TaxTMI 
TaxTMI 
2014 (1) TMI 1192
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....T quoted three of the objects of the society in the impugned order and found that dominant objects of the assessee are for the benefit of Agarwal Community only. It was also noticed that during the financial year 2011-12, the assessee society earned income of Rs.17,96,148/- and incurred expenditure of Rs.20,74,763/- in organizing "Shree Maharaja Agrasen Jayanti etc.", the activities meant for Agrawal community. The other expenses shown by the assessee society were for donation, website expenses, stationery, bad debts, bank charges, misc. expenses, salary expenses and scooter expense. It was, therefore, evident that the assessee society has incurred expenses mainly on organizing Shree Maharaja Agrasen Jayanti etc. and other expenses incurred by it are not related to any charitable activity. No expenses on other objects have been made or incurred on establishing hospitals, Dharmshalas, libraries, schools, programs for women and young men or to help widows. No documentary evidence in support of activities of general public utility was furnished by the assessee society. The ld. CIT, therefore, found that no charitable activities for general public utility have been carried out by the a....
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....shment of hospital, Dharamashala, library etc., but the assessee since its inception have not carried out any such activities meant for the general public. Since in the case of the assessee society, nothing has been provided for providing relief to the poor, education or medical relief. Therefore, the last provision provided in section 2(15) of the IT Act in the definition of "charitable purpose" will be considered, i.e., "advancement of any other objects of general public utility". The ld. CIT has specifically noted in the impugned order that during the financial year 2011-12, the assessee has earned income of Rs.17.96 lacs and incurred expenditure of Rs.20.74 lacs in organizing Shree Maharaja Agrasen Jayanti meant for Agarwal community only. The ld. counsel for the assessee during the course of arguments did not contradict this finding of fact recorded by the ld. CIT in the impugned order. It is, therefore, clear that in the preceding year of making registration application, the assessee has mainly organized Shree Maharaja Agrasen Jayanti meant for Agarwal community only. Therefore, it could not be treated having any charitable purpose for advancement of any other objects of gene....
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....ritable in nature or the assessee carried out genuine activities in order to achieve its objects. 6. The ld. counsel for the assessee pointed out from the paper book the balance sheet and income & expenditure account and submitted that the assessee has already established Dharamashala and one more Dharamashala is also in process, on which huge amount has been spent. Therefore, running of Dharamashala is meant for general public. The ld. counsel for the assessee, however, admitted that no list of occupants in any Dharamashala was furnished before the ld. CIT and no such details have been furnished in the paper book. Therefore, it is difficult to believe whether running of Dharamashala by the assessee society was meant for general public. Hon'ble M.P. High Court in the case of Shri Dhakad Samaj Dharamshala Bhawan Trust v. CIT [2008] 302 ITR 321 in para 7 & 9 held as under : "7. While it is true that the CIT in declining the registration has taken into account certain extraneous consideration such as Dhakad caste also exists in Rajasthan, Maharashtra and Uttar Pradesh and includes certain other castes which are not recognised as other backward classes which ....
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....ons from the Samaj and outsiders. It is not disputed that though the provision has been made for charging a token amount from the persons belonging to Dhakad Samaj, the charges for stay in the case of persons not belonging to the Samaj are many times the charges for the persons belonging to the Samaj. Merely because the accommodation created is in a religious place, it cannot be said that providing Dharamshala is for religious purposes. There should be something more to suggest its nexus with the religious or charitable purpose. It may not be with an intention to make money, but at the same time it does not fulfill the requirement of s. 11. Under these circumstances, we find that the registration declined by the CIT and affirmed by the Tribunal , does not suffer from any infirmity, patent or latent. Thus, we answer the question against the appellant and in favour of the respondent and this appeal is dismissed." 6.1 Since Hon'ble Allahabad High Court and M.P. High Court are the jurisdictional High Courts of Agra Bench of Tribunal, therefore, we are bound to follow the decision of Hon'ble M.P. High Court as quoted above. Merely because Dharamshala is created in religious place at Ma....