CONSIDERA TION, THE FIRST OF THE TWO BEING, THAT, WHETHER IN THE FACTS AND CIRCUMSTANCE S OF THE CASE THE TRIBUNALS CONCLUSION THAT ALL THE OBJECTS OF THE T RUST ARE RELIGIOUS IN NATURE IS JUSTIFIED OR NOT. THE COURT IS OF THE VIEW THA T THE QUESTION WHETHER THE RESPONDENT-TRUST IS A RELIGIOUS OR CHARITABLE TRUST IS A QUESTION OF FACT AND SINCE IT HAS BEEN POSITIVELY ANSWERED BY THE LAST F ACT FINDING AUTHORITY-THE TRIBUNAL, IT CANNOT BE INTERFERED IN AN APPEAL UNDE R SECTION 260-A OF THE ACT. IN OUR VIEW, THE HIGH COURT OUGHT NOT TO HAVE DECLI NED TO ANSWER THE AFORESAID QUESTION ON GROUNDS THAT THE OBSERVATIONS OF THE TRIBUNAL IN RESPECT OF THE OBJECTS OF TRUST ARE PURE FINDING OF FACT AND THAT THE SAME HAVING BEEN ANSWERED, NO QUESTION OF LAW WOULD ARIS E FOR CONSIDERATION. 8.1. INVITING ATTENTION TO PARA 19 OF THE SAID JUDG EMENT, IT WAS SUBMITTED THAT THE HONBLE APEX COURT EMPHASIZED THAT CAUTION NEEDS TO BE MAINTAINED WHILE CONSIDERING SUCH A QUESTION. FOR READY-REFERENCE PARA 19 IS REPRODUCED HEREUNDER:- .. THE APPELLATE COURTS HOWEVER OUGHT TO BE CAUTIOUS W HILE WEEDING OUT SUCH QUESTIONS AND SHOULD THE QUESTION IN EXAMINATION IN VOLVE EXAMINATION OF FINDING OF FACT, EX CAUTELA ABUNDANT THE APPELLATE COURTS WOULD REQUIRE TO EXAMINE THAT WHETHER THE QUESTION INVOLVES MERELY T HE FINDING OF FACT OF THE LEGAL EFFECT OF SUCH PROVEN FACTS OR DOCUMENTS IN A PPEAL. WHILE THE FORMER 16 I.T.A .NO.-5812/DEL/2012 WOULD BE A QUESTION OF FACT WHICH MAY OR MAY NOT BE INTERFERED WITH, THE LATTER IS NECESSARILY THE QUESTION OF LAW WHICH WOU LD REQUIRE CONSIDERATION. 8.2. IN THESE CIRCUMSTANCES, REFERRING TO PARA 20 I T WAS POINTED OUT THAT THEIR LORDSHIPS HELD THAT THE QUESTION OF LAW AND FACT CA N BE INTRICATELY ENTWINED SOMETIMES TO THE EXTENT OF BLURRING THE DOMAINS AS SUCH CAUTIOUS ACTION IS REQUIRED. IN THIS BACKGROUND IT WAS EMPHASIZED THAT THE LORDS HIP HELD THAT IT IS ONLY PROVEN FACTS WHICH ARE REQUIRED TO BE CONSIDERED. FOR REA DY-REFERENCE WE EXTRACT THE RELEVANT PORTION HEREUNDER:- 20. IT IS OFTEN THAT THE QUESTION OF LAW AND FACT ARE INTRICATELY ENTWINED, SOMETIMES TO THE EXTENT OF BLURRING THE DOMAINS IN WHICH THEY OUGHT TO BE CONSIDERED AND THEREFORE, REQUIRE CAUTIOUS CONSIDER ATION. THE QUESTION WHERE THE LEGAL EFFECT OF PROVEN FACTS IS INTRINSIC ALLY IN APPEAL HAS TO BE DIFFERENTIATED FROM THE QUESTION WHERE A FINDING OF FACT IS ONLY ASSAILED. 8.3. IN THE FACTS OF THE PRESENT CASE IT WAS SUBMIT TED THAT MERELY HAVING PHOTOGRAPHS WHICH SHOWED THAT SOME LECTURE/DISCOURS E HAS BEEN ADDRESSED AND SOME OF PERSONS HAVE ATTENDED THE SAME DOES NOT PRO VE THAT THE ASSESSEE IS ENGAGED IN THE CHARITABLE ACTIVITIES FOR WHICH IT WAS CONSTITUTED AS SUCH THE JUDGEMENT OF THE APEX COURT DOES NOT APPLY AT ALL. REFERRING TO THE OBJECTS OF THE TRUST SPECIFIC ATTENTION WAS INVITED TO CLAUSE 5(I) ; 5(VI); & 5(XIV). IT WAS SUBMITTED THAT MERE MENTION OF THESE ACTIVITIES WOULD NOT MAK E THEM CHARITABLE AS THE ASSESSEE IS REQUIRED TO DEMONSTRATE THAT THESE ACTI VITIES OF GENERAL PUBLIC UTILITY WERE UNDERTAKEN BY APPLICATION OF FUNDS AND NOT BY MERE NARRATIONS. FOR READY- REFERENCE, WE REPRODUCE THESE SPECIFIC CLAUSES FOR THE OBJECTS CLAUSE:- 5(I) TO ESTABLISH, PROMOTE, SET-UP, RUN, MAINTAIN ASSIST FINANCE, SUPPORT AND/OR HELP IN SETTING UP/ OR MAINTAINING AND/OR RU NNING SCHOOLS, AND OTHER INSTITUTIONS ORPHANAGES, WIDOW HOME, POOR HOUSES OR OTHER ESTABLISHMENTS FOR RELIEF AND/ OR HELP TO THE POOR, OLD AND INFIRM PEO PLE. (VI) TO DISTRIBUTE SCHOLARSHIP TO THE ELIGIBLE STU DENTS/ CHILDREN. (XIV) TO OPEN, FOUND, ESTABLISH, MANAGE, PROMOTE, SET-UP, RUN, MAINTAIN, ASSIST, FINANCE, SUPPORT AND/OR HELP IN THE SETTING UP AND/OR MAINTAIN AND/ OR 17 I.T.A .NO.-5812/DEL/2012 RUNNING SCHOOLS, COLLEGES, ARTS AND SCIENCE MEDICAL , PARAMEDICAL AND TECHNICAL, LECTURE HALLS, AND OTHER ESTABLISHMENTS OR INSTITUTIONS ETC. FOR ADVANCEMENT OF EDUCATION AND OF KNOWLEDGE IN ARTS, SCIENCE, LITERATURE, HUMANITIES AND ALL OTHER USEFUL SUBJECTS IN ALL THE IR MANIFESTATIONS. 8.4. REFERRING TO THE COPY OF THE TRUST DEED FILED AT PAGES 5-41 IT WAS SUBMITTED THAT THE TRUST HAS COME INTO EXISTENCE FROM 31.12.2 002 AND IT OUGHT TO HAVE LED EVIDENCE IN REGARD TO ITS PAST PERFORMANCE AND PAST CONDUCT. IN FACT IT WAS HER SUBMISSION THAT WHY SHOULD THEREBE DONATION BOXES DURING PUBLIC DISCOURSE AND INFACT IN THE TIMES GONE BY WHEN GREAT SAGES LIKE A UGUST RISHI ETC. IMPARTED SPIRITUAL LEARNING THERE WAS NO PRACTICE TO COLLECT MONEY IN DONATION BOXES AND ONLY GURUDAKSHINA WAS OFFERED. REFERRING TO THE CASE OF HUKUM CHAND MILLS, IT WAS SUBMITTED THAT THE SUBJECT MATTER OF APPEALS INCLUDES GERMAINE FACTS AND THE ASSESSEE SHOULD HAVE ADDRESSED THE ISSUE BY WAY OF APPLICATION OF FUNDS. ACCORDINGLY IT WAS SUMMED UP THAT