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2018 (12) TMI 1887 - AT - Income TaxApplication u/s 80G(5) rejected - charitable activity u/s 2(15) - assessee trust incurred expenditure more than 5% of religious nature - CIT(E) granted registration to the assessee society u/s 12AA - assessee has incurred certain expenses for upkeep and maintenance of the temple premises - HELD THAT:- It is not the case of the Revenue that the assessee society is governed by section 80G(5)(ii) and has in its instrument/object any provision for the transfer or application of the whole or any part of the income or asset for any purpose other than a charitable purpose. It is also not the case of the Revenue that it is for the benefit of any particular religious community or caste and any of its objects include any object the whole or substantially the whole of which is religious in nature. In view of the same, the provisions of section 80G(5B) cannot be invoked in the instant case and the order of the ld CIT(E) deserve to be set-aside on this ground itself. In terms of the nature of the Mandir Pooja expenses, it is noted that the said expenditure has been incurred in respect of an 100 years old mandir situated at village Jogalsar where the pooja is performed regularly by the locals at their expenses however, certain expenses in terms of upkeep and maintenance of the temple premises, distribution of prasad, etc is contributed by the assessee society. It has been stated that the contributions have been made to keep alive the interest of the locals in the said old heritage temple which is ancillary to assessee society’s main object to preserve and promote such heritage temple buildings. The temple is visited by all locals irrespective of their religion, caste, creed or gender and the temple premises is also used for various social and festival gatherings. The line of distinction between religious and charitable purposes is very thin and no water tight compartment between the two activities can be very established. In the facts of the present case, we donot believe that where the assessee has incurred certain expenses for upkeep and maintenance of the temple premises and distribution of prasad to public at large, it would be an activity related to a particular religion or community and the expenses so incurred would be in nature of religious expenses. In case of Umaid Charitable Trust [2008 (5) TMI 232 - RAJASTHAN HIGH COURT] has held that unless objective of the assessee society is for spending its income for a particular religion and it is so found in the trust deed, the Revenue cannot reject the application seeking registration under section 80G merely because the assessee has incurred certain expenses for upkeep and maintenance of the temple premises and distribution of prasad to public at large We hereby direct the ld CIT(E) to grant the necessary registration u/s 80G to the assessee society. - Decided in favour of assesee.
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