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2017 (11) TMI 1667 - RAJASTHAN HIGH COURTExemption u/s 11 - allowability of expenses incurred for religious purposes - Income from property held for charitable or religious purposes - Held that:- Though a Christian organization, its Memorandum of Association is unambiguous and categorical that it was created for the benefit of all people, irrespective of caste, creed or religion and it has been mentioned above that there is evidence to show its beneficiaries include Hindus and Muslims. At the same time, there is no evidence to show that during the period under consideration the appellant incurred expenses for purposes other than its stated objectives. Even if its is held to be a religious organization, it is eligible for registration and entitled to benefits of section 12A Assessee being a religious and charitable society, the expenses incurred by it relating to both religious as well as charitable activities were for the purpose for which the society was established and, therefore, the expenses incurred for religious purposes could not be disallowed for the purpose of exemption u/s 11 Taking into consideration the fact that the matter which is pending before the High Court, the observations made by the tribunal are just and proper. 12AA registration could not have been given on the basis which is stayed by the High Court. In that view of the matter, the issue is answered in favour of the assessee and against the department.
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