FIRSTLY THE OBJEC TS ARE NOT OF RELIGIOUS AND CHARITABLE NATURE AND EVEN OTHERWISE EVEN IN SITUAT IONS WHERE THE OBJECTS MEET THE REQUIREMENTS OF LAW THEY PER SE DO NOT LEAD TO THE CONCLUSIONS THAT THE FUNDS HAVE BEEN APPLIED TOWARDS THEIR ATTAINMENT. RELIANCE WAS PLACED UPON THE FOLLOWING JUDGEMENTS:- I). CIT V. ANDHRA CHAMBER OF COMMERCE, 55 ITR 722 (SC); II). BIHAR INSTITUTE OF MINING AND MINES SURVEYING VS CIT 208 ITR 608 (PATNA) III). PROFESSIONAL EDUCATION AND RESEARCH FOUNDATIO N VS DIR(E) 20 TAXMAN.COM 47 8.5. RELYING HEAVILY UPON SEC.115BBC AND SUB-SECTIO N (1) & (2) OF THE SAME, IT WAS ARGUED THAT THE SAME HAS RIGHTLY BEEN APPLIED TO THE FACTS OF ASSESSEES CASE. 9. THE LD.AR IN REPLY SUBMITTED THAT THE ARGUMENTS OF THE LD. SR. DR HAVE TO BE IN THE CONTEXT OF THE FINDING RECORDED BY THE AO OR THE CIT(A) AND THE LD. SR. DR CANNOT COMPLETELY RE-ARGUE THE CASE AND ATTEMPT TO IMPROVE THE CASE OF THE AO IGNORING THE FACT THAT THE AO HAS OBSERVED THAT HE IS SATISFIED THAT THE ASSESSEE 18 I.T.A .NO.-5812/DEL/2012 IS FALLING WITHIN THE SCOPE OF GENERAL PUBLIC UTI LITY AS WOULD BE BORNE OUT FROM UNNUMBERED PARA 2 OF THE ASSESSMENT ORDER. ACCORDI NGLY IT WAS ARGUED THE ASSESSEE IS NOT REQUIRED TO PROVE AT THIS STAGE TO THE SATISFACTION OF THE LD. DR THAT THE ASSESSEE TRUST IS ENGAGED IN CHARITABLE ACTIVIT Y THE ONLY ISSUE FOR CONSIDERATION IS THAT IS THE ASSESSEES GRIEVANCE JUSTIFIED ON FA CTS THAT THE ANONYMOUS DONATION AS CONSIDERED IN SEC.115BC IS NOT ATTRACTED. ACCO RDINGLY THE ARGUMENTS OF THE LD. SR. DR, IT WAS STATED ARE MISCHIEVOUS AND RAKI NG AN ISSUE WHICH DOES NOT ARISE. IT WAS HIS STAND THAT THE SR. DR CANNOT GO BEYOND WHAT THE AO HIMSELF HAS AGREED AND THE LD. SR. DR WAS PRECLUDED FROM SAYING SO. IT WAS ALSO HIS SUBMISSION THAT NO DOCUMENT HAS BEEN PLACED ON REC ORD BY THE SR. DR TO CONTEND THAT THE ACTIVITIES ARE NOT CHARITABLE. THE AO HAS CATEGORICALLY HELD THAT THE ASSESSEE IS FALLING WITHIN THE SCOPE OF GENERAL PUB LIC UTILITY AND THE HONBLE APEX COURT HAS HELD THAT THE SAME CANNOT BE GIVEN A NARR OW DEFINITION. THE JUDGEMENT OF THE APEX COURT IT WAS EMPHASIZED HAS CONSIDERING THE DEFINITION OF THE TERM RELIGION AND CONSIDERING THE FACT THAT THE RELIGI ON IS FOR THE BENEFIT OF THE MASSES HAVING ELEMENT OF CHARITY TOWARDS THE PEOPLE. IN T HESE CIRCUMSTANCES THE OBJECTS OF THE TRUST WHICH EMINENTLY ARE FOR SPREADING THE BENEFITS OF RENOWNED RELIGIONS OF THE WORLD TO THE PUBLIC AT LARGE BY THE TRUST W HOSE AIM IS ALSO TO PROVIDE FOOD, SHELTER, MEDICINES AND CARRY ON OTHER OBJECTS OF CH ARITABLE NATURE, THE ARGUMENTS OF THE LD. DR IN THIS BACKGROUND IT WAS CONTENDED ARE COMPLETELY DIVORCED FROM FACTS AND FINDING AVAILABLE ON RECORD AND CONTRARY TO THE JUDGEMENT OF THE APEX COURT (COPY OF WHICH HAS BEEN PLACED ON RECORD) AND IT WAS EMPHASIZED HAS BEEN READ AT LENGTH IN ORDER TO EMPHASIZE HOW THE FACTS ARE PARI MATERIA AND HOW THE RATIO DECIDENDI IS FULLY APPLICABLE TO THE PRESENT CASE. REFERRING TO THE ARGUMENTS ADVANCED BY THE SR. DR IT WAS CONTENDED THE LD. SR. DR HAS MERELY CONSIDERED IT NECESSARY TO MAKE REFERENCE TO SOME JUDGEMENTS WITH OUT CARING TO ESTABLISH HOW 19 I.T.A .NO.-5812/DEL/2012 THAT THE FACTS ARE PARI MATERIA AND FOR WHAT PRINCI PLE SHE IS RELYING ON THESE JUDGEMENTS. IT WAS HIS SUBMISSION THAT THE SAID PR ACTICE SHOULD BE STRONGLY DEPRECATED AND THE SAID SUBMISSION IT WAS SUBMITTED WAS FORTIFIED BY THE DECISION OF THE APEX COURT IN THE CASE OF RASHMI METALICS LTD. AND ANOTHER VS KOLKATA METROPOLITAN DEVELOPMENT AUTHORITY AND OTHERS (2013 ) 10 SCC 95, (COPY PLACED AT PAGES 80-94 OF THE PAPER BOOK). SPECIFIC ATTENT ION WAS INVITED TO STRONG DEPRECATION MADE BY THE HONBLE APEX COURT ADDRESSI NG THE PRACTICE OF CITING SEVERAL DECISION ON A PARTICULAR POINT OF LAW TAKI NG COGNIZANCE OF THE FACT THAT WHAT IS NECESSARY IS RATIO DECIDENDI AS COURTS MAY ON FACTS OF DIFFERENT CASES ARRIVE AT DIFFERENT CONCLUSIONS AND PARTIES SHOULD IF AVAILABLE ONLY REFER TO JUDGEMENT OF A LARGEST BENCH IN STRENGTH. IT WAS C ONTENDED THAT IN THE FACTS OF THE PRESENT CASE WHEREIN THE ASSESSEE HAS ESTABLISHED T HAT THAT FACTS ARE PARI MATERIA WITH THE FACTS AS CONSIDERED BY THE APEX COURT IN C IT, UJJAIN VS DAWOOD BOHARA JAMAT WHICH HAVE NOT BEEN REBUTTED BY THE REVENUE EITHER ON FACTS OR ON LAW AND REFERRING TO THE SAME IT WAS SUBMITTED THEY HAVE N OT BEEN UPSET BY A LARGER BENCH OF THE APEX COURT, THE SAME DESERVES TO BE FOLLOWED . 