- (1.)Leave granted. These appeals arise out of the common judgment and order passed by the High Court of Madhya Pradesh at Indore in Income Tax Appeal No. 112 of 2008 and other appeals dated 22.06.2009. By the impugned judgment and order, the High Court has concluded, firstly, that since the Income Tax Appellate Tribunal (for short 'the Tribunal') has recorded a finding of fact that the Respondent herein is a public religious trust, in exercise of its powers under Section 260A of the Income Tax Act, 1961 (for short 'the Act') it would not be interfering with such a finding of fact and secondly, that the Respondent being a public religious trust, the provisions of Section 13(1)(b) would not be applicable to it and therefore, dismissed the appeal filed by the Revenue confirming the orders passed by the Tribunal, dated 28.03.2008.
(2.)Propter commoditatem, we would refer to the conspectus of facts in the lead case for the disposal of the instant batch of appeals. The Respondent is a registered Public Trust under the M.P. Public Trusts Act, 1951. The Respondent had filed an application for registration before the Commissioner of Income Tax (for short "the Commissioner") as envisaged under Section 12A read with Section 12AA of the Act for availing the exemption under Section 11 of the Act. The Commissioner, after affording an opportunity of hearing to the applicants, had come to the conclusion that the Respondent is a charitable trust and since the object and purpose of the trust is confined only to a particular religious community the same would attract the provisions of Section 13(1)(b) of the Act and therefore, declined the prayer made for registration of the trust by his order dated 14.09.2007.
(3.)Aggrieved by the order so passed, the Respondent had carried the matter by way of an appeal before the Tribunal. The Tribunal after going through the objects of the Respondent-trust has come to the conclusion that the Respondent is a public religious trust as the objects of the trust are wholly religious in nature and thus, the provisions of Section 13(1)(b) which are otherwise applicable in case of charitable trust would not be applicable and therefore, held that the Respondent-trust is entitled to claim registration under Sections 12A and 12AA and accordingly, allowed the appeal and set aside the order passed by the Commissioner and further directed the Commissioner of Income Tax to grant registration under Section 12A read with Section 12AA of the Act to all the applicant-trusts.