Shri Parshwanath Jain Shwetamber Moorti Poojak Mandir Trust, Vidisha V. The CIT (Examption) , Bhopal

ITA 898/Ind/2018

• Counselvise Citation: [2020] 111 COUNSELVISE.COM (IT) 1195 (ITAT-INDORE)
• Duration Of Justice: 1 year(s) 5 month(s) 26 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-05-2020
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Next Hearing Date: 05-03-2020
• Assessment Year: misc
• Appeal Filed On: 26-11-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: S S MANTRI
• Keywords: Charitable institution
• Section: 12A; 12AA; 13; 22; 12

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, INDORE BENCH, INDORE BEFORE HONBLE KUL BHARAT, JUDICIAL MEMBER AND HONBLE MANISH BORAD, ACCOUNTANT MEMBER ITA NO.898/IND/2018 REVENUE BY S HRI S.S. MANTRI , CIT ASSESSEE BY SHRI ARUN JAIN, CA DATE OF HEARING 05 .03.2020 DATE OF PRONOUNCEMENT 22 .0 5 .2020 O R D E R PER MANISH BORAD, AM THE ABOVE CAPTIONED APPEAL FILED AT THE INSTANCE OF THE ASSESSEE IS DIRECTED AGAINST THE ORDERS OF LD. COMM ISSIONER OF INCOME TAX (EXEMPTION) (IN SHORT LD.CIT(A)], BHOP AL DATED 28.9.2018. M/S SHRI PARSHWNATH JAIN SHWETAMBER MOORTI POOJAK MANDIR TRUST, GANDHI CHOWK, GANJ BASODA, DISTT. VIDISHA VS. CIT(EXEMPTION) , BHOPAL (APPELLANT) (RESPONDENT ) PAN AAPTS0996L SHRI PARSHWNTH JAIN SHWETAMBAR MOORTI POOJAK MANDIR TRUST ITA NO. 898/IND/18 2 2. ASSESSEE HAS RAISED FOLLOWING GROUNDS OF APPEALS ; 1. THAT IN THE FACTS AND UNDER THE CIRCUMSTANCES OF THE CASE THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTION) [CIT(E)] ER RED IN FACTS AND ALSO IN LAW IN REJECTING APPLICATION FILED U/S 12A OF THE INCOME TAX ACT FOR THE REGISTRATION. 2. THAT IN THE FACTS AND UNDER THE CIRCUMSTANCES O F THE CASE THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTION) [CIT(E)] ER RED IN FACTS AND ALSO IN LAW IN FORMING THE OPINION THAT OBJECTS OF THE TRU ST ARE FOR THE BENEFIT OF A PARTICULAR COMMUNITY AND NOT FOR PUBLIC AT LARGE W HEREAS JAIN TEMPLE IS OPEN FOR ALL THE COMMUNITIES. 3. THAT IN THE FACTS AND UNDER THE CIRCUMSTANCES O F THE CASE THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTION) [CIT(E)] ER RED IN FACTS AND ALSO IN LAW IN FORMING THE OPINION THAT PROPER DOCUMENTS O F OWNERSHIP OF TEMPLE NOT PROVIDED WHEREAS OWNERSHIP CERTIFICATE ISSUED BY MUNICIPAL COUNCIL, GANJ BASODA WAS PRODUCED AS THE TEMPLE IS ABOUT 30 0 YEARS OLD AND THE NEW LAND FOR EXPANSION OF TEMPLE HAS BEEN PURCHASE D IN THE NAME OF TRUST. 4. THAT IN THE FACTS AND UNDER THE CIRCUMSTANCES O F THE CASE THE LEARNED COMMISSIONER OF INCOME TAX (EXEMPTION) [CIT(E)] ER RED IN FACTS AND ALSO IN LAW IN DIFFERENTIATING BETWEEN OBJECT AND AREA OF OPERATION AS POINT NO.5 OF TRUST DEED IS AREA OF OPERATION AND NOT OBJECT OF THE TRUST. 