10. WE HAVE HEARD THE RIVAL SUBMISSIONS AND PERUSED THE MATERIAL AVAILABLE ON RECORD ALONGWITH THE CASE LAW RELIED UPON. IT IS S EEN THAT THE SHORT QUESTION WHICH FALLS FOR OUR CONSIDERATION IS THAT WHETHER IN THE FACTS AND CIRCUMSTANCES OF THE CASE HAS SECTION 115BBC BEEN RIGHTLY INVOLVED BY TH E TAX AUTHORITIES OR NOT. FOR THE SAID PURPOSE IT IS NECESSARY TO EXTRACT THE REL EVANT PROVISION AS IT STANDS ON THE STATUTE HEREUNDER:- 115BBC. (1) WHERE THE TOTAL INCOME OF AN ASSESSEE, BEING A PERSON IN RECEIPT OF INCOME ON BEHALF OF ANY UNIVERSITY OR OT HER EDUCATIONAL INSTITUTION REFERRED TO IN SUB-CLAUSE (IIIAD) OR SUB-CLAUSE (VI ) OR ANY HOSPITAL OR OTHER INSTITUTION REFERRED TO IN SUB-CLAUSE (IIIAE) OR SU B-CLAUSE (VIA) OR ANY FUND OR INSTITUTION REFERRED TO IN SUB-CLAUSE (IV) OR ANY T RUST OR INSTITUTION REFERRED TO IN SUB-CLAUSE (V) OF CLAUSE (23C) OF SECTION 10 OR ANY TRUST OR INSTITUTION REFERRED TO IN SECTION 11, INCLUDES ANY INCOME BY W AY OF ANY ANONYMOUS DONATION, THE INCOME-TAX PAYABLE SHALL BE THE AGGRE GATE OF- 20 I.T.A .NO.-5812/DEL/2012 [(I) THE AMOUNT OF INCOME TAX CALCULATED AT THE RAT E OF THIRTY PER CENT ON THE AGGREGATE OF ANONYMOUS DONATIONS RECEIVED IN EX CESS OF THE HIGHER OF THE FOLLOWING NAMELY:- (A) FIVE PER CENT OF THE TOTAL DONATIONS RECEIVED BY THE ASSESSEE; OR (B) ONE LAKH RUPEES, AND (II) THE AMOUNT OF INCOME-TAX WITH WHICH THE ASSESS EE WOULD HAVE BEEN CHARGEABLE HAD HIS TOTAL INCOME BEEN REDUCED BY THE AGGREGATE OF ANONYMOUS DONATIONS RECEIVED.] (2) THE PROVISIONS OF SUB-SECTION (1) SHALL NOT APP LY TO ANY ANONYMOUS DONATION RECEIVED BY- (A) ANY TRUST OR INSTITUTION CREATED OR ESTABLISHE D WHOLLY FOR RELIGIOUS PURPOSES. (B) ANY TRUST OR INSTITUTION CREATED OR ESTABLISHE D WHOLLY FOR RELIGIOUS AND CHARITABLE PURPOSES OTHER THAN ANY ANONYMOUS DONATION MADE WITH A SPECIFIC DIRECTION THAT SUCH DONATION I S FOR ANY UNIVERSITY OR OTHER EDUCATIONAL INSTITUTION OR ANY HOSPITAL OR OTHER MEDICAL INSTITUTION RUN BY SUCH TRUST OR INSTITUTION. (3) FOR THE PURPOSE OF THIS SECTION, ANONYMOUS DON ATION MEANS ANY VOLUNTARY CONTRIBUTION REFERRED TO IN SUB-CLAUSE (I IA) OF CLAUSE (24) OF SECTION 2, WHERE A PERSON RECEIVING SUCH CONTRIBUTI ON DOES NOT MAINTAIN A RECORD OF THE IDENTITY INDICATING THE NA ME AND ADDRESS OF THE PERSON MAKING SUCH CONTRIBUTION AND SUCH OTHER PARTICULARS AS MAY BE PRESCRIBED.] (EMPHASIS PROVIDED) 10.1. A PERUSAL OF THE SAME SHOWS THAT SUB-CLAUSE ( 3) OF THE ABOVE DEFINES WHAT CONSTITUTES ANONYMOUS CONTRIBUTION AND IN THE FACTS OF THE PRESENT CASE IT IS SEEN THAT THE ASSESSEE HAS ACCEPTED THE FACT THAT THE AMOUNT OF RS.27 LAKH ODD IS AN ANONYMOUS DONATION IN THE CIRCUMSTANCES IT IS SEEN THAT WE ARE NOT REQUIRED TO DELIBERATE THEREON. 10.2. SUB-CLAUSE (2)(A) OF THE ABOVE IT IS SEEN CAR VES OUT THE EXCEPTIONS TO SUB- CLAUSE (1) OF SECTION 115BBC AND IT UNAMBIGUOUSLY S TATES THAT ANONYMOUS DONATION RECEIVED BY ANY TRUST OR INSTITUTION, CRE ATED OR ESTABLISHED, WHOLLY FOR RELIGIOUS PURPOSES IS NOT COVERED UNDER THOSE PROVISIONS. SUB-CLAU SE (2)(B) FURTHER GOES ON TO SET OUT THAT ANY TRUST OR INSTIT UTION CREATED OR ESTABLISHED WHOLLY FOR RELIGIOUS AND CHARITABLE PURPOSES, OTHER THAN ANY ANONYMOUS DONATIONS MADE WITH A SPECIFIC DIRECTION, THAT SUCH DONATION IS FOR ANY UNIVERSITY; 21 I.T.A .NO.-5812/DEL/2012 OR OTHER EDUCATIONAL INSTITUTION; OR ANY HOSPITAL; OR OTHER MEDICAL INSTITUTION; RUN BY SAID TRUST OR INSTITUTION IS ALSO COVERED UNDER THE EXCEPTION TO THE SAID SECTION. 10.3. IN THE FACTS OF THE PRESENT CASE IT IS SEEN THAT THE ASSESSING OFFICER HAS GIVEN A FINDING THAT THE ASSESSEE IS FALLING WITHIN THE SCOPE OF GENERAL PUBLIC UTILITY. REVERTING AGAIN TO THE FACTS ON RECORD I T IS SEEN FROM THE COPY OF THE TRUST DEED AVAILABLE ON RECORD WHICH IS AT PAGES 5 TO 41 OF THE PAPER BOOK FILED. A PERUSAL OF THE SAME SHOWS THAT THE AIM OF THE TRU ST HAS BEEN SET OUT AT PAGE 4 OF THE SAME (PAPER BOOK PAGE 7). THE SAME READS AS UN DER:- 1. WHEREAS THE FOUNDER IS DESIROUS OF CREATING ON ENDOWMENT BY SETTING A PART AND ESTABLISHING A FUND FOR THE PUBLIC CHARITA BLE OBJECTS, AND PURPOSE IN INDIA, THEREINAFTER EXPRESSED. 10.4. THE AIMS AND OBJECTS OF THE TRUST WHICH ARE R EQUIRED TO BE CONSIDERED ARE SET OUT IN CLAUSE 5 OF THE TRUST DEED AND THE SAME ARE REPRODUCED HEREUNDER FOR READY- REFERENCE :- I) TO ESTABLISH, PROMOTE, SET-UP, RUN, MAINTAIN ASSIS T FINANCE, SUPPORT AND/OR HELP IN SETTING UP AND/ OR MAINTAINING AND/O R RUNNING SCHOOLS, AND OTHER INSTITUTIONS ORPHANAGES, WIDOW HOME, POOR HOUSES OR OTHER ESTABLISHMENTS FOR RELIEF AND/ OR HELP TO THE POOR, OLD AND INFIRM PEOPLE. II) TO GIVE PROMOTE AND/OR RENDER HELP AND ASSISTANCE I N CASH OR KIND TO POOR AND/OR DESTITUTE PEOPLE WIDOWS ETC. III) TO GIVE, PROVIDE AND/ OR RENDER HELP AND ASSISTANCE TO AND/OR IMPLEMENT ANY SCHEME FOR PROVIDING LIVELIHOOD UPLI FTMENT OF THE POOR. IV) TO WORK FOR UPLIFTMENT OF WOMEN, GIRLS-WIDOWS , ORPHANS, ILLITERATES, OLD-AGED, HANDICAPPED AND MENTALLY RETARDED PERSONS . V) TO PROVIDE FOOD & SHELTER TO POOR AND NEEDY PERSONS . VI) TO DISTRIBUTE SCHOLARSHIPS TO THE ELIGIBLE STUDENTS /CHILDREN. VII) TO ARRANGE, ESTABLISH, MANAGE AND SUPERVISE ORPHANAGES, OLD-AGED HOMES, NIGHT SHELTER, HOSPITAL, DHARAMSHALAS, NARI-NIKETAN/MAHILA ASHRAM. VIII) TO LIKE SPIRITUAL LECTURE TO MENTAL DISTURBED PERSON AND SPIRITUAL LECTURE TO AL ALL KINDS OF HUMAN BEINGS. IX) TO PROVIDE HEALTH CARE FACILITIES, MEDICAL RELIEF A ND TO OPEN AND MANAGE CHARITABLE DISPENSARIES, CLINICS ETC. AND TO DISTRIBUTE MEDICINE TO THE WEAKER SECTIONS . 