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2023 (4) TMI 135 - AT - Income TaxRegistration u/s.80G denied - As expenditure for Religious activities are more than 5% the appellant has not satisfied conditions laid down in Section 80G(5) - assessee's main object is to construct and maintain Shri Sai baba temple - What is Religious? - HELD THAT:- Dictionary meaning is that Religious means relating to or manifesting faithful devotion to an acknowledged ultimate reality or deity. Rituals and observances, ceremonies and modes of worship are regarded as integral parts of religion. Performing Rituals, Ceremonies, worships, Poojas are nothing but religious activities. For the Shri Saibaba Followers Shri Saibaba is a God Incarnate. In the case before us, the assessee have a Shri Saibaba Temple, the assessee has spend more than 5% of its income on the activities like Pooja, Prasad, Mandir Jirnodhar etc. In the light of the dictionary meaning of the word religious activity given above and the general understanding of the word religious activity, these activities are nothing but religious activities as all the members of the assessee are Shri Saibaba Devotees and the pooja, rituals performed are nothing but Religious activities. The main aim of the assessee trust is to construct and maintain the Shri Saibaba Memorial. Distinguishing Case law relied by Assessee - Assessee relied upon ARANYASHWAR DEVALAYA TRUST VERSUS CIT-1, PUNE [2015 (8) TMI 1083 - ITAT PUNE] case wherein as held that the conditions prescribed in section 80G(5B) are satisfied as the expenses on religious activities i.e. pooja expenses are less than 5%. However, in the instant case the expenses incurred on religious activities are much higher than the 5% as discussed in the order of CIT(Exemptions) Legal Precedence - Hon’ble SC in the case of Upper Ganges Sugar Mills Ltd [1997 (8) TMI 4 - SUPREME COURT] held that even if one purpose or object of the trust is religious or substantially religious, the trust will not be eligible for benefit of Section 80G - assessee was not eligible for benefit u/s.80G as it supported prayer halls and places of worships, which is religious purpose. In the case of the assessee, Shri Sai Bhakta Seva Trust, the main object is to construct and maintain Shri Sai baba temple. This fact has not been disputed by the Ld.AR. The Assessee trust regularly performs Pooja, and other rituals. The expenditure on religious activities is more than 5% of the total income of the assessee. Thus, the assessee has violated provision of Section 80G(5B). ITAT Cochin Bench in the case of Nilackal St. Thomas Church & Ecumenical Centre Trust [2014 (1) TMI 604 - ITAT COCHIN] has held that the Trust was not eligible for registration u/s.80G as it had spend more than 5% of its income on religious activities. We uphold the order of the Commissioner of Income Tax (exemption) rejecting the application for registration u/s.80G of the Act. Decided against assessee.
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