5. THE APPELLANT PRAYS TO SEEK LEAVE TO ADD OR AMEND ANY GROUNDS OF APPEAL, IF NECESSARY IN THE INTEREST OF JUSTICE UND ER LAW. SHRI PARSHWNTH JAIN SHWETAMBAR MOORTI POOJAK MANDIR TRUST ITA NO. 898/IND/18 3 3. BRIEF FACTS OF THE CASE AS CULLED OUT FROM THE R ECORDS ARE THAT THE ASSESSEE IS A TRUST REGISTERED WITH REGISTRAR O F PUBLIC TRUST DATED 11.12.2009. T O VERIFY THE OBJECTS AND ACTIV ITIES OF THE APPLICANT AND TO ASCERTAIN THE FULFILLMENT OF THE C ONDITIONS OF THE CONDITIONS MENTIONED UNDER SECTION 12AA, LD. CIT(EX EMPTION) CALLED FOR THE INFORMATION. IT WAS OBSERVED THAT TH E TRUST IS ENGAGED IN MAINTENANCE OF A 300 YEAR OLD JAIN TEMPLE. THE A CTIVITIES CARRIED OUT BY THE TRUST ARE BOTH RELIGIOUS AND CHARITABLE IN NATURE. IN REPLY TO THE INFORMATION ASKED BY LD. CIT(EXEMPTION ) ABOUT THE TITLE DEED OF THE PROPERTY, RESOLUTION PASSED FOR RECEIPT OF CORPUS DONATION AND WHETHER THE OBJECTS ARE FOR THE BENEFI T OF A PARTICULAR COMMUNITY. ASSESSEE FILED SUBMISSION/CLARIFICATION ON 19.9.18 BUT THE SAME WERE NOT CONSIDERED TO BE ACCEPTABLE BY LD . CIT(EXEMPTION) ON FOLLOWING GROUNDS :- (I) OBJECTS ARE FOR THE BENEFIT OF A PARTICULAR COMMUNIT Y AND NOT FOR PUBLIC AT LARGE. THE TRUST IS WORKING TOWAR DS SPECIFIC COMMUNITY & RELIGION I.E. JAIN SHWETAMBER COMMUNITY. IT IS ALSO SPECIFICALLY MENTIONED IN THE POINT NO. 5 OF THE TRUST DEED THAT BENEFITS OF THE TRUST CAN B E AVAILED GENERALLY BY ONLY THE SHWETAMBER DEVOTEES, BORTHER & SISTERS LIVING IN GANJ BASODA AND NEAR BY TOWNS CLE ARLY VIOLATED THE PROVLSO T9 SECTION 1~(1)(B} OF THE I T ACT. SHRI PARSHWNTH JAIN SHWETAMBAR MOORTI POOJAK MANDIR TRUST ITA NO. 898/IND/18 4 (II) NO PROOF /EVIDENC E PRODUCED THAT THE TE MPLE IS OWNED BY THE SAID TRUST, ONLY RECEIPT OF PROPERTY TAX IN THE NAME SHWETAMBER SAMAJ JAIN MANDIR IS PROVIDED, WHI CH DOES NOT SUBSTANTIATE THE OWNERSHIP BY THE APPLICANT TRUST . IN THE ABSENCE OF PROPER OWNERSHIP DOCUMENTS LIKE 'TITLE DEED ', OF THE TEMPLE ITSELF, THE ENTIRE ACTIVITIES IN THE NAME OF TEMP LE BECOMES DOUBTFUL. 4. ON THE BASIS OF THE ABOVE OBSERVATION OF LD. CIT(EXEMPTION) REJECTED THE APPLICATION FOR REGISTR ATION U/S 12AA OF THE ACT. AGGRIEVED ASSESSEE IS IN APPEAL BEFORE THE TRIBUNAL. 5. LD. COUNSEL FOR THE ASSESSEE REFERRED TO THE PA PER BOOK RUNNING FROM PAGE 1 TO 70 WHICH INCLUDES COPY OF TR UST DEED, REGISTRATION ORDER DATED 2.10.17 OF COURT OF SUB DI VISION OFFICER AND REGISTRAR OF PUBLIC TRUST, DISTRICT VIDISHA, CE RTIFICATE OF OWNERSHIP OF TEMPLE ISSUED BY MUNCIPAL COUNCIL, GAN J BASODA AND PROPERTY TAX RECEIPT ISSUED BY MUNICIPAL COUNCIL, G ANJ BASODA. LD. COUNSEL FOR THE ASSESSEE ALSO REFERRED TO THE OBJEC TIVES OF TRUST DEED AND SUBMITTED THAT TRUST IS RUNNING BOTH FOR RELIGI OUS AND CHARITABLE PURPOSES. THE OBJECTIVES INCLUDES PROVI DING MEDICAL RELIEF TO HUMAN BEINGS. OBJECTS ARE ALSO INCLUDED PROVIDING SAFETY TO BIRDS AND ANIMALS. HE ALSO SUBMITTED THAT IT IS CONSISTENTLY HELD SHRI PARSHWNTH JAIN SHWETAMBAR MOORTI POOJAK MANDIR TRUST ITA NO. 898/IND/18 5 BY HONBLE COURTS THAT IF THE OBJECTS OF THE TRUST ARE FOR CHARITABLE AS WELL AS RELIGIOUS PURPOSES THEN THE REGISTRATION U/S 12AA OF THE ACT SHOULD NOT BE DENIED ON THE PREMISE THAT THE TR UST IS WORKING FOR A PARTICULAR RELIGIOUS COMMUNITY. 