TaxTMI 
TaxTMI 
2018 (2) TMI 732
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....ome Tax as clarified CBDT, vide circular No 14/2006 dated 28.12.2006. 4. The Learned Commissioner has grossly erred in holding that the object of the appellant trust Viz., to maintain, establish, run, develop, improve, extend grant donate for old age home and home for deaf and dumb, and also to establish and maintain, run, improve extend, grant, donate for hospitals; to help the poor and needy and the deserved in general and especially in respect of their food, clothing, providing shelter and health including all types of medical aid and payment of hospital charges etc., and also to conduct marriages including mass marriage" does not qualify to be categorized as a "religious trust" . 5. The Learned Commissioner ought to have been guided by the ratio of the decision on the Hon'ble High Court of Delhi in the case of Delhi CIT (E) Vs. Bhagwan Shree Lakshmi Naraindham Trust, whose target groups are windows, orphans, old and infirm people, destitute, illiterate, handicapped, mentally retarded, providing food and shelter to poor and needy, night shelter, nari-niketan, mahila ashram, weaker sections and all other groups who can be included in the phrase in need of physical, ment....
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....wing decisions, wherein, under similar circumstances, Hon'ble High Courts/ ITAT have held that such voluntary donations were exempt and outside the ambit of section 115BBC of the Act. * ITAT Lucknow in the case of ITO-11(3) Lucknow Vs. Saraswathi Education Charitable Trust. * Bombay High Court in the case of DIT(E) Vs. Bombay Panjrapole Trust. * Hon'ble High Court of Delhi in case of Delhi CITE) Vs. Bhagwan Shree Lakshmi Naraindham Trust. Copies of the above decision are enclosed as Annexure - B 5) The LAO, is not justified in failing to appreciate that the Appellant had spent and utilized the entire ( 100%) donations/revenues received during the year towards charitable purpose and consequently ought to have applied provision of section 11 and excluded the same from the computation of "Total income". For the above additional grounds and such other grounds that may be urged at the time of hearing, with kind permission, the Appellant humbly prays that you Honour may kindly be pleased to allow the appeal in the interest of Justice. 4. It was submitted by ld. AR of assessee that the issue in dispute is squarely covered in favour of the assessee by various ju....
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....at one of the objects of the assessee trust is to help the poor and needy and the deserved in general and especially in respect of their food, clothing, providing shelter and health including all types of medical aid and payment of hospital charges etc., and also to conduct marriages including mass marriage. 8. Now in the light of these facts, I examine the applicability of the judgment of Hon'ble Delhi High Court rendered in the case of CIT(E) Vs. Bhagwan Shree Laxmi Naraindham Trust (supra). Para 2 of this judgment is relevant because it contains the objects of that trust. Para 5 of this judgment is also relevant and hence, both these paras are reproduced herein below for the sake of ready reference.:- "2. The Assessee, Bhagwan Shree Laxmi Narain Dham Trust („Trust‟), was accorded registration under Section 12A of the Act on 20th May 2005. The Assessee-Trust was set up on 30th December 2002 to carry out various charitable, spiritual and religious objects as set out in the trust deed. Some of the objects of the Trust as set out in the Trust Deed are as under: (i) To establish, promote, set-up, run, maintain assist finance, support and/or help in setting up and/or....
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....ligious trust, a trust allegedly imparting spiritual knowledge was consequently not contemplated as an exception by the Legislature as much as it consequently is barred to claim exemption vis-a-vis the anonymous donation." The ITAT held that the "said aim has to be understood in the context of and read along with the other objects of the trust whose target groups are widows, orphans, old and infirm people, destitute, illiterate, handicapped, mentally retarded, providing food and shelter to poor and needy, night shelter, nari-niketan, mahila ashram, weaker sections and all other groups who can be included in the phrase 'in need of physical, mental and financial help." Further the ITAT held that the "objects of the Trust and the context in which spiritual lectures espousing the philosophy, i.e., the spirituality of the major and predominant religious of the country needs to be considered in the light of the well-accepted and well- known fact that all the major religious of the world with one voice eulogies the importance of taking care of the old, infirm, disabled ......." Accordingly, it was held that the Revenue had incorrectly applied Section 115BBC to the facts of the Assesse....