Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2019 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (11) TMI 1305 - HC - Income TaxExemption u/s 11 and 12 - religious activities - HELD THAT:- As regards the findings pertaining to withdrawal of exemption under Section 11 of the Act is concerned, it has been observed that the reasons assigned by the AO were based on presumption, and the basis of invoking Section 13(1)(c)(ii) was completely misplaced and contrary to the scheme of the Act relating to the taxation of charitable or religious organisations. The addition of ₹ 50 lacs as undisclosed income, being unexplained expenditure of samagams has been held to be contrary to the provisions of the Act as Section 68 has no application on taxation of religious and charitable organisation, because of a specific provision – Section 115BBC, which governs taxation of all anonymous donations. On a perusal of the order of this Court in [2015 (9) TMI 558 - DELHI HIGH COURT] it emerges that after verifying the objects of the Trust and the activities carried out by the assessee, this Court held that the activities undertaken by the assessee can be included in the broad conspectus of religious activities and in the context of Hindu Religion, such activities cannot be confined to activities incidental to a place of worship like a temple. The findings of the Tribunal on this aspect, do not call for any interference. The observations of the Tribunal vis-a-vis disallowances of 1/3rd expenditure for telecast of samagams, are reasonable and they do not warrant any interference. There is no evidence on record to construe that the GurudevJi “has derived any personal benefit” which would justify the Revenue to invoke the provisions of Section 13(1)(c)(ii) of the Act to deny assessee the benefit of the expenditure.
|