TMI Blog2011 (9) TMI 278X X X X Extracts X X X X X X X X Extracts X X X X ..... read with sub-section 5B of section 80G of the Act. - Decided against the assessee. - IT APPEAL NO. 267 (VIZAG.) OF 2010 - - - Dated:- 5-9-2011 - SUNIL KUMAR YADAV, B.R. BASKARAN, JJ. C. Subrahmanyam for the Appellant. R.K. Singh for the Respondent. ORDER S.K. Yadav, Judicial Member. This appeal is preferred by the assessee against the order of the CIT refusing the grant of registration u/s 80G of the Income-tax Act (hereinafter called as an 'Act'). Though various grounds are raised in this appeal but they all relate to the validity of the rejection of grant of registration u/s 80G of the Act. 2. The facts in narrow compass borne out from the order of the CIT are that the assessee society was initially recognized u/s 80G of the Act up to 31.3.2007. However, there after there was no request for renewal w.e.f. 1.4.2007 and only after a gap of more than 2 years, the assessee society moved a fresh application for certificate of exemption u/s 80G of the Act. The facts narrated in the CIT's order are that the assessee societies came into existence with the objects of evangelising and edifying the body of Lord Jesus Christ so as to spread His teachings to far o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the assessees. CIT himself has accepted that the assessee is also engaged in establishing and running educational institutions by providing technical, medical, engineering and other humanities related education and also for maintenance of an orphanage and providing relief to the lepers, aged and poors. Whatever salaries were paid to the staff, it should be considered under the head expenditure on charitable activities but CIT has considered the salaries under the head expenditure for religious activities. The assessee has also filed a comparative table showing details of expenditure incurred for religious activities and also for charitable activities. The Ld. Counsel for the assessee further contended that assessee was earlier granted registration u/s 80G of the Act. Meaning thereby, the assessee was admittedly engaged in charitable activities. Though the registration was not sought to be renewed at proper time, but the assessee moved an application for grant of fresh registration to avoid all technicalities and the past conduct of the assessee should have been taken into account while granting registration u/s 80G of the Act. He further contended that from the details of expend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with the objects of evangelizing and edifying the body of Lord Jesus Christ so as to spread teachings to far off villages, to publish Christian magazines and journals, etc. Though the assessee society has claimed that they were engaged in charitable activities besides undertaking religious activities but from the details of expenditures available in the order of the CIT as well as the details filed by the society, the assessee society has incurred the main expenditures on T.V. telecast and salaries of preachers. It is also not clear from the details furnished by the assessee that what type of education was provided by the assessee societies, though he has claimed certain salaries to teachers and hostel staff salaries. The CIT has considered the salaries to preachers under the head expenditure for religious activities. But the assessee claimed this expenditure under the head expenditure on charitable activities. But we are unable to understand as to what charitable activities were undertaken by the assessees through the preachers. Whereas, the preachers are generally engaged to spread the teachings of Lord Jesus Christ and therefore cannot be considered to be an expenditure incurred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Head under which expenditure was debited As the end of 31.03.2006 Church Site-I 5,53,357 Church Site-II 18,57,470 Church building 27,48,371 Church building water tank 12,36,372 Church furniture 1,68,299 Church musical instruments 1,03,418 Church ceiling 50,000 Total 67,17,287 Religious activities:- Head under which expenditure was debited As at the end of 31.3.2006 31.3.2007 31.3.2008 31.3.2009 TV telecast (gospel preaching) 15,17,591 5,28,000 1,06,180 4,14,215 Salary to Preachers 10,47,200 19,89,000 19,68,000 19,93,850 Preachings Seminars 60,291 81,620 50,810 Religious functions 55,229 63,036 95,000 1,44,994 Christian literature 31,150 50,000 Open air gospel meeting and medical camp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the public trust/institution is found to be of religious in nature, it stands disqualified for obtaining exemption u/s 80G, as was held by the Hon'ble Calcutta High Court in the case of CIT v. Upper Ganges Sugar Mills Ltd., [1985] 154 ITR 308 which was subsequently affirmed by the Hon'ble Supreme Court in citation number [1997] 227 ITR 578. The Court had taken the view that prayer and worship in common parlance denote religious activities, and even if prayer halls are available to all religions, yet, on that account, the object of setting up of places of worship and prayer halls do not cease to be a religious object. (c) Since the assessee institution cannot be treated as one whose objectives are wholly charitable, it does not, at the outset, qualify as a wholly charitable institution for the purpose of obtaining a certificate of exemption u/s 80G of the Act. Reference is made to the case law of Reliance Motor Co. Pvt. Ltd. v. Commissioner of Income-tax 213 ITR 578 wherein it was held that "where a donation is made to a trust, the name of which itself indicates that it belongs to a particular religious community and its object includes not only charitable purposes but also r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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