6. PER CONTRA LD. DEPARTMENTAL REPRESENTATIVE VEHE MENTLY ARGUED SUPPORTING THE ORDERS OF LOWER AUTHORITY. 7. WE HAVE HEARD RIVAL CONTENTIONS AND PERUSED TH E RECORDS PLACED BEFORE US AND CAREFULLY GONE THROUGH THE DOC UMENTS FILED IN THE PAPER BOOK. PERUSAL OF TRUST DEED SHOWS THAT T HE OBJECTS OF THE TRUST ARE BOTH RELIGIOUS AND CHARITABLE IN NATURE A ND THE TRUST DEED REFERS TO PARTICULAR JAIN COMMUNITY AND MAINTENANCE OF OLD JAIN TEMPLE BUT APART FROM THIS THE OBJECTS ALSO INCLUDE S PROVIDING MEDICAL RELIEF TO BOTH HUMAN BEINGS, BIRDS AND ANIM ALS. THE OBJECTS ALSO INCLUDES PROVIDING PLACE FOR MEDITATIO N. AS REGARDS THE ISSUE RAISED BY LD. CIT(EXEMPTION) ABOUT THE OWNERS HIP OF THE TEMPLE BY THE SAID TRUST, WE OBSERVE THAT THE TEMPL E IS 300 YEAR OLD JAIN TEMPLE. THE MUNICIPAL COUNCIL OF GANJ BASODA, DISTRICT VIDISHA HAS ISSUED A CERTIFICATE BEARING NO.323 DAT ED 14.9.18 MENTIONING THAT THE TEMPLE HAS BEEN ALLOTTED THE BU ILDING/LAND SHRI PARSHWNTH JAIN SHWETAMBAR MOORTI POOJAK MANDIR TRUST ITA NO. 898/IND/18 6 SL.NO.225 IN WARD 22 AND THE ASSESSEE TRUST IS PAYI NG PROPERTY TAX FOR THIS IMMOVEABLE PROPERTY I.E. OLD JAIN TEMPLE. A COPY OF THE RECEIPT OF PROPERTY IS ALSO PLACED ON PAPER BOOK BY THE ASSESSEE. THE ASSESSEE TRUST IS ALSO DULY REGISTERED WITH THE REGISTRAR, PUBLIC TRUST AND THE TRUST DEED IS SIGNED BY 11 PERSONS RE SIDENT OF GANJ BASODA, DISTRICT VIDISHA. GENUINENESS OF THESE DOC UMENT HAS NOT BEEN DOUBTED BY LD. CIT(EXEMPTION). 8. IN THE BACK DROP OF THESE FACTS, WE FIND THAT T HE ASSESSEE TRUST HAVING MAINTENANCE RIGHT OF THE OLD JAIN TEMP LE AND THE PLACE ATTACHED THERETO IS BEING USED FOR RELIGIOUS AND CH ARITABLE PURPOSE AND RUNNING UNDER REGISTERED TRUST DEED. 9. NOW WHETHER IN THIS GIVEN FACTS LD. CIT(EXEMPTI ON) WAS JUSTIFIED IN DENYING THE REGISTRATION U/S 12AA OF T HE ACT. WE FIND THAT THE SIMILAR ISSUE AND ALMOST SIMILAR FACTS CAM E UP FOR ADJUDICATION BEFORE CO-ORDINATE BENCH, PUNE IN THE CASE OF SHRI JAIN SHWETAMBER MURTIPUJAK SANGH V/S CIT ITA NO.135 3/PN/2014 ORDER DATED 31.3.2015 WHEREIN ALSO SIMILAR ISSUE OF DENIAL OF REGISTRATION U/S 12AA OF THE ACT WAS UNDER CONSIDER ATION. WE FIND THAT THE CO-ORDINATE BENCH DECIDED IN FAVOUR OF THE ASSESSEE SHRI PARSHWNTH JAIN SHWETAMBAR MOORTI POOJAK MANDIR TRUST ITA NO. 898/IND/18 7 REFERRING TO VARIOUS JUDGMENTS AND ALSO REFERRING T O THE OBJECTS OF THE TRUST AND HELD AS UNDER :- 9. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ASSESSEE TRUST WAS REGISTERED UNDER THE BOMBAY PUBL IC TRUSTS ACT, 1950 VIDE NOTIFICATION DATED 17.11.2005. THE ASSESSEE HA D APPLIED FOR REGISTRATION UNDER SECTION 12A OF THE ACT, VIDE APPLICATION FILED IN FORM NO.10A. THE AIMS AND OBJECTS OF THE ASSESSEE TRUST AS PER THE TRUST DEED WERE AS UNDER:- 1. TO BUILD SHRI JAIN SHWETAMBER JAIN TEMPLE, PRAYE R HALL (DHARMSHALA), RENOVATE AND MAINTAIN THEM, ADMINISTE R AND IN PURSUANCE OF THAT TO DO ANYTHING NEEDED TO BE CARRI ED ON. 2. TO SET THE RELIGIOUS LIBRARY, MAINTAIN IT, PROPA GATE INDIAN CULTURE AND INCULCATE AND STUDY ALL THE CULTURES OF ALL THE RELIGION. TO TAKE UP RESEARCH ON RELIGIOUS, SOCIAL & EDUCATIONAL IN ORDE R TO UPLIFT THE PUBLIC AS A WHOLE. 