TaxTMI 
TaxTMI 
2014 (1) TMI 401
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....ome Tax (Exemption), Kolkata has erred in law as well as on facts in not granting registration u/s.12AA of the Income Tax Act, 1961. 2. The Learned Director of Income Tax (Exemption), Kolkata has erred in holding that in absence of document evidencing creation of legal entity, Waqf cannot be registered u/s.12AA though indenture dated 09.07.1920 was submitted during the proceedings. 3. Without prejudice to the above ground, even if it is held that indenture dated 09.07.1920 was not relevant document, the existence of Waqf can be proved from other evidences. 4. The Learned Director of Income Tax (Exemption), Kolkata has erred in holding that the Appellant was not entitled to exemption u/s.11 of I.T. Act, 1961 as the Appellant was not broug....
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....of the authorities below. We have also deliberated on the judicial pronouncements cited by the ld. A.R., in the context of factual matrix of the instant case. From the records, we found that the assessee had applied for registration under section 12A. Alongwith the application, the assessee had filed (i) certified copy of the instrument under which the trust/institution was created/ established, (ii) certified copy of document evidencing the creation of the trust or the establishment of the institution, (iii) three copies of audited accounts of the trust/institution for the latest three years. The objects of the trust were as under: 1. To advance, promote, propagate and* preach the religion of Islam amongst the Dawood Bohras in conformity ....
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....which were properly replied by the assessee, vide letter dated 05.09.2012, as under: 1. Shia Dawoodi Bohra Jamaat Waqf (Kolkata), earlier known as Dawoodi Bohra Community Wakf, was created vide Indenture dated 9th July, 1920. It was subsequently enrolled with the Office of the Commissioner of Wakfs, West Bengal, Kolkata on 21-11- 1979. The name of the Wakf was amended to Shia Dawoodi Bohra Jamaat Waqf (Kolkata) which was noted in the records of the Wakf Register maintained by the Board of Wakfs, West Bengal. The copies of the Indenture dated 9-7-1920, Enrolment certificate dated 18-12-1979 and the letter dated 5-1-2011 from the Board of Wakfs, West Bengal are already fi1ed along with the application. The original of the Indenture dated 9-7....
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....the time being in force". We may also point out that any property (movabl or immoveable) that comes into the possession of the Wakf is permanently dedicated in to ALLAH arid is.thus irrevocable. 11. The Wakf is not registered under FCRA. 12. The Wakf has not received any foreign contribution. 13. The Wakf is not running any business activities. 14. The Wakf is purely and solely a religious institution and all its expenditure are on religious activities only. 7. After carefully going through the documents attached with application filed u/s.12AA, reply filed on 5.9.2012 and the other materials placed on record, we found that the assessee, Shia Dawoodi Bohra Jamat Waqf (Kolkata), which was earlier known as Dawoodi Bohra Community Wakf wa....
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.... by Customs and tenants of Dawoodi Bohra community well before the enactment of the Income Tax Act, 1961. As the Waqf is existing prior to Income-tax Act, 1961, the object beneficial to a section of the public is an object of "general public utility". To serve as a charitable purpose, it is not necessary that the object must be to serve the whole mankind or all persons living in a country or province. It is required to be noted that even if a section of the public is given benefit, it cannot be said that it is not a trust for charitable purpose in the interest of public. It is not necessary that the public at large must get the benefit. Looking to the scheme of the trust and applying the proposition of law as laid down by the Hon'ble Suprem....
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....to benefit the whole mankind, it will be sufficient if the object is beneficial to a section of the public, which, in our case, is Muslim religion. After going through the audited balance-sheet, audited accounts of the assessee for the last three years, we found that no part of the income or property of the trust was used or applied directly for the benefit of any person, referred in subsection (3) of section 13. No funds of the trust were invested or deposited otherwise than in any one or more of the forms or modes specified in sub-section (5) of section 11. 8. We have also gone through the provisions of section 6 and 44 of Bengal Waqf Act, 1934 and also verified copies of orders of DIT(Exemption), Mumbai, granting registration under sect....