2008 (11) TMI 348

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....he petitioner-trust made a donation of Rs.71,000 to one Oswal Chhatrawas, Jodhpur, out of its income of Rs.6,90,250 for the period ended on March 31, 2004. The learned Commissioner was of opinion that the purpose of the said donee-institution being apparently of religious nature and for a particular community, donation to such an institution could not be considered as expenditure for charitable purpose; and, while finding that the petitioner-trust spent more than 5 per cent. of its total income on religious purpose and while relying on the decision of the hon'ble Supreme Court in the case of Upper Ganges Sugar Mills Ltd. v. CIT [1997] 227 ITR 578, the learned Commissioner came to the conclusion that the petitioner has not fulfilled the requ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tion of more than 5 per cent. of income for renovation of temple would not by itself disentitle a trust for renewal of exemption on the ground of violation of section 80G(5B). 4. Having regard to the facts and circumstances of this case and the nature of the impugned order passed by the Commissioner of Income-tax, this court is satisfied that such an order cannot be sustained and the matter would definitely require reconsideration by the Commissioner in the light of the view taken by this court in Umaid Charitable- Trust's case [2008] 307 ITR 226 that a single instance of donation of more than 5 per cent. of income for renovation of temple would not by itself disentitle the trust from claiming the exemption particularly when there is no ....