22 I.T.A .NO.-5812/DEL/2012 X) TO PROVIDE FOOD & SHELTER TO COWS AND TO LOOK AFTER THE SHELTER OF THE COWS ETC. XI) TO DO ALL OTHER ACTIVITIES FOR THE INTEREST OF THE HUMAN BEINGS TO HELP IN PHYSICAL, MENTALLY AND FINANCIALLY. XII) TO GIVE PROVIDE AND/ OR RENDER FOOD, MEDICINE AND OTHER HELP AND/ OR ASSISTANCE IN ANY SHAPE OR FORM TO THE POOR DESERVI NG AND NEEDY PERSONS. TO GIVE PROVIDE AND/ OR RENDER MONETARY A ND/OR OTHER HELP AND ASSISTANCE FOR THE RELIEF OF PERSONS AND ANIMAL S AFFECTED BY NATURAL AND OTHER CALAMITIES SUCH AS FLOOD, FIRE, F AMINE, CYCLONE, EARTH-QUAKE, STORM, ACCIDENT, PESTILENCE DROUGHT, C YCLONE, EPIDEMIC AND THE LIKES TO GIVE DONATIONS, SUBSCRIPTIONS OR CONTRIBUTIONS, TO INSTITUTIONS, ESTABLISHMENTS CENTERS OF PERSONS DOING RELIEF WORK ON SUCH OCCASIONS. XIII) TO PROMOTE, ORGANIZE SELF HELP GROUP SPECIFICALLY F OR WOMEN AND MEN TO CREATE SAVING HABITS AND HELP THEM TO PROMOTE EC ONOMICALLY VALUABLE PROJECTS TO GENERATE INCOME AND EMPLOYMENT S BY THEMSELVES. IN THIS REGARDS A SPECIAL TEAM SHALL WORK AS A BRID GE BETWEEN THE BENEFICIARY AND GOVERNMENT AGENCIES INSTITUTIONS OT HER NGOS. XIV) TO OPEN, FOUND, ESTABLISH, MANAGE, PROMOTE, SET-UP, RUN, MAINTAIN, ASSIST, FINANCE, SUPPORT AND/OR HELP IN THE SETTING UP AND/OR MAINTAINING AND/OR RUNNING SCHOOLS, COLLEGES, ARTS AND SCIENCE MEDICAL, PARA-MEDICAL AND TECHNICAL, LECTURE HALLS, AND OTHER ESTABLISHMENTS OR INSTITUTIONS ETC. FOR ADVANCEMENT OF EDUCATION AND OF KNOWLEDGE IN ARTS, SCIENCE, LITERATURE, HUMANITIES AND ALL OTHER USEFUL SUBJECTS IN ALL THEIR MANIFESTATIONS. XV) TO ESTABLISH, MAINTAIN AND RUN DISPENSARIES, NURSIN G HOMES, HOSPITALS, PROVIDING MEDICAL TREATMENT TO ALL HUMAN DISEASES WITH ALL SCIENTIFIC AND TECHNICAL AND TESTS OF ALL KINDS. XVI) TO OPEN FUND, ESTABLISH, PROMOTE, SET-UP, RUN MAINT AIN ASSIST, FINANCE, SUPPORT AND/OR HELP IN THE SETTING UP AND/ OR MAINT AINING, BOARDING HOUSES, LIBRARIES, READING ROOMS AND OTHER TRAINING AND VOCATIONAL INSTITUTIONS. XVII) TO PROMOTE, ORGANIZE, ADMINISTER, ESTABLISH SUPPORT , MAINTAIN AND/ OR GRANT AND THE PERSON INSTITUTION OR SOCIETY OR ORGA NIZATION WHAT IS EVERY HAVING FOR THE OBJECTS OR CHARITABLE PURPOSE AND TO INCUR EXPENDITURE IN CONNECTION THEREWITH. (EMPHASIS PROVIDED IN THE PRESENT PROCEEDINGS) 10.5. ON A CONSIDERATION OF THE ABOVE, WE FIND THAT THE TAX AUTHORITIES HAVE COMPLETELY MIS-DIRECTED THEMSELVES IN CONSIDERING T HE ISSUE. IT IS SEEN THAT WHEREAS THE AO HOLDS THAT THE ASSESSEE FALLS WITHIN THE SCOPE OF GENERAL PUBLIC UTILITY IGNORES HIS OWN FINDING WHILE DECIDING THE QUESTION OF ANONYMOUS DONATIONS AND CONTRADICTS HIMSELF AND HOLDS THAT TH E ASSESSEE IS A TRUST SET UP FOR 23 I.T.A .NO.-5812/DEL/2012 IMPARTING EDUCATION IN THE SPIRITUAL FIELD AND THUS CONCLUDES THAT IT IS NOT A PUBLIC RELIGIOUS TRUST AS SUCH THE RIGOURS OF SECTION 115B BC ARE ATTRACTED IN FULL FORCE QUA THE ANONYMOUS DONATIONS. THE CIT(A) ON THE OTH ER HAND IT IS SEEN ALSO MISDIRECTS HIMSELF WHILE UPHOLDING THE ACTION OF TH E AO AND COMES TO THE FOLLOWING INCORRECT FINDING. THE REASONS FOR HOLD ING THE IMPUGNED ORDER INCORRECT SHALL BE ADDRESSED SUBSEQUENTLY, FOR THE PRESENT, WE EXTRACT THE RELEVANT FINDING UNDER CHALLENGE:- 5.DETERMINATION:- I HAVE GONE THROUGH THE FINDING OF THE AO IN THE A SSESSMENT ORDER AND WRITTEN SUBMISSION OF THE LD. AR SUBMITTED FROM TIM E TO TIME. IN THIS REGARD MAIN ISSUE IS TO BE DECIDED THAT ACTIVITY IS SPIRIT UAL OR RELIGIOUS. IN THIS REGARD LD. AR OF THE APPELLANT HAS RELIED ON VARIOUS DICTI ONARY MEANING OF WORD RELIGION AND SPIRITUAL. THE FINANCE ACT, 2006 HAD BROUGHT IN RADICAL CHANGES, WITH REGARD TO ANONYMOUS DONATIONS RECEIVE D BY CHARITABLE ORGANIZATIONS. A NEW SECTION 115BBC WAS INSERTED W. E.F 1.4.2007 WHEREBY ANONYMOUS DONATIONS ARE TAXABLE. THE PURPOSE OF PER CEPTION OF REVENUE AS TO THE SCOPE IS EXPLAINED BY THE BOARD CIRCULAR NO.14 OF 2006 DATED 28.12.2006 [288 ITR-ST.9]. THE RELEVANT PART OF THE CIRCULAR READS AS UNDER:- 25. TAXATION OF ANONYMOUS DONATIONS RECEIVED BY WH OLLY CHARITABLE TRUSTS OR INSTITUTIONS INCLUDING NON-PROFIT EDUCATI ONAL OR MEDICAL INSTITUTIONS. 