2016 (2) TMI 569 - AT - Income Tax

Assessee trust's registration petition granted under Section 80G(5) for charitable activities

Shri Yamunaji Mandir, Trust-Moviya Versus Commissioner of Income Tax-I

The tribunal allowed the assessee trust's registration petition under Section 80G(5), directing the CIT(E) to grant registration for the relevant previous ... Registration petition u/s. 80G(5) denied - Section 12AA registration - whether the assessee can be held to be a religious trust not entitled for 80G registration or not. We have already summarized arguments of both the parties? - Held that:- We take into account the assessee's objects and activities performed, draw strength from co-ordinate bench decision hereinabove and hold that the same are not expressed to be for benefit of a particular religious community or caste. It is to be seen that the assessee has provided kites for distribution in general public, carried out free medical check-up, distributed provisions, run music school, planted trees, provided lunch to children, started library, supplied food and clothes to flood victims, carried out dental check up, lunch for orphanage, paid needy children fees, offered free medical aid to poor for treatment of cancer, free check up diabetes and blood pressure, organize teaching class, and distributed books. The paper books comprise of photographs and letters which have gone un-rebutted in the course of argument. We quote all this material and findings on record to hold that the assessee is not an institution expressed to be for the benefit of any particular religious community or caste u/s. 80G(5)(iii) or having any purpose the whole or substantially the whole of which is of religious nature under explanation 3 therein. We accept assessee's arguments and reject those raised at Revenue's behest. The assessee's registration petition u/s. 80G(5) succeeds accordingly. - Decided in favour of assessee Issues Involved:1. Denial of Section 80G(5) registration to the assessee trust.2. Determination of whether the trust's activities are of a religious nature.3. Consideration of whether the trust benefits a particular religious community or caste.Issue-wise Detailed Analysis:1. Denial of Section 80G(5) Registration to the Assessee Trust:The assessee's sole substantive ground challenges the CIT(E)'s order denying it Section 80G(5) registration. The assessee, a trust, already enjoys Section 12AA registration since 21-08-2014. The CIT(E) found the trust's objects to include religious activities such as puja of bhagwan, religious discourses, bhajans, regular satsang, and maintenance of haveli (mandir), concluding it to be of a purely religious nature and thus not entitled to the impugned registration. The assessee argued that its objects and activities are charitable in nature and not meant for the benefit of any particular religious community or caste.2. Determination of Whether the Trust's Activities are of a Religious Nature:The tribunal reviewed the trust's income and expenditure account and noted that the assessee had not spent any amount on religious activities in the accounting year ending on 31-03-2015. Section 80G(5B) provides that an institution which incurs expenditure of a religious nature not exceeding 5% of its total income is deemed eligible for Section 80G benefits. Since the assessee had not spent any amount on religious activities, the tribunal directed the CIT(E) to grant the assessee Section 80G(5) registration for the relevant previous year.3. Consideration of Whether the Trust Benefits a Particular Religious Community or Caste:Section 80G(5)(iii) stipulates that registration should not be granted if the institution is for the benefit of any particular religious community or caste. The tribunal observed that the trust's objects did not express any benefit for a particular religious community or caste. The tribunal referred to the Shiv Mandir, Dev Sthan, Panch Committee Sansthan vs. CIT case, which held that activities such as maintaining temples and celebrating festivals do not necessarily constitute religious activities. The tribunal also cited the Umaid Charitable Trust vs. Union of India case, which held that repair and renovation of a temple do not imply expenditure for a particular religion. The tribunal concluded that the assessee's activities, including free medical check-ups, distribution of provisions, running a music school, tree planting, and providing lunch to children, were charitable and not for the benefit of any particular religious community or caste.Conclusion:The tribunal accepted the assessee's arguments and rejected those raised by the Revenue. The assessee's registration petition under Section 80G(5) was allowed, and the CIT(E) was directed to grant the registration for the relevant previous year. The tribunal emphasized that the trust's activities were charitable and not for the benefit of any particular religious community or caste, and thus eligible for Section 80G(5) registration. The appeal was allowed, and the order was pronounced in the open court on 18.1.2016.