TaxTMI 
TaxTMI 
2017 (10) TMI 241
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....gious trust vide order issued by the ld CIT(E) dated 16.09.2016. The assessee trust subsequently moved an application before the ld CIT(E) on 22.12.2016 seeking approval under section 80G of the Act. 3. The ld. CIT(E) in his order stated that while considering the application u/s 80G, the nature of activities undertaken by the trust are to be examined so as to ascertain its charitable character. In this regard, on perusal of the Income & Expenditure account of the assessee trust for the F.Y. 2014-15, it was observed by the ld CIT(E) that the assessee trust has incurred following expenditure which are of religious nature:- S. No. Particulars Amount (Rs) (i) To Expenses of Jat Chaitra 2014 27,30,290/- (ii) To Expens....
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....t has incurred expenses of religious nature exceeding 5% of total income. Thus the trust does not qualify for approval u/s 80G. In the light of the above facts, the application filed in form No. 10G seeking approval u/s 80G was rejected. 6. During the course of hearing, the ld AR submitted that the assessee trust has been granted registration under section 12AA of the Act as charitable cum religious trust and has been running schools, hospitals, dharamshala and also maintenance of temple known as Kaila Devi Ji Temple. It was accordingly contended that the ld CIT(E) was therefore not correct to hold that the predominant activity of the trust is religious in nature. 7. The ld. AR further submitted that the main expenses as mentioned by ....
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....i Temple, also runs schools, hospitals, etc which are charitable in nature. In light of the same, can it be said that the activities of the assessee trust are religious in nature or predominantly religious in nature which doesn't warrant registration under section 80G of the Act. On perusal of the order of the ld CIT(E), we donot see any basis for arriving at the conclusion that the activities of the assessee trust are predominantly religious in nature except for few expenditure heads which are held to include expenditure incurred towards religious activities. In this regard, the ld AR has contended that the expenses incurred on mela Jat Chatra 2014 and 2015 are predominantly on maintenance, cleanliness and on staff expenses and the same ca....
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.... and renovation of Lord Vishnu's temple does not disentitle the petitioner trust from renewal of its exemption certificate under section 80G of the Act. The line of distinction between religious purposes and charitable purposes is very thin and no water tight compartment between the two activities can be very wellestablished. Unless objective of the charitable trust in question itself is for spending 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 Act merely because one particular expenditure is for an activity which may be termed as spending for a particular religion. In the present case the repair and re....
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.... Jew's case (supra). 32. This Court does not see any leaning in favour of any particular religion in trust deed of the petitioner-trust and therefore, once such exemption was granted to the petitioner trust, upon scrutiny of its application and it held the field for at least three years as is shown by the impugned order itself and trust deed indicates that said trust was constituted long back on 27-8-1963 and has been carrying on such charitable activities, this Court finds no justification for rejecting its renewal under section 80G of the Act which is a matter of right. The conditions of section 80G(5) read with Explanation 3 do not stand violated in the present case. 33. The learned counsel for the revenue relied upon the decision ....
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....e has been clearly wrongly applied by the learned CIT(A) in the present case. In Sri Marudhar Kesari Sthanakwasi Jain Yadgar Samiti Trust's case (supra) also relied upon by the learned Counsel for the revenue, the facts of the case were distinguishable in the said case. Thus, the judgments cited and relied upon by the learned Counsel for the revenue are distinguishable on facts and do not support the case of the respondents. Since the law in the case of Upper Ganges Sugar Mills (supra) was laid down while dealing the case of deduction under section 80G of the Act in the hands of donor so also in the case of Sri Marudhar Kesari Sthanakwasi Jain Yadgar Samiti Trust (supra) by this Court, those judgments do not advance cause of the revenue. On....