25.1. INCOME OF WHOLLY CHARITABLE OR RELIGIOUS TRUS TS OR INSTITUTIONS AS WELL AS PARTLY CHARITABLE OR RELIGIOUS TRUSTS OR INSTITU TIONS IS EXEMPT FROM INCOME TAX UNDER SECTION 11 AND 12,,, SUBJECT TO THE FULFI LLMENT, INTER-ALIA, OF CERTAIN CONDITIONS OF APPLICATION OF INCOME AND INVESTMENT IN SPECIFIED MODES. SIMILARLY, INCOME OF ANY UNIVERSITY OR TO HER EDUCA TIONAL INSTITUTION REFERRED TO IN SUB-CLAUSE (IIIAD) OR SUB-CLAUSE (VIA) OR ANY HOSPITAL OR OTHER MEDICAL INSTITUTION REFERRED TO IN SUB-CLAUSE (IIIAE) OR SU B-CLAUSE (VIA) OR ANY FUND OR INSTITUTION REFERRED TO IN SUB-SECTION (IV) OR ANY TRUST OR INSTITUTION REFERRED TO IN SUB-CLAUSE (V) OF CLAUSE (23C) OF SECTION 10, IS EXEMPT FROM INCOME TAX SUBJECT TO THE FULFILLMENT OF CONDITIONS SPECIFIED IN THE SAID CLAUSE. 25.2. WITH A VIEW TO PREVENT CHANNELIZATION OF UNAC COUNTED MONEY TO THESE INSTITUTIONS BY WAY OF ANONYMOUS DONATIONS, A NEW SECTION 115BBC HAS BEEN INSERTED TO PROVIDE THAT ANY INCOME OF A WHOLLY CHARITABLE TRUST OR INSTITUTION BY WAY OF ANONYMOUS DONATION SHALL BE I NCLUDED IN ITS TOTAL INCOME AND TAXED AT THE RATE OF 30 PER CENT. ANONY MOUS DONATION MADE TO WHOLLY CHARITABLE AND RELIGIOUS TRUSTS OF INSTITUTI ONS, I.E. MIXED PURPOSE TRUSTS OF INSTITUTIONS SHALL BE TAXED ONLY IF IT IS FOR ANY UNIVERSITY OR OTHER EDUCATIONAL INSTITUTION OR ANY HOSPITAL OR OTHER ME DICAL INSTITUTION RUN BY 24 I.T.A .NO.-5812/DEL/2012 THEM. ANONYMOUS DONATION TO WHOLLY RELIGIOUS TRUST S OR INSTITUTIONS WILL NOT BE TAXED. (EMPHASIS PROVIDED BY THE BENCH) 25.3. ANONYMOUS DONATION HAS BEEN DEFINED IN THE NE W SECTION TO MEAN ANY VOLUNTARY CONTRIBUTION REFERRED TO IN SECTION 2(24) (IIA) OF THE ACT, WHERE A PERSON RECEIVING SUCH CONTRIBUTION DOES NOT MAINTAI N A RECORD OF THE IDENTITY INDICATING THE NAME AND ADDRESS OF THE PERSON MAKIN G SUCH CONTRIBUTION AND SUCH OTHER PARTICULARS AS MAY BE PRESCRIBED. 25.4. CONSEQUENTIAL AMENDMENTS HAVE BEEN MADE IN SE CTION 10(23C) AND SECTION 13 TO PROVIDE THAT ANY INCOME BY WAY OF ANY ANONYMOUS DONATION WHICH IS TAXABLE UNDER SECTION 115BBC SHALL BE INCL UDED IN THE TOTAL INCOME OF THE ASSESSEE. 25.5. APPLICABILITY-FROM ASSESSMENT YEAR 2007-08 ON WARDS. 5.1. FURTHERMORE, SECTION 2(24)(IIA) HAS ALSO DEFIN ED VOLUNTARY CONTRIBUTION WHICH READS AS UNDER:- VOLUNTARY CONTRIBUTIONS RECEIVED BY A TRUST CREATE D WHOLLY OR PARTLY FOR CHARITABLE OR RELIGIOUS PURPOSES OF BY AN INSTITUTI ON ESTABLISHED WHOLLY OR PARTLY FOR SUCH PURPOSES [OR BY AN ASSOCIATION OR I NSTITUTION REFERRED TO IN CLAUSE (21) OR CLAUSE (23) OR BY A FUND OR TRUST OR INSTITUTION REFERRED TO IN SUB-CLAUSE (IV) OR SUB-CLAUSE (V) {OR BY ANY UNIVER SITY OR OTHER EDUCATIONAL INSTITUTION REFERRED TO IN SUB-CLAUSE (IIIAD) OR SU B-CLAUSE (VI) OR BY AN HOSPITAL OR OTHER INSTITUTION REFERRED TO IN SUB-CLAUSE (III AE) OR SUB-CLAUSE (VIA) OF CLAUSE (23C) OF SECTION 10 [OR BY AN ELECTORAL TRUS T.] 5.2. AFTER ANALYZING THE CIRCULAR NO.14 AND DEFINI TION OF VOLUNTARY CONTRIBUTION AS PER SECTION 2(24)(IIA) OF THE I.T>A CT, IT IS APPARENT THAT ORGANIZATION SPREADING THE SPIRITUALITY CANNOT CLAI M THAT IT IS EXEMPT AS PER SECTION 115BBC OF THE IT ACT AS STATUTE IS VERY CLE AR IN THIS REGARD. I HAVE GONE THROUGH THE RELEVANT SECTION AND I HAVE FOUND THAT TRUST OF INSTITUTION CREATED OR ESTABLISHED WHOLLY FOR RELIGIOUS PURPOSE ARE EXEMPT. THE INSTANT CASE HAS BEEN FOUND TO BE ESTABLISHED FOR THE PURPO SE OF SPIRITUALITY AS PER ITS TRUST DEED DATED 30.12.2002, WHEREIN, AT OBJECT NO. VII IT HAS BEEN WRITTEN AS UNDER:- TO LIKE SPIRITUAL LECTURE TO MENTALLY DISTURBED PE RSONS AND SPIRITUAL LECTURE TO ALL KINDS OF HUMAN BEING. FROM THE OBJECT ITSELF IT IS EVIDENT THAT APPELLANT SOCIETYS OBJECT IS IN THE NATURE OF SPREADING SPIRITUALITY IN THE SOCIETY. S O, IT CANNOT BE HELD AS RELIGIOUS SOCIETY. FURTHERMORE, VARIOUS DEFINITI ONS OF SPIRITUALITY AND RELIGION RELIED UPON BY THE LD. AR OF THE APPELLANT IS OF NO HELP AS IT HAS BEEN DEMONSTRATED BY AO THAT DONATION AMOUNTING TO RS.27 ,25,306/- IS ANONYMOUS DONATION AND APPELLANT IS NOT A PUBLIC RE LIGIOUS TRUST, BUT, IT IS A SPIRITUAL ORGANIZATION AND CASE LAWS RELIED UPON BY LD. AR OF THE APPELLANT ARE DISTINGUISHABLE ON FACTS OF THE CASE. IN VIEW OF THE ABOVE DISCUSSION, IT IS 25 I.T.A .NO.-5812/DEL/2012 HELD THAT PROVISION OF SEC. 115BBC ARE CLEARLY ATTR ACTED ON FACTS OF THE CASE. GROUND NO.2, 3 AND 4 OF THE APPELLANT ARE DISMISSED . 