TMI Blog2012 (11) TMI 352X X X X Extracts X X X X X X X X Extracts X X X X ..... gion nor a community. Expenses incurred for worshipping of Lord Shiva, Hanuman, Goddess Durga and for maintenance of temple cannot be regarded to be for religious purpose. - CIT directed to grant approval to the assessee-trust u/s. 80G(5)(vi) of the Act. – in favor of assesse. - 223 (NAGPUR) OF 2009 - - - Dated:- 11-10-2012 - P.K. BANSAL, ACCOUNTANT MEMBER, AND D.T. GARASIA, JUDICIAL MEMBER Appellant Represented By: Shri P.R. Gandhi, Advocate Respondent Represented By: Shri Suresh R. Kirtane, JCIT ORDER P.K. Bansal, Accountant Member - The only issue involved in this appeal filed by the assessee relates to the grant of approval u/s 80G(5)(vi) of the Income-tax Act, 1961. The brief facts of the case are that Shiv Mandir Devsttan Panch Committee Sanstan, Nagpur filed an application in form no.10G on 9.7.2008 seeking approval u/s 80G(5)(vi) of the Income-tax Act. The copy of the accounts for the year 31.3.2008 was also filed. As per this, the assessee has incurred total expenditure amounting to Rs. 82,977/-, which consist of building maintenance expenses - Rs. 23,530/-; Free food expenses - Rs. 34,399/-; Festival prayer daily expenses - Rs. 18,328/-; Tailori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n record along with the order of CIT. The provisions of section 80G sub-section (5) of the Income-tax Act lays down as under : "(5). This section applies to donations to any institution or fund referred to in sub-clause (iv) of clause (a) of sub-section (2), on if it is established in India for a charitable purpose and if it fulfils the following conditions, namely - ( i ). where the institution or fund derives any income, such income would not be liable to inclusion in its total income under the provisions of section 11 and 12 or clause (23AA) or clause (23C) of section 10 : Provided that where an institution or fund derives any income, being profits and gains of business, the condition that such income would not be liable to inclusion in its total income under the provisions of section 11 shall not apply in relation to such income, if - ( a ) the institution or fund maintains separate books of account in respect of such business; ( b ) the donations made to the institution or fund are not used by it directly or indirectly, for the purposes of such business; and ( c ) the institution or fund issues to a person making the donation a certificate to the effect that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tution or fund to make an application for approval under section 80G(5)(vi) in form No. 10G. The application was to be submitted in triplicate. This Rule further requires that the application shall be accompanied with the following documents namely : ( i ). Copy of registration granted u/s. 12A or copy of the notification issued u/s. 10(23) or 10(23C); ( ii ). Notes on activities of the institution or fund since its inception or during the last three years, whichever is less; ( iii ). Copies of account of the Institution or fund since its inception or during the last three years, whichever is less. 7. Sub-rule (3) empowers the Commissioner to call for such documents or information from the institution or fund or cause such enquiries to be made as he may deem necessary in order to satisfy himself about the genuineness of the activities of such Institution. Sub-rule (4) lays down that if all the conditions as enumerated in clause (1) to (v) of sub-section (5) of section 80G are fulfilled by the institution or fund, CIT shall record such satisfaction in writing and grant approval to the institution or fund specifying the assessment year or years for which the approval is va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... objects can be regarded to be of religious nature and the expenditure incurred for the fulfillment of these objects can be said to have been incurred for the benefit of particular religion. 9. The charitable purpose has been defined u/s. 2(15) of the Act. The definition of charitable purpose is inclusive one. It includes relief of the poor, education, medical relief, and the advancement of any other object of general public utility. The objects as enumerated above held on by the assessee trust are charitable within the meaning of section 2 of sub section 15. Some of the objects fall within the "advancement of any other object of general public utility". Proviso to section 2 sub section 15 restricts the meaning "advancement of any other objects of general public utility". But CIT(A) has not stated that proviso to section 2 sub-section 15 is applicable in the case of the assessee. 10. Now coming to the question whether the assessee trust has violated the conditions as laid down in clause (iii) of section 80G(5), we reproduce this clause which reads as under : "( iii ). the institution or fund is not expressed to be for the benefit of any particular religious community or c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... religion, and these forms and observances might extend even to matters of food and dress. No material or evidence has been brought on record by the department which may prove that any person coming, worshipping and maintaining the temple has to follow a particular code of ethical rules and has to carry out the prescribed rituals and observances, ceremonies and modes of worship. The entry is not restricted to a particular group of persons. Any body whether want to worship or not and want to maintain or not can come to the temple and avail of all the facilities available to the public at large. Therefore, these objects cannot be regarded to be the religious objects. In our opinion, until and unless the activities for which the trust is established, involve the activity religious purpose, it cannot be said that the assessee has not complied with the condition No. (iii) enumerated u/s. 80G(5) of the Act. 12. Even we noted that all the building maintenance expenses, free food expenses and festival, prayer and daily expenses cannot be regarded to be the one incurred for religious object, even if the object is regarded to be religious one. It is not denied that in the building the as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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