3. TO ARRANGE NECESSARY MATTERS ENABLING THE DISCIP LES TO CARRY ON PRAYERS AND WORSHIP. TO TAKE UP ALL THE ACTIVITIES AS ARE CUSTOMARY OR TRADITIONAL AS PER THE PHILOSOPHY OF JAIN SHWETA MBER MURTIPUJAK. 4. TO ARRANGE ALL THE CEREMONIES AS ARE ENVISAGED I N THE PHILOSOPHY OF SHRI JAIN SHWETAMBER MURTIPUJAK AND TO TAKE UP A LL THE ADMINISTRATIVE REQUIREMENTS RELATING THERETO. 5. TO ARRANGE RESIDENCE AND DISCOURSES OF SADHUS SA DHVIS OF JAIN SHEWATAMBER MURTIPUJAK AND TO TAKE UP ALL THE RELEV ANT ACTIVITIES TO PROVIDE NECESSARY SERVICES TO THEM. 6. ALL THE FAMILIES WHO BELIEVE IN TRADITION AND PH ILOSOPHY OF SHWETAMBER MURTIPUJAK ARE TO BE ENCOURAGED FOR INTE R-SE CO- OPERATION, SECULARISM AND CREATE FRUITFUL BELIEF AN D UNDERSTANDING AND TO TAKE UP THE ACTIVITIES FOR THEIR PROTECTION AND BENEFIT SIMILARLY TO SORT OUT ALL THE DISPUTES RELATING TO RELIGION O R SOCIAL ISSUES. 7. TO CREATE, ENCOURAGE, PROPAGATE INTER-SE CO-OPER ATION, CO-LIVING AND FEEING OF CO-LIVING IN THE COMMUNITY OF ENTIRE PUBLIC AT LARGE. 10. THE COMMISSIONER WHILE CONSIDERING THE APPLICAT ION FOR GRANT OF REGISTRATION UNDER SECTION 12A OF THE ACT, WAS OF THE VIEW THAT THE PRIME THRUST OF TRUST WAS TO PROVIDE FOR THE BENEFI T OF A PARTICULAR RELIGIOUS COMMUNITY AND FURTHER, THE ACTIVITIES CAR RIED ON BY THE ASSESSEE I.E. HIRING OF DHARMSHALA WAS NOT A CHARIT ABLE OBJECT. THE ASSESSEE CLAIMED THAT IT WAS ORGANIZING BLOOD DONAT ION CAMPAIGNS, MEDICAL CHECK-UP CAMPAIGNS, ETC. IN ITS DHARMSHALA. HOWEVER, THE COMMISSIONER NOTED THAT THE SAID CAMPS WERE ORGANIZ ED BY OTHER ORGANIZATIONS AT DHARMSHALA OF THE ASSESSEE, AGAINS T WHICH RENT SHRI PARSHWNTH JAIN SHWETAMBAR MOORTI POOJAK MANDIR TRUST ITA NO. 898/IND/18 8 WAS PAID, WHICH WAS ACCOUNTED FOR BY THE ASSESSEE I N ITS INCOME AND EXPENDITURE ACCOUNT. 11. THE ISSUE ARISING BEFORE US IS WHETHER THE ASSE SSEE IS ENTITLED TO THE CLAIM OF REGISTRATION UNDER SECTION 12A OF THE ACT BEING A CHARITABLE AND RELIGIOUS TRUST AND ALSO WHERE THE ASSESSEE HAS VIOLATED THE PROVISIONS OF SECTION 13(1)(B) OF THE ACT, REGISTRATION UNDER SECTION 12A OF THE ACT COULD BE GRANTED TO THE ASSESSEE. THE P ERUSAL OF AIMS AND OBJECTS REFLECT THAT THE FIRST OBJECT OF THE AS SESSEE TRUST WAS TO BUILD SHRI JAIN SHWETAMBER JAIN TEMPLE, PRAYER HALL . FURTHER OBJECT OF THE TRUST WAS TO SET UP RELIGIOUS LIBRARY TO MAI NTAIN IT AND PROPAGATE INDIAN CULTURE AND INCULCATE AND STUDY AL L THE CULTURES OF ALL THE RELIGION. AS PER CLAUSE NO.3, THE OBJECT WA S TO ARRANGE NECESSARY MATTERS ENABLING THE DISCIPLES TO CARRY O N PRAYERS AND WORSHIP AND ALSO TO TAKE UP ALL ACTIVITIES AS ARE C USTOMARY