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2014 (9) TMI 81 - AT - Income TaxNature of the activity carried on by Trust - Religious or Charitable - Interpretation of law – Applicability of section 115BBC – general public utility - charitable purpose u/s 2(15) - Held that:- The AO was of the view that the assessee is falling within the scope of “general public utility”- the tax authorities have completely misdirected themselves in considering the issue - since the assessee was engaged in spiritual lectures which according to their understanding of the context in which the explanation was offered was mistakenly and erroneously considered to be a bar to the assessee in claiming that the rigors of sec. 115BBC were not attracted - The conclusion has been arrived at by the tax authorities, the tax authorities have proceeded on a very narrow and incorrect understanding in holding that the assessee trust was engaged in spreading spirituality and since section115BBC only exempts religious trust, a trust imparting spiritual knowledge was consequently not contemplated as an exception by the Legislature as much as it consequently is barred to claim exemption vis-à-vis the anonymous donation. The objects of ameliorating their miseries, providing night shelter, self-help capability, knowledge distribution of food medicines etc coupled with solace in the name of God cannot be outrightly rejected and merely because the assessee is not limiting itself to disbursing food medicine, providing shelter etc and is also giving lectures on spirituality was not the kind of assessee contemplated under section 115BBC who was to be visited by the rigours of the said section. Lectures/discourses on the teachings of the prevalent and predominant religions of the country are claimed to have been given as would be found from the written submissions extracted in the impugned order which have also been reproduced from the impugned order in the present proceedings - during these lectures voluntary donations by the attendees have been made which constitutes the anonymous donations - the voluntary donations exigible to tax on the understanding that the assessee trust was not fulfilling the requirements of a public religious trust - the objects of the trust and the context in which spiritual lectures espousing the philosophy i.e. the spirituality of the major and predominant religions of the country needs to considered in the light of the well-accepted and well-known fact that all the major religions of the world with one voice eulogise the importance of taking care of the old, infirm, disabled, visited by misfortune etc. on account of some natural or man-made calamity, widowed, orphaned etc. and these discussions/lectures are not divorced from religion as mankind is exhorted in the name of God and saints to take care of the weak and the needy - the Revenue has incorrectly applied section 115BBC to the facts of the assessee’s case – thus, the objects of the trust have been considered vis-à-vis the relevant provision along with the Circular No.-14 and relying upon Cit, Ujjain vs M/s Dawoodi Bohara Jamat [2014 (3) TMI 652 - SUPREME COURT], the claim of the assessee deserves to be allowed – Decided in favour of Assessee.
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