COMMSSIONER OF INCOME TAX, DISTRICT UJJAIN. (MADHYA PRADESH) Vs. PRESIDENT SETH MALUKCHAND HIRACHAND DIGAMBAR JAIN GOTH BEES PANTHI MANDIR DHARMIK AVAM PARAMARTHIK TRUST, BARNAGAR (MADHYA PRADESH)

JUDGEMENT

(1.) This appeal has been filed under Sec. 260(A) of the Income Tax Act, 1961(for short "the Act") by the Commissioner of Income Tax, Ujjain, assailing the order dtd. 31/5/2004 passed by the Income Tax Appellate Tribunal ( for short "the Tribunal/ITAT"), Indore, in ITA No. 97/Ind/2003 whereby the appeal filed by the assessee has been partly allowed by setting aside the order of Commissioner of Income Tax(CIT) dtd. 26/12/2022. The present appeal was admitted on the following substantial questions of law:-

(2.) The brief facts of the case are that one Seth Malukchand Heeranand in S.Y. 1840 constructed a temple for his family. 11 Persons hailing from Barnagar created a Trust for the temple and the property available with the temple was made a part of the Trust. A Trust deed was framed and got registered with the sub-Registrar on 26/9/1956 with certain objects. Thereafter, certain amendments were made in the Trust deed on 30/10/1989. The basic aim and object of the Trust was religious for the purpose of Digambar Jain Society and for their religious, cultural and social upliftment. As per Clause-5 of the Trust deed, it was the duty of the Trust to protect and manage the entire movable and immovable properties of temple and whenever necessary to extend and renovate the same from time to time. Vide Clause-12 of the deed, the Trustees were also empowered to constitute other rule, aim or planning for the progress of the Trust. As per Clause No.13, neither the Trustees nor any other person has any personal right over the movable or immovable property of the Trust nor would they be able to use the property of the Trust for their personal benefit but they will have their right on these properties in the capacity of Trustees only. Some amendments in the objects and in the procedures related to Trustees were carried out on 31/10/1989 and the amended Trust deed was got registered on 20/11/2001 under the provisions of Madhya Pradesh Lok Nyas Adhiniyam, 1951. In the said amended Trust deed, a new provision was introduced that all other persons will have also place in the Trust besides the Trustees mainly from the Digmabar Jain Beas Panthi Khandelwal Community.

(3.) Learned CIT rejected the application for registration on the following grounds:-