OR TRADITIONAL AS PER THE PHILOSOPHY OF JAIN SHWETAMBE R MURTIPUJAK. THE OBJECTS ALSO PROVIDE THAT THE ASSESSEE WOULD AR RANGE THE RESIDENCE AND DISCOURSES OF SADHUS, SADHVIS OF JAIN SHWETAMBER MURTIPUJAK AND ALSO TO TAKE UP RELEVANT ACTIVITIES TO PROVIDE NECESSARY SERVICES TO THEM. FURTHER, ALL THE COMMUN ITIES WHO BELIEVE IN THE TRADITION AND PHILOSOPHY OF JAIN SHWETAMBER MURTIPUJAK WERE TO BE ENCOURAGED FOR INTER-SE COOPERATION AND TO TA KE UP CERTAIN ACTIVITIES AND ALSO BENEFITS. AS PER CLAUSE 7, THE OBJECT WAS TO CREATE, ENCOURAGE, PROPAGATE, INTER-SE COOPERATION, CO-LIVI NG AND FEELING OF CO-LIVING IN THE COMMUNITY OF ENTIRE PUBLIC AT LARG E. THE ISSUE WHICH HAS BEEN RAISED BY THE COMMISSIONER IN THIS CASE WH ETHER WHERE PRIME THRUST OF THE TRUST WAS TO PROVIDE BENEFITS T O A PARTICULAR RELIGIOUS COMMUNITY, CAN THE ASSESSEE BE ENTITLED T O THE CLAIM OF REGISTRATION TO ITS TRUST OF CARRYING ON CHARITABLE ACTIVITIES. THE OBJECTIONS OF THE LEARNED AUTHORIZED REPRESENTATIVE FOR THE ASSESSEE AGAINST THE ORDER OF COMMISSIONER WERE THAT THE OBJ ECTS OF THE TRUST WERE NOT FOR THE PROMOTION OF ANY RELIGION AND HENC E, IT COULD NOT BE DENIED THE BENEFIT OF REGISTRATION UNDER SECTION 12A OF THE ACT. 12. WE FIND THAT THE HON'BLE GUJARAT HIGH COURT IN CIT VS. CHANDRA CHARITABLE TRUST (2007) 294 ITR 86 (GUJ) WHICH HAS BEEN REFERRED TO BY PUNE BENCH OF THE TRIBUNAL IN JITO-PUNE CHAPTER VS. CIT (SUPRA), HAD CONSIDERED THE ISSUE OF GRANT OF REGISTRATION U NDER SECTION 12A OF THE ACT, IT WAS OBSERVED BY THE HON'BLE GUJARAT HIGH COURT THAT WHERE THE OBJECTS OF THE TRUST WERE NOT ONLY TO PRO PAGATE JAINISM OR HELP AND ASSIST MAINTENANCE OF TEMPLES, SADHUS, SAD HVIS, SHRAVIKS AND SHRAVAKS, AND OTHER GOALS ARE ALSO SET OUT IN T HE TRUST DEED, THE TRUST WAS A CHARITABLE AS WELL AS RELIGIOUS TRUST A ND SECTION 13(1)(B) OF THE ACT WOULD NOT BE APPLICABLE. THE HON'BLE HIG H COURT HAS HELD AS UNDER:- SHRI PARSHWNTH JAIN SHWETAMBAR MOORTI POOJAK MANDIR TRUST ITA NO. 898/IND/18 9 '5. THE QUESTION, THAT WHAT SHOULD BE THE PRINCIPL E ADOPTED AND WHETHER JAINISM IS A LIFESTYLE OR A RELIGION, WOULD LOSE MUCH OF ITS IMPORTANCE IN VIEW OF THE JUDGMENT OF THIS COURT IN THE MATTER OF CIT VS. BARKATE SAIFIYAH SOCIETY (SUPRA). IF JAINISM IS ACCEPTED TO BE A RELIGION AND FROM THE COVENANTS OF THE TRUST DEED I T CAN BE SPELT OUT THAT NOT ONLY TO PROPAGATE JAINISM OR HELP AND ASSI ST MAINTENANCE OF THE TEMPLE, SADHUS, SADHVIS, SHRAVIKS AND SHRAVAKS, YET OTHER GOALS ARE SET IN THE TRUST DEED, THEN THE TRUST WOU LD BECOME A CHARITABLE TRUST, SO ALSO A RELIGIOUS TRUST OR IT C AN BE ADDRESSED AS A CHARITABLE RELIGIOUS TRUST, AND, IF THAT BE SO, S. 13(1)(B) WOULD NOT BE APPLICABLE. ONCE THE BASIC QUESTION IS ANSWERED AGA INST THE INTERESTS OF THE REVENUE, THEN THE OTHER QUESTIONS CAN CONVENIENTLY BE DECIDED AGAINST THE INTERESTS OF THE REVENUE. TH E REFERENCE STANDS DISPOSED OF ACCORDINGLY. NO COSTS.' 