TaxTMI 
TaxTMI 
TaxTMI 
2013 (8) TMI 1202
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....the file of DIT (Exemption) to consider in accordance with law. 2. DIT(E) while giving effect to the order of the ITAT, again rejected approval under Section 80G(5). The First objection of the DIT(E) is that Shri Sharma, Chairman and Managing Trustee has been occupying the premises of the trust without paying rent. 3. The next objection of DIT(E) is that temple exits in the premises of the trust which is involved religious activities. A temple of Goddess Sarawathi has been constructed inside the trust premises. DIT(E) concluded that expenditure are of religious in nature exceeds 5% of the income and also the assessee has not established reasonableness of providing house for rending to Mr. Sharma. Hence the assessee is not entitled to appr....
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..... Act. 4. The High Court of Punjab & Haryana in the case of CIT vs. Rajamale Educational Society reported in 65 DTR 307 held that once exemption u/s. 12AA was granted and the same was continuing, the CIT was not justified in denying approval under section 80G of the I.T. Act. 5. The High Court of Punjab & Haryana in the case of Sonepat Hindu Educational and Charitable Society vs. CIT reported in 278 ITR 262 held that the scope of enquiry by the CIT extend only to see the allowability of the application for exemption and not whether the income of the appellant would be taxable or not can not be determined at the time of granting recognition u/s. 80G(5) of the I.T. Act. 6. The Karnataka High Court in the case of DIT (E) vs. Internati....
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....ccount then there will be no benefit accruing to him, as fee payable to him is much more than the rent recoverable from him. The department has not established that the provision of rent free accommodation to Mr.Sharma is excessive and unreasonable having regard to the services rendered by him. 7. As regards temple in the trust premises, as pointed out by the assessee that goddess Saraswathi is accepted by people as god of wisdom and is only to support and encourage students. It is submitted temple was Saraswathi, Goddess of learning has been constructed by the students themselves by collecting monies among themselves. The object of the trust is not for carrying our any religious activity. In fact out of the expenses allocated by DIT(E) as....
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....clause stipulates that the Institution or the Trust must not be for the benefit of any particular religious community or caste. The words "religious community" means the group of people having a common religion or faith. The word "religion" means the belief in and worship to a superhuman controlling power, specially the personal god or gods, a particular system of faith and worship. It means the trust should not be for the benefit of any particular group of persons having the common belief in worshiping of superhuman controlling power or having common system & faith and worship. If the trust is for the benefit of any particular religious community, it would include the advancement, support or propagation of a religion and its tenants, it co....
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....e and may have a number of objects. If anyone of these objects is wholly or substantially wholly of a religious nature, the Institution or Funds falls outside the scope of section 80G and the donation to it will not make the donor entitled for the deduction under sec. 80G. The objects as per Explanation 3 must be wholly or substantially whole of which must be of religious nature The assessee has submitted all the evidence including the objects and how the expenditure has been incurred by it. The onus, in our opinion, gets shifted on the Revenue to prove that the assessee-trust is wholly or substantially for the religious purpose. There is no allegation on the part of the revenue that the whole or substantially whole of the object of the tru....