TaxTMI 
TaxTMI 
2009 (6) TMI 77
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....e Department under section 260A of the Income Act, 1961 ("the Act" hereafter), against the common order dated March 28, 2008, passed by the Income-tax Appellate Tribunal (ITAT) in I. T. A. No. 615/Ind/07-Dawoodi Bohra Jamat v. CIT [2009] 317 ITR (AT) 133 (Indore) and connected appeals. The appeal was admitted for final hearing on the following substantial questions of law: "1. Whether, in the facts and circumstances of the case, the Income-tax Appellate Tribunal is justified in holding that all the objects of the trust are religious in nature? 2. Whether, in the facts and circumstances of the case, of the Income-tax Act contrary to their own decision in the case of Dhakad Samaj Trust in I. T. A. No. 468/Ind/2003, dated November 24, 2003, and the hon'ble jurisdictional High Court in the same case?" 4. The controversy involved in appeal is about the entitlement of the respondent to get the registration under section 12A/12AA of the Act. The claim of the respondent is that it is a public religious trust having the objects solely religious in nature and, therefore, they are entitled to claim registration under section 12A/12AA of the Act; whereas the stand of the Department is....
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.... March 28, 2008. The Income-tax Appellate Tribunal allowed the appeals by holding that the respondent-trust are public religious trusts and the provisions of sections 13(1)(b) of the Act are not attracted, and, therefore, they are entitled to claim registration under section 12A/12AA of the Act. Aggrieved with the order of the Tribunal, the Department has preferred these appeals under section 260A of the Act which were admitted by this court on the substantial questions of law as mentioned above. 7. On the first question of law, learned counsel appearing for the appellant (Department) submitted that the Income-tax Appellate Tribunal has committed an error in holding that all the objects of the trust are religious in nature. As against this, the learned counsel appearing for the respondent submitted that question No.1 formulated by this court being a pure question of fact cannot be examined in this appeal. In other words, it was urged that question No.1 not being a substantial question of law within the meaning of section 260A ibid and, hence, it cannot be answered in this appeal. He further submitted that the Tribunal has committed no error in holding that all the objects of the....
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....-trust reproduced above dearly refer to the religion and are supported by reference made to different pages of Holy Quran. The learned counsel for the assessee referred to the true copies of several pages of Holy Quran written by two of the authors referred to above in which giving of food in days of hunger or orphan is considered as highly religious ceremony. Reference is also made that who will give to the people or poor then Allah will give them in return and, i.e., who will give loan then Allah will give double to them. Likewise, for helping the needy people for religious activities and to carry out religious activities or spend for good, spending wealth in the way of Allah, bestowing mercy, teaching were considered to be highly religious activities. On going through several true pages of Holy Quran written by the authors referred to above, we are satisfied that the learned counsel for the assessee was justified in contending that all the objects of the assessee-trust are solely religious in nature because each of them refers either to religious occasions, religious education or to religious activities. The learned counsel for the assessee also explained that the words 'Shariat....
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....t be treated as religious trust. The learned counsel for the assessee, however, submitted that there is no requirement under the law. The learned Departmental representative thus has failed to bring to our notice as to how it was mandatory to create mosque or roza for treating the trust to be religious trust in such an event … We have already observed above that all the objects of the assessee were religious in nature because the same are supported by the writings in Holy Quran and as such the assessee-trust following the directions from the Holy Quran on the religious occasions, religious education and religious activities for Dawoodi Bohra community, had been organizing various activities in pursuance with the objects of the trust and as such the decision cited by the Commissioner of Income-tax is clearly distinguishable on facts. 18. On consideration of the rival submissions and the material on record, we are of the view that the objects of the assessee-trust are solely religious in nature and as such the finding of the learned Commissioner of Income-tax in the impugned order that the objects of the assessee are charitable in nature is not justified. The findings of the ....
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....by an application under section 66(1) of the Act. If he has failed to file an application expressly raising the question about the validity of the findings of fact, he is not entitled to urge before the High Court that the findings are vitiated for one reason or another. Similarly, in another case, CIT v. M. Ganapathi Mudaliar [1964] 53 ITR 623 (SC), it has been pointed out that, even if the question referred to the High Court is regarding the existence of material to support a finding of fact arrived at by the Appellate Tribunal, the High Court should not act as an appellate court and consider whether the finding was justified or not." 13. In this appeal, the Tribunal on the basis of the evidence led by both the parties has recorded a finding that the respondent is a public religious trust. The appellant has neither assailed the aforesaid finding recorded by the Tribunal as perverse nor the counsel for the appellant has been able to point out any perversity in the said finding. Therefore, this finding is binding on this court. We, therefore, find no good reason to interfere with such finding of fact. 14. A perusal of the order of the Tribunal also indicates that the same iss....