10.6.THE TERM WHOLLY FOR RELIGIOUS PURPOSES OR W HOLLY FOR RELIGIOUS AND CHARITABLE PURPOSES HAVE NOT BEEN DEFINED UNDER TH E INCOME TAX ACT. AS PER GENERAL PRINCIPLE OF INTERPRETATION, EXPRESSIONS WH ICH ARE NOT DEFINED IN A STATUTE SHOULD BE CONSTRUED TO GIVE THEM SENSIBLE MEANING H AVING REGARD TO WELL KNOWN AND ACCEPTED CONCEPTS SO AS NOT TO LEAD TO A MANIFE STLY ABSURD OR ANOMALOUS RESULT WHICH COULD NOT HAVE BEEN INTENDED BY THE LEGISLATU RE. HENCE THE EXPRESSION RELIGION HAS TO BE APPROPRIATELY CONSTRUED IN THE CONTEXT OF THE DOCUMENT I.E. THE TRUST DEED IN THE PRESENT CASE. BEFORE WE PROCEED TO CONSIDER THE TRUST DEED, IT ALSO NEEDS TO BE KEPT IN MIND THAT IT IS A WELL ACC EPTED PRINCIPLE OF INTERPRETATION THAT THE NOMENCLATURE ADOPTED BY THE PARTIES IN ANY DOCUMENT IS NOT CONCLUSIVE TO INDICATE THE REAL NATURE OF THE DOCUMENT OR THE INT ENTION IT ACTUALLY RECORDS. IT IS THE DUTY OF THE COURT TO SEE AND EXAMINE WHAT IN TR UTH IS THE ESSENTIAL AND FACTUAL NATURE OF THE DOCUMENT. THIS RULE RELATING TO INCO NCLUSIVENESS OF THE NOMENCLATURE ADOPTED IS MORE RELEVANT IN INTERPRETA TION OF DOCUMENT THEN ON LAW AND COURT IS NEVER FOUND OR CONCLUDED BY LANGUAGE W HICH MAY HAVE BEEN USED IN THE DOCUMENT. HENCE IN ORDER TO DETERMINE WHETHER THE EXPRESSION SPIRITUAL USED IN THE TRUST DEED CONVEYED ITS REAL NATURE AND MEANING IT MUST FOLLOW THAT IT IS THE TRUST DEED ITSELF AND ITS FORM AND CONTENT W HICH IS TO BE EXAMINED AND CONSIDERED ALONGWITH THE EXPRESSION SPIRITUAL AS UNDERSTOOD IN ITS POPULAR SENSE- UTI LOQUITOR VULGUS SO AS TO BE IN ACCORD WITH THE REAL INTENTION OF T HE PARTIES AS APPEARING FROM THE INSTRUMENT. 10.7. ON A CONSIDERATION OF THE ABOVE ALONGWITH THE FINDINGS RECORDED IN THE ASSESSMENT ORDER WHICH HAVE BEEN EXTRACTED IN PARA 2 & 3 OF THIS ORDER, IT IS SEEN THAT WHILE CONSIDERING THE EXPLANATION QUA THE ANO NYMOUS DONATIONS WHICH WAS CLAIMED TO BE VOLUNTARY DONATIONS BY THE ASSESSEE, THE TAX AUTHORITIES HAVE COME 26 I.T.A .NO.-5812/DEL/2012 TO THE INCORRECT CONCLUSION THAT SINCE THE ASSESSEE WAS ENGAGED IN SPIRITUAL LECTURES WHICH ACCORDING TO THEIR UNDERSTANDING OF THE CONTE XT IN WHICH THE EXPLANATION WAS OFFERED WAS MISTAKENLY AND ERRONEOUSLY CONSIDER ED TO BE A BAR TO THE ASSESSEE IN CLAIMING THAT THE RIGOURS OF SEC. 115BBC WERE NO T ATTRACTED. THE SAID CONCLUSION HAS BEEN ARRIVED AT BY THE TAX AUTHORITI ES ON CONSIDERING THE ANONYMOUS DONATIONS IN THE FACTS OF THE PRESENT CA SE IN THE LIGHT OF THE NEWLY INSERTED SECTION 115BBC AND THE AFORESAID CIRCULAR NO.14 OF THE CBDT WHICH EXPLAINED THE SAME. ON CONSIDERING THE OBJECTS OF THE TRUST WE ARE OF THE VIEW THAT IN THE FACTS OF THE PRESENT CASE THE TAX AUTHORITI ES HAVE PROCEEDED ON A VERY NARROW AND INCORRECT UNDERSTANDING IN HOLDING THAT THE ASSESSEE TRUST WAS ENGAGED IN SPREADING SPIRITUALITY AND SINCE SECTION115BBC O NLY EXEMPTS RELIGIOUS TRUST, A TRUST ALLEGEDLY IMPARTING SPIRITUAL KNOWLEDGE WAS C ONSEQUENTLY NOT CONTEMPLATED AS AN EXCEPTION BY THE LEGISLATURE AS MUCH AS IT CO NSEQUENTLY IS BARRED TO CLAIM EXEMPTION VIS--VIS THE ANONYMOUS DONATION. 10.8. WE HAVE EXTRACTED THE OBJECTS OF THE TRUST AN D ON A CAREFUL CONSIDERATION OF THE SAME, WE HOLD THAT THE CONCLUSIONS DRAWN BY THE TAX AUTHORITIES ARE INCORRECT ON FACTS AND LAW. IT IS SEEN THAT ONLY IN CLAUSE (VIII) OF THE OBJECTS OF THE TRUST, IT IS SET OUT THAT THE TRUST IMPARTS SPIRITUAL LECTURES TO MENTALLY DISTURBED AND TO ALL HUMAN BEINGS. ON CONSIDERATION OF THE SAME WE FIN D THAT THE SAID AIM HAS TO BE UNDERSTOOD IN THE CONTEXT OF AND READ ALONGWITH THE OTHER OBJECTS OF THE TRUST WHOSE TARGET GROUPS ARE WIDOWS, ORPHANS, OLD AND IN FIRM PEOPLE, DESTITUTES, ILLITERATE, HANDI-CAPPED, MENTALLY RETARDED, PROVID ING FOOD AND SHELTER TO POOR AND NEEDY, NIGHT SHELTER, NARI-NIKETAN/ MAHILA ASHRAM, WEAKER SECTIONS AND ALL OTHER GROUPS WHO CAN BE INCLUDED IN THE PHRASE IN NEED O F PHYSICAL, MENTAL AND FINANCIAL HELP INCLUDING AND NOT EXCLUSIVELY AFFEC TED ON ACCOUNT OF NATURAL CALAMITIES. ETC. LIKE FLOOD, FIRE, FAMINE, DROUGHT, EARTH-QUAKES, STORM, ACCIDENT, 27 I.T.A .NO.-5812/DEL/2012 PESTILENCE, DROUGHT, EPIDEMICS ETC. A PERUSAL OF T HE ABOVE ENUMERATED LIST WHEN TAKEN IN THE CONTEST OF EXTREME DEVASTATING TRAGEDI ES AND THE NEEDS OF DESTITUTE; OLD AGE; INFIRM ETC NEEDS NO SPECIFIC TREATISE TO BRING OUT THE POTENTIAL IMPORTANCE AND BENEFITS OF SPIRITUAL LECTURE TO THE TARGET GRO UP OF MENTALLY DISTURBED, DESTITUTE DUE TO CALAMITIES, NATURAL OR MAN-MADE, AGE, ORPHAN ED, WIDOWED ETC. THE POTENTIAL BENEFIT AND SUCCOR TO THESE TARGET GROUPS BY WAY OF SOME PHILOSOPHY OR IMPARTING OF BELIEF THAT THERE IS SOME POWER BEYOND ALL THIS WHICH IS WATCHING OUT FOR THEM CANNOT EITHER BE UNDER-ESTIMATED OR OVER-E MPHASIZED AND HAS TO BE CONSIDERED IN THE PROPER PERSPECTIVE. THE FACT THA T THESE ARGUMENTS/PHILOSOPHY ON THE TOUCHSTONE OF SCIENCE MAY FAIL AND TO SOME OF U S NON-BELIEVERS MAYBE ONLY RHETORIC IS NOT A RELEVANT CONSIDERATION AS WHAT CA NNOT BE CURED HAS TO BE ENDURED, FOR A PERSON ON HIS LAST BREATH IS NO REASON TO CAL LOUSLY SUBSCRIBE TO THE PHILOSOPHY THAT SUCH A PERSON SHOULD BE DEPRIVED OF THE PSYCH OLOGICAL COMFORT OF BELIEVING THAT SOMEWHERE IN THE UNIVERSE THERE MAY HAVE BEEN A GREATER PURPOSE IN GOING THROUGH THE PAINFUL EXPERIENCE. THE ISSUE IS NOT W HAT WE BELIEVE BUT WHAT STRENGTH CAN BE IMPARTED TO A POTENTIAL DESTITUTE, SUFFERER. THE OBJECTS OF AMELIORATING THEIR MISERIES, PROVIDING NIGHT SHEL TER, SELF-HELP CAPABILITY, KNOWLEDGE DISTRIBUTION OF FOOD MEDICINES ETC COUPLE D WITH SOLACE IN THE NAME OF GOD CANNOT BE OUTRIGHTLY REJECTED AND MERELY BECAUS E THE ASSESSEE IS NOT LIMITING ITSELF TO DISBURSING FOOD MEDICINE, PROVIDING SHELT ER ETC AND IS ALSO GIVING LECTURES ON SPIRITUALITY WAS NOT THE KIND OF ASSESSEE CONTEM PLATED UNDER SECTION 115BBC WHO WAS TO BE VISITED BY THE RIGOURS OF THE SAID SE CTION. 