13. THE HON'BLE SUPREME COURT IN CIT VS. DAWOODI B OHRA JAMAT, (2014) 364 ITR 31 (SC) HAD OBSERVED THAT THE OBJECTS OF TR UST AS DECLARED IN THE TRUST DEED WOULD GOVERN ITS RIGHT OF EXEMPTION UNDER SECTIONS 11 AND 12 OF THE ACT. THE HON'BLE SUPREME COURT ALSO RECOGNI ZED THE CREATION OR ESTABLISHMENT OF TRUST FOR EITHER RELIG IOUS OR CHARITABLE OR BOTH RELIGIOUS AND CHARITABLE PURPOSES. BY LOOKING AT THE OBJECTS OF THE TRUST, IT HAD TO BE DETERMINED WHETHER THE OBJE CTS WERE WHOLLY RELIGIOUS OR WHOLLY CHARITABLE OR BOTH RELIGIOUS AN D CHARITABLE AND IT WAS HELD THAT ON CONSIDERATION OF THE OBJECTS OF TH E TRUST, THE RELIGIOUS AND CHARITABLE PURPOSES AND ACTIVITIES OF THE TRUST COULD BE DETERMINED. IT WAS FURTHER HELD THAT SECTION 11 OF THE ACT ALLOWS SUCH TRUST WITH COMPOSITE OBJECTS TO CLAIM EXEMPTIO N FROM TAX AS A RELIGIOUS AND CHARITABLE TRUST, SUBJECT TO PROVISIO NS OF SECTION 13 OF THE ACT. THOUGH THE OBJECTS OF THE TRUST WERE BASED ON RELIGIOUS TENETS BUT WHERE THE ACTIVITIES OF THE TRUST FOR BO TH CHARITABLE AND RELIGIOUS WERE NOT EXCLUSIVELY MEANT FOR A PARTICUL AR RELIGIOUS COMMUNITY, THEN IT WOULD NOT FALL UNDER THE PROVISI ONS OF SECTION 13(1)(B) OF THE ACT AND IT WAS FURTHER HELD THAT WHERE THE ASSESSEE WAS CHARITABLE AND RELIGIOUS TRUST, WHICH DID NOT B ENEFIT ANY SPECIFIC RELIGIOUS COMMUNITY AND HENCE, IT COULD NOT BE HELD THAT THE PROVISIONS OF SECTION 13(1)(B) OF THE ACT WOULD BE ATTRACTED TO THE ASSESSEE TRUST AND THEREFORE, IT WOULD BE ELIGIBLE TO CLAIM EXEMPTION UNDER SECTION 11 OF THE ACT. THE RELEVANT OBSERVATIONS OF THE HON'B LE SUPREME COURT ARE AS UNDER:- '(I) THAT DETERMINATION OF THE NATURE OF THE TRUST AS WHOLLY RELIGIOUS OR WHOLLY CHARITABLE OR BOTH CHARITABLE AND RELIGIOUS UNDER THE ACT IS NOT A QUESTION OF FACT. IT IS A QUESTION WHICH REQU IRES EXAMINATION OF THE LEGAL EFFECTS OF THE PROVEN FACTS AND DOCUMENTS , THAT IS, THE LEGAL IMPLICATION OF THE OBJECTS OF THE ASSESSEE-TRUST AS CONTAINED IN THE TRUST DEED. IT IS ONLY THE OBJECTS OF A TRUST AS DE CLARED IN THE TRUST DEED WHICH WOULD GOVERN ITS RIGHT OF EXEMPTION UNDE R SECTION 11 OR SHRI PARSHWNTH JAIN SHWETAMBAR MOORTI POOJAK MANDIR TRUST ITA NO. 898/IND/18 10 12. IT IS THE ANALYSIS OF THESE OBJECTS IN THE BACK DROP OF FISCAL JURISPRUDENCE WHICH WOULD ILLUMINATE THE PURPOSE BE HIND CREATION OR ESTABLISHMENT OF THE TRUST FOR EITHER RELIGIOUS OR CHARITABLE OR BOTH RELIGIOUS AND CHARITABLE PURPOSE. THEREFORE, THE HI GH COURT HAD ERRED IN REFUSING TO INTERFERE WITH THE OBSERVATION S OF THE TRIBUNAL IN RESPECT OF THE CHARACTER OF THE TRUST ON THE GROUND S THAT THEY WERE PURE FINDINGS OF FACT. (II) THAT THE OBJECTS OF THE ASSESSEE-TRUST WERE NOT IND ICATIVE OF A WHOLLY RELIGIOUS PURPOSE BUT WERE COLLECTIVELY INDICATIVE OF BOTH CHARITABLE AND RELI- GIOUS PURPOSES. ALTHOUGH OBJECTS (C) AND (F) WHICH PROVIDED FOR ACTIVITIES COMPLETELY RELIGIOUS IN NATURE AND R ESTRICTED TO THE SPECIFIC COMMUNITY OF THE ASSESSEE-TRUST WERE OBJEC TS WITH