TMI Blog2015 (9) TMI 558X X X X Extracts X X X X X X X X Extracts X X X X ..... nd ceremonies are essential according to the tenets of the religion they hold and no outside authority has any jurisdiction to interfere with their decision in such matters.” It might well be that a Hindu religious institution like the Assessee is also engaged in charitable activities which are very much part of religious activity. In carrying on charitable activities along with organising of spiritual lectures, the Assessee by no means ceases to be a religious institution. The activities described by the Assessee as having been undertaken by it during the AY in question can be included in the broad conspectus of Hindu religious activity when viewed in the context of the objects of the Trust and its activities in general. No legal infirmity in the conclusion of the ITAT that for the purpose of Section 115 BBC (2) (a) anonymous donations received by the Assessee would qualify for deduction and it cannot be included in its assessable income. - Decided against revenue. - ITA 269/2015 - - - Dated:- 7-9-2015 - S. Muralidhar And Vibhu Bakhru, JJ. For the Appellant : Mr. Kamal Sawhney, Senior Standing counsel with Mr. Raghvendra K. Singh and Mr. Shikhar Garg, Advocates ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r institutions etc. for advancement of education and knowledge in arts, science, literature, humanities and all other useful subjects in all their manifestation. .... .... .... .... .... (xvii) To promote, organize, administer, establish support maintain and/or grant and to person institution or society or organization is ever having for the objects of charitable purpose and to incur expenditure in connection therewith. 3. For the AY in question, the Assessee filed its return of income accompanied by an audit report, balance sheet, income and expenditure account etc. The case of the Assessee was picked up for scrutiny. It was found by the Assessing Officer (AO) that for the AY in question, the Assessee had received ₹ 5,28,84,204 by way of donations. While the details of the names and addresses of the donors to the extent of ₹ 5,01,588,98 was furnished, the details of donors to the extent of ₹ 27,25,306 were not explained. The Assessee explained that during the AY in question it was mainly involved in imparting of spiritual education through the lectures/samagam delivered by Brahmarishi Shree Kumar Swami Ji and in distribution of medicines and clot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rrect understanding in holding that the Assessee Trust was engaged in spreading spirituality and since Section 115BBC only exempts religious trust, a trust allegedly imparting spiritual knowledge was consequently not contemplated as an exception by the Legislature as much as it consequently is barred to claim exemption vis-a-vis the anonymous donation. The ITAT held that the said aim has to be understood in the context of and read along with the other objects of the trust whose target groups are widows, orphans, old and infirm people, destitutes, illiterate, handicapped, mentally retarded, providing food and shelter to poor and needy, night shelter, nari-niketan, mahila ashram, weaker sections and all other groups who can be included in the phrase 'in need of physical, mental and financial help. Further the ITAT held that the objects of the Trust and the context in which spiritual lectures espousing the philosophy, i.e, the spirituality of the major and predominant religious of the country needs to be considered in the light of the well-accepted and well-known fact that all the major religious of the world with one voice eulogise the importance of taking care of the old, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere concerned. As rightly pointed out by the ITAT itself, the above question cannot be addressed within the narrow scope of the specific wording of some of the clauses of the Trust Deed but in the overall context of the actual activities in which the Trust is involved in including imparting spiritual education to the persons of all castes and religions, organizing Samagams, distribution of free medicines and clothes to the needy and destitute, provision of free ambulance service for needy and destitute patients and so on. 12. In Commissioner of Income-Tax v. Dawoodi Bohra Jamat (supra), the Supreme Court, after analysing the objects of the Trust in that case held that they were not indicative of a wholly religious purpose but were collective indicative of both charitable and religious purposes. It was held in the context of that case that the establishment of Madarsas or institutions to impart religious education to the masses would qualify as a charitable purpose qualifying under the head of education under the provisions of Section 2(15) of the Act. Further, the objects reflected the intent of the trust as observance of the tenets of Islam, but did not restrict the activi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ritual well being, but it would not be correct to say that religion is nothing else but a doctrine of belief. A religion may not only lay down a code of ethical rules for its followers to accept, it might prescribe rituals and observances, ceremonies and modes of worship which are regarded as integral parts of religion, and these forms and observances might extend even to matters of food and dress. 14. This position was reiterated by the Supreme Court in Ratilal Panachand Gandhi v. The State of Bombay AIR 1954 SC 388. In the case of Sastri Yagnapurushadji v. Muldas Bhudardas Vaishya AIR 1966 SC 1119 the Supreme Court pointed out that what constitutes a religious activity under the Hindu faith is very broad in nature. It held: 29. When we think of the Hindu religion, we find it difficult, if not impossible, to define Hindu religion or even adequately describe it.... It may broadly be described as a way of life and nothing more. 15. It might well be that a Hindu religious institution like the Assessee is also engaged in charitable activities which are very much part of religious activity. In carrying on charitable activities along with organising of spiritual lectures, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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