10.9. WE ALSO HOLD ON A CONSIDERATION OF THE TERMS RELIGION; RELIGIOUS SPIRITUALITY AND SPIRITUAL, THAT IN THE CONTEX T OF THE PRESENT CASE, NO LENGTHY DELIBERATIONS ON THE AFORESAID TERMS IS NECESSARY. SUFFICE IT TO SAY THAT TO OUR UNDERSTANDING THE CONCEPT OF RELIGION DIVORCED FRO M SPIRITUALISM MAY BE POSSIBLE 28 I.T.A .NO.-5812/DEL/2012 AS IT MAY BE POSSIBLE FOR RELIGION TO EXIST IN A PU RELY RITUALISTIC MANNER BUT SPIRITUALISM DIVORCED FROM RELIGION IS IMPOSSIBLE T O BE VISUALIZED AND CONCEIVED. IN THE FACTS OF THE PRESENT CASE LECTURES/DISCOURSE S ON THE TEACHINGS OF THE PREVALENT AND PREDOMINANT RELIGIONS OF THE COUNTRY ARE CLAIMED TO HAVE BEEN GIVEN AS WOULD BE FOUND FROM THE WRITTEN SUBMISSION S EXTRACTED IN THE IMPUGNED ORDER WHICH HAVE ALSO BEEN REPRODUCED FROM THE IMPU GNED ORDER IN THE PRESENT PROCEEDINGS. IT HAS BEEN STATED THAT DURING THESE LECTURES VOLUNTARY DONATIONS BY THE ATTENDEES HAVE BEEN MADE WHICH CONSTITUTES THE ANONYMOUS DONATIONS. THE DEPARTMENT IT IS SEEN HAS CONSIDERED THESE VOLUNTAR Y DONATIONS EXIGIBLE TO TAX ON THE UNDERSTANDING THAT THE ASSESSEE TRUST WAS NOT F ULFILLING THE REQUIREMENTS OF A PUBLIC RELIGIOUS TRUST. WE HAVE SEEN AND DISCUSSED AT LENGTH AND COME TO A CONCLUSION THAT THE OBJECTS OF THE TRUST AND THE CO NTEXT IN WHICH SPIRITUAL LECTURES ESPOUSING THE PHILOSOPHY I.E. THE SPIRITUALITY OF T HE MAJOR AND PREDOMINANT RELIGIONS OF THE COUNTRY NEEDS TO CONSIDERED IN THE LIGHT OF THE WELL-ACCEPTED AND WELL-KNOWN FACT THAT ALL THE MAJOR RELIGIONS OF THE WORLD WITH ONE VOICE EULOGISE THE IMPORTANCE OF TAKING CARE OF THE OLD, INFIRM, D ISABLED, VISITED BY MISFORTUNE ETC. ON ACCOUNT OF SOME NATURAL OR MAN-MADE CALAMIT Y, WIDOWED, ORPHANED ETC. AND THESE DISCUSSIONS/LECTURES ARE NOT DIVORCED FR OM RELIGION AS MANKIND IS EXHORTED IN THE NAME OF GOD AND SAINTS TO TAKE CAR E OF THE WEAK AND THE NEEDY. ACCORDINGLY CONSIDERING THE ENTIRE CONSPECTUS OF FA CTS, CIRCUMSTANCES AND POSITION OF LAW, WE HOLD THAT THE REVENUE HAS INCORRECTLY AP PLIED SECTION 115BBC TO THE FACTS OF THE ASSESSEES CASE. 10.10. IN ORDER TO COME TO THE SAID CONCLUSION, W E HAVE RELIED UPON THE OBSERVATION AND FINDINGS OF THE APEX COURT IN THE C ASE OF CIT, UJJAIN VS DAWOODI BOHARA JAMAT AND THE RATIO DECIDENDI LAID DOWN THER EIN WHICH HOLDS THAT IT IS THE OBJECTS OF THE TRUST WHICH ARE REQUIRED TO BE SEEN AND THE STANDARDS TO BE APPLIED 29 I.T.A .NO.-5812/DEL/2012 FOR CONSIDERING THE SAME ARE THOSE OF THE CUSTOMARY LAW AND COMMON OPINION AMONGST THE COMMUNITY TO WHICH THE PARTIES INTEREST ED BELONG TO. THE PRESENT TRUST AS ITS VERY NAME SUGGESTS IS FORMED BY THE C OMMUNITY WHICH HAS NEVER LOOKED DOWN UPON ANY OTHER RELIGION AND OVER THE TI MES HAS CONSTANTLY MAINTAINED AND UPHELD THE DIVERSE AND AT TIMES CONTRADICTORY I NDIVIDUAL BELIEFS AND PRACTICES OF ITS FOLLOWERS WITH THE ATTITUDE OF LIVE AND LET LIVE AS IT IS NOT A STATIC RELIGION BUT A LIVING RELIGION, A WAY OF LIFE. THE RELIGION OF THE COMMUNITY BY ITS VERY PRACTICES, PHILOSOPHY AND TENETS HAS CELEBRATED AN D REVERED THE IMPORTANCE OF NOT ONLY HUMAN LIFE BUT ALSO ANIMAL LIFE AND VEGETATION LIFE SO MUCH SO THAT EVEN THE INANIMATE IS CELEBRATED AND REVERED CONSEQUENTLY T HE ENVIRONMENTAL ROLE AND IMPORTANCE IS EMPHASIZED IN EVERYDAY PRACTICES AS I T TOO IS REGARDED AS A LIVING ENVIRONMENT, A LIVING ENTITY. THUS FOLLOWING THE R ATIO OF THE PRIVY COUNCIL AS CONSIDERED BY THE APEX COURT IN CIT, UJJAIN VS M/S DAWOODI BOHARA JAMAT AND APPLYING THE STANDARDS OF THE CUSTOMARY LAW AND COM MON OPINION OF THE COMMUNITY TO WHICH THE TRUST BELONGS WE HOLD THAT T HE NUANCED DISTINCTION SOUGHT TO BE DRAWN BY THE REVENUE ON FACTS IS COMPLETELY M ISPLACED AND CONSEQUENTLY WE FIND OURSELVES UNABLE TO UPHOLD THE SAME. 10.11.WHILE COMING TO THE SAID CONCLUSION THE OBJEC TS OF THE TRUST HAVE BEEN CONSIDERED VIS--VIS THE RELEVANT PROVISION ALONGWI TH THE CIRCULAR NO.-14 AND THE OBSERVATIONS AND RATIO DECIDENDI OF THE APEX COURT IN CIT, UJJAIN VS M/S DAWOODI BOHARA JAMAT AND CONSIDERING THE RIVAL STAND OF THE PARTIES IN THE CONTEXT OF THE ABOVE ON THE FACTS OF THE PRESENT CASE, WE HOLD THA T THE CLAIM OF THE ASSESSEE DESERVES TO BE ALLOWED. 