TaxTMI 
TaxTMI 
2012 (11) TMI 511
X X X X Extracts X X X X
X X X X Extracts X X X X
....s furnished by the assessee - trust, the DIT (E) had observed that the Memorandum of Association and Articles of Association contained the following objects which were, according to the DIT (E), confined for the benefits of a particular community: (a) To conduct on Christian principles and as an expression of Christian service by Tunbridge English High School; (b) To ameliorate the educational backwardness of Anglo Indians retaining English as the medium of instruction to preserve the employment of English as such medium. 4. After due consideration of the contentions of the learned AR of the assessee and also placing reliance in the cases of- (i) Ganjam Nagappa & Son Trust v. DIT [2004] 269 ITR 59(Kar); and (ii) Shubhram Trust [ITA No.380/2009 dated 30.5.2011] of the Hon'ble jurisdictional High Court, the DIT (E) had observed that the objects of the present case under consideration were for the benefit of a particular community which attracts the provisions of s. 13(1) (b) of the Act. Elaborately dealt with the provisions of s. 13 (1)(b) of the Act, the DIT (E) had observed thus: "5. The Explanation 2 to section 13(1)(b) will not be applicable to the fac....
X X X X Extracts X X X X
X X X X Extracts X X X X
....sp;that assuming that in future any religious activities might be carried on by the assessee, it shall be for the AO to examine such things and deny exemption for that particular year, but, it cannot be a reason for denial of registration u/s 12AA (1). - relies on the case laws: (i) DIT (E) v. Garden City Educational Trust [2011] 330 ITR 480 (Kar); & (ii) Sanjeevamma Hanumanthe Gowda Charitable Trust v. DIT (E) [2006] 285 ITR 327 (Kar) 6. On the other hand, the learned DR supported the stand of the DIT (E). The submissions of the learned D R are summarized as under: (i) that the DIT(E) had relied on the decision reported in 269 ITR 59 to support the view that registering authority must be satisfied both, namely (a) the charitable character; and (b) the genuineness of its activities as one of it cannot substitute the other; (ii) that the DIT (E) at the time of registration should only be satisfied with the genuineness of activity and need not resort to s. 13 which is the domain of the AO to be applied at the time of assessment; Relies on the case law: DIT v. Garden City Educational Trust [2011] 330 ITR 480 (Kar); (iii) rejecting the assessee's conte....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... registration could only be granted as 'religious and charitable society.' 7. Refuting the Revenue's contentions that the School is confined for the benefit of a particular community, viz., the Anglo Indian Community and that too, to conduct on Christian principles, the learned A R submitted that the premises on which the DIT (E) based his order of rejection is ill-conceived for the following reasons: (i) that the assessee's institution has been imparting education following ICSC Syllabus from its inception and its activity has been in conformity with its object 4(c) cited supra; - that though the School unaided, it has been open to the students of all communities at the fees fixed by the State Authorities and imparting quality and standard education; and that the object of the assessee has been only education and hundred per cent of the income is being applied for educational purposes; - that since imparting education is a charitable purpose per se in terms of s. 2 (15) of the Act, prima facie the assessee is eligible for registration in terms of s. 12AA (1) of the Act; - that the DIT (E) had failed to appreciate that s. 12A was only an enabling provision ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ilable on records and also the case laws on which the rival parties have placed their strong reliance. The assessee has been running an educational institution and applied for registration u/s 12AA of the Act. On verification of details, the DIT (E) had observed that the Memorandum of Association and Articles of Association contained the following objects which, according to the DIT (E) confined for the benefit of a particular community: (a) to conduct on Christian principles and as an expression of Christian service by Tunbridge English High School. (b) To ameliorate the educational backwardness of Anglo Indians relating English as the medium of instruction to preserve the employment of English as such medium. 8.1 After consideration of the assessee's contentions and by placing reliance on the rulings of the Hon'ble jurisdictional High Court in the cases of (i) Ganjam Nagappa & Son Trust (supra); and (ii) Shubharam Trust referred supra and also dwelt with the Explanation 2 to s. 13 (1)(b) of the Act, the DIT (E) was of the view that the objects of the assessee - trust were for a specific community, which is being violative of the provisions of the said section....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on of Christian service by Tunbridge English High School. (d) To ameliorate the educational backwardness of Anglo Indians relating English as the medium of instruction to preserve the employment of English a such medium. 8.4 However, by its amendment dated 5.3.2011, the bye laws have since been amended to cater the needs of Anglo Indians and Christian as sections of the public and also for all others without distinction irrespective of caste, creed, community, physical or economic handicaps etc., This clearly brings out the secular character being adopted by the assessee trust. At this point of time, we would like to recall the findings of the Hon'ble ITAT, Delhi Bench in the case of Aggarwal Mitra Maqndal Trust (supra) wherein it has been observed that "An object beneficial to the section of the public is an object of general public utility and to serve a charitable purpose, it is sufficient if the intention is to benefit a section of public as distinguished from a specified individual. Thus, the provisions of section 13(1) are not directly relevant in this regard," 8.5 The Hon'ble jurisdictional High Court in the case of DIT v. Garden City Educational Trust [2011] 330 IT....