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2021 (8) TMI 763 - AT - Income TaxApplication filled u/s 80G - Application denied alleging that activities of the SGPC are confined to Sikh Community only - Assessee S.G.P.C.' never made a claim for registration u/s 12AA since the income has been claimed to be exempt undersection 10(23BBA) - activities of the SGPC are confined to Sikh Community only - only objection of the Ld. Lower Authority was that the Assessee was created for the maintenance and administration of the Shikhs Shrine. - HELD THAT:- Assessee trust are primarily doing religious activities for the benefit of the Sikh's religion, as we are deciding that the activities of Assessee are not meant for the benefit of the Sikhs community only, and there is a difference between managing the property and doing the religious activity. Therefore, in our view, there is no requirement for deciding with the issue of registration u/s 12AA of the Income Tax Act for the year under consideration as this was not a reason for denying the registration u/s 80G(5)(iii) of the Act. However, in terms of amendment provision 2020. The assessee is required to apply for registration u/s 12AA of the Act. As the predominant purpose and object of the Assessee are to manage the property, do charitable activities by way of imparting / running educational institutions, organizing lunger, medical camp, hospital etc.; therefore, the activities of the Assessee could not be termed as being done only for the benefit of particular community/ religion hence the Assessee was entitled to the benefit of 80G (5) and would not be religious activities as the its total expenditure incurred on the religious activities was less than 5% during these years. As mentioned herein above even religious activities of Sikh as an individual or as community are meant to extend benefits to the needy human being irrespective caste, creed and religion, which is clear from the Sikhs Maryada (Sikh RehatMaryada, 1945). The Sangat and Pangats are open to all. As every philanthropic or charitable work cannot continue without the contribution from the members of the community/ society , with a view to give impetus to charitable work by the SGPC, it was provided in Sikhs RehatMaryada, which is equally applicable to all Sikhs( Amritdhari or Sahj Dhari both) , to regard as poor men mouth as offering box of Guru and it is old age tradition in India more particularly in Hindus/Sikhs to contribute 10% of the earning for the charitable purposes. The basic concept of charity is to do charity without disclosing identity and knowing who would benefit from the said Charity. Analyzing form any angel in our considered opinion, the Assessee is entitled to benefit under 80G (5)(iii) of the Income Tax Act, 1961, and it will go wrong to allege that the SGPC was constituted for the benefit of a particular religion. Our views mentioned above are supported by the decisions of the Hon’ble Supreme Court in the matter of Dawoodi Bohara Jamat [2014 (3) TMI 652 - SUPREME COURT] - Thus we are of the view that Assessee is entitled to the registration u/s 80G(5)(iii) from the date of application. - Decided in favour of assessee.
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