2003 (10) TMI 7

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....herefore, in view of Explanation 3 to section 80G, the trust does not fall within the ambit of section 80G(2)(a)(iv) read with section 80G(5) so as to permit special deduction to donors to the said trust. Learned counsel for the petitioner urged that prior to this order, a trust was recognised as a trust wholly and substantially for charitable purposes, notwithstanding the purposes referred to in the order of the Commissioner of Income-tax. A very insignificant amount of its income has been spent on the religious purposes. The trust may be deemed eligible for deduction under section 80G(5), for its donors. Learned counsel for the petitioner placed reliance on the decision of the Supreme Court in Addl. CIT v. Surat Art Silk Cloth Manufact....

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.... of worship and prayer halls." This was construed by the Calcutta High Court to be a wholly religious purpose notwithstanding that the purpose was not restricted in its expense to a particular religion or to a sect of a particular religion, but was meant for all the religions in the world, and it was held that donations to such trust are not entitled to specific deduction under section 80G. Construing Explanation 3 to section 80G and considering the aforesaid decision of the Supreme Court in the Surat Art Silk case [1980] 121 ITR 1, the Supreme Court said as under: "Section 80G applies to donations to any institution or fund established in India 'for a charitable purpose'. 'Charitable purpose, for the purposes of the section, does ....

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....o read each and every object and not to consider the trust deed as a whole, there is no room to interfere in the conclusion reached by the Commissioner. The Commissioner has quoted object items Nos. 1, 2, 3, 4 and 5 and sub-clause 4 of other objects and also the preamble to the trust which goes to show that the petitioner-trust has its many objects which are wholly and substantially religious, therefore, the mere fact that insignificant amount has been spent on non-religious (sic) charity, does not entitle the donors to claim deduction under section 80G to it for the assessment period under question. However, before parting with the case, we may notice that since the judgment was delivered in Upper Ganges Sugar Mills Ltd. v. CIT [1997] 2....