TaxTMI 
TaxTMI 
2015 (9) TMI 558
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....te, set-up, run, maintain assist finance, support and/or help in setting up and/or maintaining and/or running schools, and other institutions orphanages, widow home, poor houses or other establishments of relief and/or help to the poor, old and infirm people. .... .... .... .... .... (vii) To arrange, establish, manage and supervise orphanages, old age homes, night shelters, hospitals, dharmshala, nariniketan and mahila ashram etc. (viii) To give spiritual lectures to mental disturbed person and spiritual lecture to all kinds of human beings. .... .... .... .... .... (xi) To do all other activities for the interest of the human beings to help in physical, mentally and financially. (xii) To give provide and/or render food, medicine and other help and/or assistance in any shape or form to the poor deserving and needy person. To give provide and/or render monetary and/or other help and assistance for the relief of persons and animals affected by natural and other calamities such as food, fire, famine, cyclone, earthquake, storm, accident, pestilence drought, cyclone, epidemic and the likes to give donations, subscriptions or contributions to institutions, establishmen....
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....rmed the action of the AO. THE CIT (A0 analysed inter alia Circular No. 14 issued by the Central Board of Direct Taxes (CBDT) explaining the scope of Section 115 BBC as well Section 2 (24) (iia) of the Act which defined 'voluntary contribution' and held: "After analyzing the Circular No. 14 and definition of voluntary contribution as per Section 2(24)(iia) of the IT Act, it is apparent that organization spreading the spirituality cannot claim that it is exempt as per Section 115BBC of the IT Act as statute is very clear in this regard. have gone through the relevant section and I have found that trust of institutions created or established wholly for religious purpose are exempt. The instant case has been found to be established for the purpose of spirituality as per its Trust Deed dated 30-12-2002, wherein, at object No. viii it has been written as under:- "To give spiritual lecture to mentally disturbed persons and spiritual lecture to all kinds of human being." From the object itself it is evident that appellant society's object is in the nature of spreading spirituality in the Society. So, it cannot be held as 'religious society'." 5. In the impugne....
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....r. Sawhney, even giving of spiritual lectures would not strictly qualify as a religious activity. 9. The question posed arises in the context of the anonymous donations received by the Assessee Trust and the view of the AO that such donations would not be exempt within the scope of Section 115 BBC of the Act since the activity of the Trust was 'spiritual' and not 'religious'. 10. It is useful in this context to recapitulate the CBDT Circular No. 14 has explained the scope of Section 115 BBC, introduced with effect from 1st April 2007, as under: "25.2. With a view to prevent channelisation of unaccounted money to these institutions by way of anonymous donations, a new Section 115BBC has been inserted to provide that any income of a wholly charitable trust or institution by way of anonymous donation shall be included in its total income and taxed at the rate 0 30 per cent. Anonymous donation made to wholly charitable and religious trusts of institutions, i.e. mixed purpose trusts of institutions shall be taxed only if it is for any university or other educational institution or any hospital or other medical institution run by them. Anonymous donation to wholly rel....
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....ts and at the same time would qualify as a charitable activity." (emphasis supplied) 13. What can constitute religious activity in the context of the Hindu religion need not be confined the activities incidental to a place of worship like a temple. The Supreme Court in The Commissioner, Hindu Religious Endowments, Madras v. Sri Lakshmindra Thirtha Swamiar 1954 AIR 282 SC held that "a religious denomination or organization enjoys complete autonomy in the matter of deciding as to what rites and ceremonies are essential according to the tenets of the religion they hold and no outside authority has any jurisdiction to interfere with their decision in such matters." It examined the scope of the protection under Article 25 and 26 of the Constitution and observed as follows: "14. We now come to Article 25 which, as its language indicates, secures to every person, subject to public order, health and morality, a freedom not only to entertain such religious belief, as may be approved of by his judgment and conscience, but also to exhibit his belief in such outward acts as he thinks proper and to propagate or disseminate his ideas for the edification of others. 17...What then are matte....