RELIGIOUS PURPOSE ONLY, THE FACT THAT THE OTHER OBJECTS TRACE D THEIR SOURCE TO THE HOLY QURAN AND RESOLVED TO ABIDE BY THE PATH OF GOD LINESS SHOWN BY ALLAH WOULD NOT BE SUFFICIENT TO CONCLUDE THAT T HE ENTIRE PURPOSE AND ACTIVITIES OF THE TRUST WERE PURELY RELIGIOUS I N COLOUR. THE OBJECTS REFLECTED THE INTENT OF THE TRUST AS OBSERVANCE OF THE TENETS OF ISLAM, BUT DID NOT RESTRICT THE ACTIVITIES OF THE TRUST TO RELIGIOUS OBLIGATIONS ONLY AND FOR THE BENEFIT OF THE MEMBERS OF THE COMM UNITY. THE PROVISION OF FOOD TO THE PUBLIC ON RELIGIOUS DAYS O F THE COMMUNITY, THE ESTABLISHMENT OF MADARSAS AND ORGANISATIONS FOR DISSEMINATION OF RELIGIOUS EDUCATION AND RENDERING ASSIST- ANCE T O THE NEEDY AND POOR FOR RELIGIOUS ACTIVITIES WOULD REFLECT THE ESS ENCE OF CHARITY. THE ACTIVITY OF PROVIDING FOR FOOD ON CERTAIN SPECIFIC OCCASIONS AND OTHER RELIGIOUS AND AUSPICIOUS EVENTS OF THE DAWOODI BOHR A COMMUNITY DID NOT RESTRICT THE BENEFIT TO THE MEMBERS OF THE COMMUNITY. NEITHER THE RELIGIOUS TENETS NOR THE OBJECTS AS EXPRESSED L IMITED THE SERVICE OF FOOD ON THESE OCCA- SIONS TO MEMBERS OF THE SPEC IFIC COMMUNITY. THE ESTABLISHMENT OF MADARSAS OR INSTITUTIONS TO IM PART RELIGIOUS EDUCATION TO THE MASSES WOULD QUALIFY AS A CHARITAB LE PURPOSE QUALIFYING UNDER THE HEAD OF EDUCATION UNDER THE PR OVI- SIONS OF SECTION 2(15) OF THE ACT. SIMILARLY, ASSISTANCE BY THE ASSESSEE- TRUST TO THE NEEDY AND POOR FOR RELIGIOUS ACTIVITIES WOUL D NOT DIVEST THE TRUST OF ITS ALTRUIST CHARACTER. THEREFORE, THE OBJ ECTS OF THE TRUST EXHIBITED THE DUAL TENOR OF RELIGIOUS AND CHARITABL E PURPOSES AND ACTIVITIES. SECTION 11 OF THE ACT ALLOWED SUCH TRUST WITH COMPOSITE OBJECTS TO CLAIM EXEMPTION FROM TAX AS A RELIGIOUS AND CHARITABLE TRUST SUBJECT TO THE PROVISIONS OF SECTION 13 . THE ACT IVITIES OF THE TRUST UNDER SUCH OBJECTS WOULD, THEREFORE, BE ENTITLED TO EXEMPTION ACCORDINGLY. SHRI PARSHWNTH JAIN SHWETAMBAR MOORTI POOJAK MANDIR TRUST ITA NO. 898/IND/18 11 IN RE : TRUSTEES OF THE TRIBUNE [1939] 7 ITR 415 ( PC) AND IN RE : SOUTH PLACE ETHICAL SOCIETY; BARRALET V. ATTORNEY GENERAL [1980] 3 ALL ER 918; [1980] 1 WLR 1565; 54 TAX CAS 446 APPLIED. (III) THAT THE OBJECTS OF THE ASSESSEE-TRUST WERE BASED ON RELIGIOUS TENETS UNDER THE QURAN ACCORDING TO THE RELIGIOUS F AITH OF ISLAM. THE ACTIVITIES OF THE TRUST THOUGH BOTH CHARITABLE AND RELIGIOUS WERE NOT EXCLUSIVELY MEANT FOR A PARTICULAR RELIGIOUS COMMUN ITY. THE OBJECTS DID NOT CHANNEL THE BENEFITS TO ANY COMMUNITY IF NO T THE DAWOODI BOHRA COMMUNITY AND THUS, WOULD NOT FALL UNDER THE PROVISIONS OF SECTION 13(1)(B) OF THE ACT. THE ASSESSEE-TRUST WAS A CHARITABLE AN D RELIGIOUS TRUST WHICH DID NOT BENEFIT ANY SPECIFIC RELIGIOUS COMMUNITY AND, THEREFORE, IT COULD NOT BE HELD THAT SECTION 13(1)(B) OF THE ACT WOULD BE ATTRACTED TO THE ASSESSEE-TRUST AND THEREB Y, IT WOULD BE ELIGIBLE TO CLAIM EXEMPTION UNDER SECTION 11 OF THE ACT.' 14. IN VIEW OF THE ABOVE SAID PROPOSITION