10.12.BEFORE PARTING, WE WOULD BRIEFLY ADDRESS THE ARGUMENTS OF THE LD. SR. DR NAMELY THAT THE TRUST SHOULD DEMONSTRATE BY ACTIVIT IES HOW THE FUNDS HAVE BEEN APPLIED. IT IS SEEN THAT THE SAID ISSUE HAS NOT B EEN RAISED BY THE AO WHOSE ORDER 30 I.T.A .NO.-5812/DEL/2012 UNDER CONSIDERATION HAS BEEN PASSED U/S 143(3). TH ERE IS NOTHING ON RECORD TO SHOW THAT THE SAID ORDER WAS NOT PASSED AFTER DULY CONSIDERING THE RELEVANT FACTS CONSEQUENTLY IN THE FACTS OF THE PRESENT CASE, IT I S NOT AN ISSUE FOR OUR CONSIDERATION. MOREOVER NOTHING HAS BEEN PLACED B EFORE US BY THE LD. SR. DR TO SHOW THAT THE ASSESSMENT ORDER ON WHICH SHE IS RELY ING HAS BEEN PASSED BY THE AO WITHOUT CONSIDERING THE RELEVANT FACTS. IN THE COUR SE OF HER ARGUMENTS, LD. SR. DR HAS REFERRED TO THE GOOD OLD TIMES WHERE RISHIS W ERE NOT IN THE HABIT OF COLLECTING DONATIONS. THOUGH THE SAID ARGUMENT WA S HERSELF CONTRADICTED BY THE LD. SR. DR AS SHE ALSO STATED THAT GURU DAKSHINA AS THE PRICE FOR TEACHING/ TAKING A DISCIPLE/INITIATING A DISCIPLE WAS ACCEPTE D, ACCORDINGLY THE ARGUMENT ADVANCED CAN BE IGNORED HOWEVER, WE FEEL IT NECESSA RY TO POINT OUT THAT PHILANTHROPY IS ENCOURAGED BY ALMOST ALL RELIGIONS AND THE MENDICANTS AND SAGES NOT ONLY AS PER HINDU MYTHOLOGY TO WHICH THE LD. SR . DR REFERS BUT OF ALMOST ALL MAJOR RELIGIONS OF THE WORLD ARE STATED TO HAVE DEP ENDED ON THE ALMS AND CHARITY GIVEN BY THE TOWN/VILLAGE PEOPLE. THIS IS A WELL-A CCEPTED FACT AND THE DONOR OF THE ALMS BY ALMOST ALL RELIGIONS ARE EXHORTED IDEALLY T O REMAIN UNIDENTIFIED. MYTHOLOGY MAY NOT LIVE UP TO THE EXACTING STANDARDS OF HISTORY AS WE UNDERSTAND BUT CANNOT BE OUTRIGHTLY REJECTED AS FAIRY TALES OR IMAGINATION AS MYTHOLOGY CAN BE DESCRIBED AS HISTORY WHICH HAS BEEN CARRIED THROUGH BY WORD OF MOUTH AND ALSO HAS A VERY IMPORTANT ROLE IN UNDERSTANDING HISTORY OF PEOPLE AND NATIONS. THUS NOT ONLY MYTHOLOGY SUPPORTS THIS GENERAL BELIEF OF AN IDEAL DONOR WHO REMAINS UNIDENTIFIED BUT EVEN VARIOUS RELIGIOUS WRITTEN TEX TS AND TREATIES ALSO IDEALISE A DONOR WHO REMAINS UNIDENTIFIED. THE STATUTE IT IS SEEN DOES NOT BAR THIS IN THE CASE OF WHOLLY RELIGIOUS PURPOSES TRUST OR IN THE CASE O F WHOLLY RELIGIOUS AND CHARITABLE PURPOSES TRUST .UNLESS THE OTHER CONDITION OF SECT ION 115BBC(2)(B) ARE FULFILLED WITH WHICH WE ARE NOT CONCERNED IN THE FACTS OF THE PRESENT CASE. 31 I.T.A .NO.-5812/DEL/2012 10.13. FOR THE SAKE OF COMPLETENESS, WE ALSO WOULD DEEM IT APPROPRIATE TO ADDRESS THE DECISIONS RELIED UPON BY THE LD. SR. DR. CONSI DERING THE SAME, WE ARE PAINED TO NOTE THAT THEY HAVE BEEN CITED CARELESSLY WITHOU T CONSIDERING IT NECESSARY EVEN TO ADDRESS HOW THE FACTS ARE PARI-MATERIA AND HOW T HE RATIO-DECIDENDI OF THE SAID DECISIONS ARE RELEVANT TO THE FACTS OF THE PRESENT PROCEEDINGS. IT IS SEEN THAT THE DECISION OF THE APEX COURT IN CIT V. ANDHRA CHAMBER OF COMMERCE, 55 ITR 722 (SC) HAS NO RELEVANCE TO THE FACTS OF THE PRESENT CASE. APART FROM THE FACT THAT THE DECISION PROCEEDS ON ENTIRELY DIFFERENT FACTS IT IS ALSO SEEN THAT THE ISSUE HAS BEEN DECIDED IN ASSESSEES FAVOUR ON THE FACTS OF THAT C ASE. SIMILARLY THE DECISION OF THE PATNA HIGH COURT IN BIHAR INSTITUTE OF MINING AND M INES SURVEYING VS CIT 208 ITR 608 (PATNA) AGAIN HAS NO RELEVANCE TO THE PRES ENT PROCEEDINGS AS CHARGING OF A SPECIFIED FEE BY THE INSTITUTION FROM THE STUDEN TS APPEARING AT SOME SPECIFIED EXAMINATION WAS HELD TO BE NOT CONSTITUTING AN ACT OF ADVANCEMENT OF GENERAL PUBLIC UTILITY AS SUCH COULD NOT BE SAID TO BE A CH ARITABLE ACTIVITY. THE RATIO OF THE SAID DECISION HAS NO RELEVANCE TO THE PRESENT PROCE EDINGS. SAME IS THE POSITION OF THE DECISION OF THE CHENNAI BENCH OF THE TRIBUNAL W HICH HELD IN PROFESSIONAL EDUCATION AND RESEARCH FOUNDATION VS DIR(E) 20 TAXM AN.COM 47 (CHENNAI) THAT WHEN EDUCATION IS CARRIED ON COMMERCIAL LINES IT CA NNOT CLAIM THE STATUS OF A CHARITABLE INSTITUTION. NONE OF THESE DECISIONS HE LP THE REVENUE IN ANY MANNER WHATSOEVER. THE RELIANCE PLACED UPON THE CIT, UJJA IN VS DAWOODI BOHRA JAMAT BY THE LD. SR. DR IN AS MUCH AS PROVEN FACTS BE CO NSIDERED INFACT GOES AGAINST THE ARGUMENTS OF THE LD. SR. DR AS THE PROVEN FACTS ON RECORD ARE THAT THE AO HOLDS THAT THE ASSESSEE IS COVERED WITHIN THE SCOPE OF GENERAL PUBLIC UTILITY AND QUA THE APPLICATION OF FUNDS THE AO HAS NOT FOUND THE ASSESSEES ACTIVITIES WANTING VIS--VIS THE CLAIMED OBJECTS SET OUT IN TH E TRUST. 32 I.T.A .NO.-5812/DEL/2012 11. ACCORDINGLY FOR THE DETAILED REASONS GIVEN HERE INABOVE, WE ALLOW THE APPEAL OF THE ASSESSEE. 12. IN THE RESULT THE APPEAL OF THE ASSESSEE IS ALL OWED. THE ORDER IS PRONOUNCED IN THE OPEN COURT ON 20 TH OF AUGUST 2014. SD/- SD/- (T.S.KAPOOR) (DIVA SINGH) ACCOUNTANT MEMBER JU DICIAL MEMBER DATED:- 20/08/2014 *AMIT KUMAR* COPY FORWARDED TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(APPEALS) 5. DR: ITAT ASSISTANT REGISTR AR ITAT NEW DELHI