MEENA SAMAJ SEVA SAMITI TRUST,GANDHIDHAM vs. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

In this regard, you are requested to show cause as to why your application filed in Form 10AB, should not be rejected for the reasons discussed in the above para.

Further, you are requested to note that in case of non compliance/part compliance of said notice, the matter will be decided on the basis of facts/material available on record. Please note that this is a final opportunity and no requests for adjournment will be entertained.”

In response to the above notice, the assessee submitted before ld.CIT(E) that there are general objects of the trust and activities are undertaken for the upliftment of the general public and there is no inclination towards any particular caste, creed or religion. Though it is mentioned in the memorandum but the activities of the trust do not give preferences to any such religious nature. The trust undertakes activities, which are beneficial to the whole society at large and hence the application filed in Form 10AB should not be rejected.

However, Ld.CIT(E) did not consider the above assessee's reply and held that on plain reading of the objects of the trust, it is evident that the said objects are religious in nature involving religious awakening and hence, it clearly contravenes main condition of 80G(5) of the Act. The ld.CIT(E) noted that for the purpose of section 80G(5) of the Act, the trust can only have charitable purpose and no religious or religious-cum-charitable purpose is allowed thereunder. Further, the applicant has not filed any evidence establishing removal/amendment of its religious object. Therefore, there is clear violation of clause(ii) of section 80G(5) of the Act, which put a bar on granting approval under section 80G(5) of Income Tax Act, 1961 to the institution or fund whose instrument of constitution or rule thereunder provide for transfer or application at any time the whole or any part of its income or assets for any purpose other than a charitable purpose. In view of the above, it is quite clear that assessee trust is not established only for charitable purposes. Whereas the above referred provisions of section 80G of the Act makes it amply clear that the applicant/assessee has to be established only for charitable purposes and there is no transfer or application of funds for any purposes other than a charitable purpose, subject to concession granted under Sec. 80G(5B) of the Act. Therefore, Ld.CIT(E) has denied the approval under section 80G(5)(iii) of the Income-tax Act, 1961 (hereinafter referred to as “the Act') and also cancelled the provisional approval of the assessee-trust.

Aggrieved by the order of Ld.CIT(E), assessee is in appeal before us.

Shri Mehul Ranpura, Learned Counsel for the assessee, at the outset "Scheduled Tribe" that is, submitted that assessee-trust belong to "Meena/BhilMeena and falls in the definition of "Bhil- Meen". Therefore, as per Explanation (1) of Section 80G of the Act such Scheduled Tribe, assessee- trust, is not for the benefit of any particular caste or community. For this, the Ld. Counsel for the assessee took us through Explanation(1) of Section 80G(5) of the Act, which reads as follows: 80G. [(1) In computing the total income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section,- (6)[***] Explanation 1.-An institution or fund established for the benefit of Scheduled Castes, backward classes, Scheduled Tribes or of women and children shall not be deemed to be an institution or fund expressed to be for the benefit of a religious community or caste within the meaning of clause (iii) of sub-section (5)”

The Ld. Counsel for the assessee further took us through the Notification of the Government of India, wherein “Bhill- Meena” has been classified as Scheduled Tribe as per Explanation(1) of Section 80G(5) of the Act. The relevant notification is reproduced below:

Saonta, Saunta 44. Saur 45. Sawar, Sawara 46. Sonr.] _____________________________________________________________________________ ___ 1. Ins. by Act 29 of 2000, s. 25 and the Sixth Sch. (w.e.f. 9-11-2000). 2. Ins. by Act 30 of 2000, s. 24 and the Sixth Sch. (w.e.f. 15-11-2000) 3. Ins by Act 10 of 2003, s. 4 and the Second Sch. 185 Constitution (Scheduled Tribes) Order, 1950 (PART III.—Rules and Orders under the Constitution) PART IV.—Gujarat 1. Barda 2. Bavacha, Bamcha 3. Bharwad (in the Nesses of the forest of Alech, Barada and Gir) 4. Bhil, Bhil Garasia, Dholi Bhil, Dungri Bhil, Dungri Garasia, Mewasi Bhil, Rawal Bhil, Tadvi Bhil, Bhagalia, Bhilala, Pawra, Vasava, Vasave 5. Charan (in the Nesses of the forests of Alech, Barada and Gir) 6. Chaudhri (in Surat and Valsad districts) 7. Chodhara 8. Dhanka, Tadvi, Tetaria, Valvi 9. Dhodia 1 [Dhodi] 10. Dubla, Talavia, Halpati 11. Gamit, Gamta, Gavit, Mavchi, Padvi 12. Gond, Rajgond 13. Kathodi, Katkari Dhor Kathodi, Dhor Katkari, Son Kathodi, Son Katkari 14. Kokna, Kokni, Kukna *** 16. Koli Dhor, Tokre Koli, Kolcha, Kolgha 17. Kunbi (in the Dangs disrict) 18. Naikda, Nayaka, Cholivala Nayaka, Kapadia Nayaka, Mota Nayaka, Nana Nayaka 19. Padhar *** 21. Pardhi, Advichincher, Phanse Pardhi (excluding Amreli, Bhavnagar, Jamnagar, Junagadh, Kutch, Rajkot and Surendranagar districts) 22. Patelia 23. Pomla 24. Rabari (in the Nesses of the forests of Alech, Barada and Gir) 25. Rathawa 26. Siddi, [Siddi-Badshan] (in Amreli, Bhavnagar, Jamnagar, Junagadh, Rajkot and Surendranagar districts) *** 28. Varli 29. Vitolia, Kotwalia, Barodia [30. Bhil, Bhilala, Barela, Patelia 31. Tadvi Bhil, Pawra, Vasave 32. Padvi].

Therefore, Ld. Counsel for the assessee submitted that "Meena Samaj Seva Trust" is not for any particular community and caste, therefore the approval u/s 80G(5)(iii) of the Act should be granted to the assessee-trust.

On the other hand, Ld. CIT-DR for the Revenue submitted that the assessee- trust is not running any charitable activity but it is for religious purposes, only I for particular caste that is "Meena Samaj". Therefore, most of the objects are religious in a nature. Therefore, the registration should not be granted to the assessee-trust. In addition to this, the notification of the government in respect 6 of Scheduled Tribes, should be examined by the learned CIT(E), therefore, matter may be remitted back to the file of the learned CIT(E) for examination of the notification (referred by the learned Counsel for the assessee), and then after adjudicate the issue in accordance with law.

We have carefully considered the facts of the case, the submission of the Id. Counsel for the assessee and ld.CIT-DR for the Revenue and evidences on record. We note that the “Bhil-Meena/Meena” has been defined as a Scheduled Tribes, by the CONSTITUTION (SCHEDULED TRIBES) ORDER, 1950, the list of the same has been referred above. Therefore, we note that the assessee- trust was made for the purpose of Scheduled Tribes, (Bhil Meena), which is not for the purpose of special community and caste. Therefore, we direct the Ld.CIT(E) to examine the Government notification “CONSTITUTION (SCHEDULED TRIBES) ORDER, 1950," and if the assessee- trust falls in the definition of Scheduled Tribes, (Bhil Meena), the approval should be granted to the assessee- trust, under section, 80G(5)(iii) of the Income-tax Act, 1961, in accordance with law. The assessee is also directed to submit a copy of government notification(CONSTITUTION (SCHEDULED TRIBES) ORDER, 1950) before the learned CIT(E) and other relevant documents and evidences for approval under section 80G(5)(iii) of the Income-tax Act, 1961. It is needless to say that the assessee will be at liberty to adduce any evidences as deemed relevant before the ld.CIT(E) at the time of proceedings before him, in consequence to this order and the ld.CIT (E) shall allow the assessee, adequate opportunity of being heard and to make relevant submissions, and then pass a speaking order which is fair and judicious. For statistical purposes, the appeal of the assessee is treated to be allowed.

In the result, filed by the assessee is allowed for statistical purposes, in above terms.