LAID DOWN BY THE HON'BLE SUPREME COURT, THE OBJECTS OF THE TRUST ARE TO BE L OOKED INTO AND THOSE OBJECTS CAN BE EITHER CHARITABLE OR RELIGIOUS IN NATURE OR BOTH CHARITABLE OR RELIGIOUS IN NATURE. THE QUESTION WHI CH ARISES FOR CONSIDERATION BEFORE US IS WHETHER THE TRUST WHOSE OBJECTS WERE RELIGIOUS AS WELL AS CHARITABLE WOULD BE ENTITLED F OR REGISTRATION UNDER SECTION 12A OF THE ACT. LOOKING AT THE OBJECTS OF THE TRUST, W E FIND THAT ONE OF THE OBJECTS OF THE ASSESSEE TRUST WAS TO BUILD A TEMPLE, PRAYER HALL AND MAINTAIN THE SAME AND FURTH ER OBJECT WAS TO SET UP A RELIGIOUS LIBRARY, MAINTAIN IT AND PROPAGA TE INDIAN CULTURE AND INCULCATE AND STUDY ALL THE CULTURES OF ALL THE RELIGION. FURTHER, TO TAKE UP RESEARCH ON RELIGIOUS, SOCIAL AND EDUCATION AL IN ORDER TO UPLIFT THE PUBLIC AT LARGE. THE OBJECTS NOS.3 TO 5 OF THE TRUST DEED WERE ADMITTEDLY FOR THE PROPAGATION OF PHILOSOPHY O F SHRI JAIN SHWETAMBER MURTIPUJAK. HOWEVER, OBJECT NO.7 WAS TO CREATE, ENCOURAGE AND PROPAGATE INTER-SE COOPERATION, CO-LI VING AND FEELING OF CO-LIVING IN THE COMMUNITY OF ENTIRE PUBLIC AT L ARGE. THE OBJECTS OF THE ASSESSEE TRUST THUS, REFLECT THE ACTIVITIES TO BE CARRIED ON FOR THE PURPOSE OF JAIN RELIGION AND ALSO FOR THE PURPOSE O F PUBLIC AT LARGE. IN VIEW THEREOF, IT COULD NOT BE HELD THAT THE SAME ARE MEANT FOR THE BENEFIT OF ONLY JAIN RELIGIOUS COMMUNITY. WE REVERS E THE FINDINGS OF THE COMMISSIONER IN THIS REGARD. SHRI PARSHWNTH JAIN SHWETAMBAR MOORTI POOJAK MANDIR TRUST ITA NO. 898/IND/18 12 10. ON EXAMINING THE FACTS AND ISSUE OF THE INSTAN T APPEAL IN THE LIGHT OF ABOVE REFERRED DECISION OF SHRI JAIN SHWETAMBER MURTIPUJAK SANGH V/S CIT (SUPRA) WE FIND THAT THE ISSUE STANDS SQUARELY COVERED IN FAVOUR OF ASSESSEE WITH REGARD TO THE ISSUE OF REGISTRATION U/S 12AA OF THE ACT AND WE THEREFORE, RESPECTFULLY FOLLOWING THE ABOVE DECISION ARE OF THE CONSIDERED VIEW THAT LD. CIT (EXEMPTION) ERRED IN DENYING THE REGISTRATION U/S 1 2AA OF THE ACT TO THE ASSESSEE COMPLETELY IGNORING THE FACT THAT THE ASSESSEE IS WORKING FOR BOTH RELIGIOUS AND CHARITABLE PURPOSE A ND THE PROPERTY IN QUESTION I.E. 300 YEAR OLD JAIN TEMPLE IS BEING MAINTAINED AND USED FOR RELIGIOUS AND CHARITABLE PURPOSE BY THE AS SESSEE TRUST UNDER THE CERTIFICATE GRANTED BY THE MUNICIPAL COUN CIL. WE THEREFORE ALLOW GROUND NO. 1 TO 4 RAISED BY THE ASS ESSEE AND DIRECT LD. CIT ()EXEMPTION) TO GRANT THE CERTIFICATE OF RE GISTRATION U/S 12AA OF THE ACT. 11. GROUND NO.5 IS GENERAL IN NATURE WHICH NEEDS N O ADJUDICATION. SHRI PARSHWNTH JAIN SHWETAMBAR MOORTI POOJAK MANDIR TRUST ITA NO. 898/IND/18 13 10. IN THE RESULT APPEAL OF THE ASSESSEE IS ALLOWE D. THE ORDER PRONOUNCED IN THE OPEN COURT ON 22.05.2 020. SD/- SD/- ( KUL BHARAT) (MANISH BOR AD) JUDICIAL MEMBER ACCOUNTANT MEMBE R / DATED : 22 ND MAY, 2020 /DEV COPY TO: THE APPELLANT/RESPONDENT/CIT CONCERNED/CIT (A) CONCERNED/ DR, ITAT, INDORE/GUARD FILE. BY ORDER, ASSTT.REGISTRAR, I.T.A.T., INDORE