TMI Blog2015 (12) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... er that for the purpose it should not be wholly or substantially the whole of which is religious in nature. In the case in hand the reference of the promotion of study of Jain Agama and Jain Siddhnta by itself would not render the whole of the object of the trust as religious in nature. In view of the above facts and circumstances of the case, we find that the assessee’s objects cannot be described as wholly or substantially the whole an religious in nature, accordingly, we set aside the impugned order of Commissioner and direct the Commissioner to grant the recognition u/s 80G of the Act by considering the fact that the assessee has already been granted the registration u/s 12A and picking up a particular reference in one of the claus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... learned erred in law and on facts in not granting the approval u/s 80G of the Act even though the appellant had not applied any income towards the object mentioned in Clause 13 and the learned CIT, Belgaum ought to have held that S.80G(5B) is attracted and the appellant is entitled to approval. 3. In this case, the assessee trust has filed an application for grant of recognition u/s 80G of Income-tax Act on 21/11/2013 in from No. 10G. The assessee trust has been formed on 20th Jan, 2011 and also granted registration u/s 12AA of the Income-tax Act vide order dated 10/2/2012 for two year w.e.f 2012-13. While considering the application for grant of registration u/s 80G Commissioner noted that as per clause-13 of the objects of the trust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee trust is to promote the science and literature and to encourage the study of research in all forms of ancient Indian system of thought philosophies, ayurvedic medicine, yoga etc. In support of his contention he has relied upon the judgment of Hon ble Supreme Court in the case of CIT Vs. Dawoodi Bohra Jamat, 364 ITR 31 and submitted that the Hon ble Supreme Court has observed that the object of the assessee were collectively inclusive of both charitable and religious purpose and not only religious purpose. Therefore, when it was found that objects of the assessee was to provide assistance to needy and poor for religious activity would not divest the trust of its altruist Character. The Hon ble Supreme Court after taking into con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sion relied upon by the assessee in the case of Rajesh Balia and Dawoodi Bora Jamat (Supra) are not applicable in the case of the assessee, as the said decision in respect of claim of exemption u/s 11 as well as u/s 12A of the Income-tax Act and not in respect of registration u/s 80G. He has further submitted that as per the provision of sec. 80G, it is the requirement of the explanation 3 that there is only one purpose within the institution or funds overall charitable purpose which is wholly or substantially for the purpose of charitable and there is no scope of any religious nature. He has relied upon the impugned order of the Commissioner as well as decision of Hon ble High Court in the case of International Sufi Center Vs. DIT(Exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hy. For the purpose of considering the charitable purpose of the trust, the selected words of object clause of charitable trust cannot be picked and chosen, but the entire objects of the trust has to be considered holistically. When all other objects are found as charitable purpose then merely because a reference under one clause to encourage the study of Jain Agama and Jain Sidhnth and Indian Philosophy would not constitute or change the character of the purpose and object of the trust from charitable to religious even as per the explanation 3 of sec. 80G. We further note that vide Finance Act 1999 w.e.f 1/4/2000, sub-sec. 5B has been inserted in the provision which reads as under:- Notwithstanding anything contained in clause(ii) of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of study of Jain Agama and Jain Siddhnta by itself would not render the whole of the object of the trust as religious in nature. A similar view has been taken by the Hon ble Rjasthan High Court in the case of Misrilal Gordhanlal Batra charitable Trust (Supra) as under :- On this premise learned counsel for the petitioner further urges that in view of this provision, every year the Commissioner has to consider the ratio between the total income of the trust and the expenditure actually incurred for religious pruposes and only if the substantive part of the income, that is to say more than 5 per cent of total income is incurred for religious pruposes the registration of trust/fund u/s 80G can be refused on that ground. With thi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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