TaxTMI 
TaxTMI 
2015 (8) TMI 1083
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....ejected since its objects as well as activities are predominantly religious and since the religious expenses in all the 3 years in respect of which statement of accounts have been submitted exceeded 5% of the total income/receipts which is violative of the provisions of sub-section (5B) of section 80G of the I. T. Act. 4. The assessee filed the statement of accounts for the year ended 31-03-2012, the details of donations received during the said year, copy of change report submitted in the office of the Charity Commissioner etc. It was submitted that the main objects of the assessee trust are to maintain the temple of Lord Aranyeshwar which is owned by the Government of Maharashtra, to perform pooja of the Lord and to celebrate various utsavs. The Ld. CIT noted that the trust deed has a few charitable objects too. However, the main sources of income of the applicant trust are poojas and utsavas and the net income is used for maintenance of the temple building. 5. On being confronted by the Ld. CIT it was submitted that the religious expenses during the year ended 31-03-2010, 31-03-2011 and 31-03-2012 were in excess of the 5% of the total receipts is prima-facie correct, however, ....
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.... already made to the applicant's reliance on the decision of the Hon'ble Tribunal in the case of Shri Gurudev Ranade Samadhi Trust Vs. CIT, Belgaum. I am afraid, the above reliance is a misplaced one. In the cited case the assessee had not carried out any religious activity. It also did not have any temple. Its objects were to commemorate the sacred memory of Shri Gurudev Ranade and to spread his spiritual teachings by publishing articles and books, by arranging lectures and seminars etc. Thus, the facts in the cited case were fully different from the facts in the present case. Hence, the cited decision would not apply. 6. For the detailed reasons stated hereinabove, and in particulars as the applicant trust has contravened the provisions of sub-section (5B) of section 80G of the Income-Tax Act, 1961, its application in Form No.10G seeking approval u/s.80G(5) is hereby rejected." 7. Aggrieved with such order of the CIT the Assessee is in appeal before us with the following grounds : "1. The Ld. CIT erred in rejecting the assessees application for Grant of approval u/s.80G of the Income Tax Act, 1961. 2. Reasons assigned for rejection are wrong, insufficient and contrary to ....
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....nses is less than the 5% of the total receipts. She accordingly submitted that both factually and legally the assessee is entitled to get the benefit of section 80G(5). She also relied on the decision of the Nagpur Bench of the Tribunal in the case of Shiv Mandir Devastan Panch Committee Sanstan Vs. CIT reported in 150 TTJ 452 (Nagpur). 10. The Ld. Departmental Representative on the other hand strongly supported the order of the CIT. He submitted that the activities of the assessee trust are religious in nature. The objects of the trust are mixed. However, the Brahmins have been employed for pooja etc. for and on behalf of the Devasthan. Therefore, the expenses of Honorarium to the Brahmins cannot be excluded from the pooja expenses. He accordingly submitted that the order of the CIT being in order should be upheld. 11. We have considered the rival arguments made by both the sides, perused the order of the Ld. CIT and the Paper Book filed on behalf of the assessee. We have also considered the various decisions cited before us. We find the Ld. CIT in the instant case rejected the application for grant of approval u/s.80G on the ground that the objects as well as activities of the ....
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.... no watertight compartment between the two activities can be established. Unless the objective of the charitable trust in question itself is to spend its income for a particular religion and it is so found in the trust deed, the Income-tax Department cannot reject the renewal of the trust as charitable trust under section 80G of the Incometax Act, 1961, merely because one particular expenditure is for an activity which may be termed as spending for a particular religion. A certificate was granted approving the petitioner-trust under section 80G for a period from April 1, 2001, to March 31, 2004. On an application for renewal of the approval in the prescribed form, the Commissioner held that the trust was not entitled to approval on the ground that it had incurred expenditure exceeding five per cent, of its total income of the year 2004 on a particular religion. On a writ petition against the refusal to renew the approval. Held, allowing the petition, that there was no clause in the petitioner's trust deed which indicated that income of the petitioner-trust was to k applied wholly or substantially for any particular religion. Nothing had been pointed out in the order of the Co....