The Director Of Income Tax (Exemption v. Jayaben Visanji Maru Foundation

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.920 OF 2011 The Director of Income Tax (Exemption)..Appellant. Versus Jayaben Visanji Maru Foundation ..Respondent. Mr.Suresh Kumar for the appellant.Mr.Pavankumar R Prarad for the respondent. CORAM : J.P. Devadhar &M.S. Sanklecha, JJ. DATE : 16[th] January 2013 P.C. : 1.Although several questions have been raised by the Revenue in this appeal, the basic question which arises in this appeal is whether the Tribunal was justified in holding that the objects of the respondent was charitable in nature and thus entitled to registration under Section 12-AA of the Income Tax Act, 1961 ? 2.According to the Revenue, the objects of the respondent are not charitable as clause (4) of the Trust Deed inter alia provides as under : “(4)(11)Addressing Housing needs of the needy interalia of construction and/or purchasing house / dwelling units and providing the same to needy at concessional rates or terms, for housing purposes. (12) To print books, pamphlets, handbills and or held lectures, seminars, exhibitions, etc. To open, form, establish, promote, set up, run, acquire, maintain, assist, finance, support and/or aid or help in setting up and/or aid or help in setting up and/or maintaining and/or running Swadhaya Hall, Satsangh Sabha Mandap or Temple or Spiritual Value...... (13) To prepare scheme for the residence of the needy people of the society and to give guidance and relief to the needy for their residence needs.” 3.The aforesaid objects, according to the Revenue, are commercial in nature, besides being vague. Therefore,, the Revenue urges that the order of the Commissioner of Income Tax (Exemptions) dated 31[st] March 2009 rejecting the application for registration under Section 12AA of the Income Tax Act, 1961 ('the Act') ought not to have been disturbed by the Tribunal by its order dated 10[th] December 2009. 4.The Tribunal in the impugned order has examined the Trust Deed in detail and recorded a finding in para 5.4 of its order that if the totality of all the objects are taken into consideration, then the objects of the respondent are charitable in nature. In particular clause (1) to (4) of the Trust Deed which provides for medical relief and help to the poor and deserving persons by providing monetary and/or non-monetary help, to provide livelihood and upliftment of the children amongst others would indicate that the object of the Trust is charitable in nature. The Tribunal relied upon the decision of the Madras High Court in the matter of Babulal Khinchand Trust reported in 243 ITR 79, wherein on similar facts it was held that where a property of the Trust is to be used for the purpose of needy and weaker section of the society and no profit is to be derived by the trustee, then the object of the Trust is charitable in nature is established. 5.We find that the Tribunal has, on examination of various clauses of the object of the Trust, concluded that the object is to provide relief to the needy and weaker section of the Society. Thus, registration under Section 12AA of the Act is to be granted. This finding of the Tribunal is a reasonable finding on the facts. 6.In view of the above, we see no reason to entertain the present appeal. Accordingly, the appeal is dismissed with no order as to costs. (M.S. Sanklecha, J.) (J.P. Devadhar, J.)