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Ramachand Motichand Shah Educational and Cultural Trust Versus The Commissioner of Income-tax, Belgaum.

2015 (12) TMI 137 - ITAT BANGALORE

Grant of recognition u/s 80G rejected - one of the clauses of the object of the assessee trust as religious in nature - Held that:- None of the expenditure so far incurred by the assessee can be said to be of a religious nature and, therefore, the assessee fulfilled the conditions as provided u/s 80G of the Income-tax Act. The Hon’ble Supreme Court in the case of Dawoodi Bohra Jamt (2014 (3) TMI 652 - SUPREME COURT ) has also confirmed and recognized the duality of the purpose of religious as we .....

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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 clauses of the object would not constitute the entire and whole of the objects of the assessee trust as religious in nature. - Decided in favour of .....

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he assessee has raised following grounds: i) That the order of the learned CIT, in so far it is prejudicial to the interest of the appellant, is bad and erroneous in law and against the facts and circumstances of the case. ii) That the learned CIT erred in law and on facts in not granting the approval u/s 80G of the Act. iii) That the learned CIT erred in law and on facts in holding that the objects specified in clause 13 of the Trust Deed is religious in nature. iv) That the learned erred in la .....

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ught 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 .....

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he Commissioner on the ground that as per clasue-13 of the trust deed which contains the objects of the assessee trust, the Commissioner found that the objective of the trust is for the promotion of Jain religion and, therefore, the assessee s object is not charitable but it in the nature of non charitable and in the nature of religion. The learned AR submitted that the assessee trust is an educational trust registered as a Public Charitable Trust u/s 12A of the Income-tax Act. Thus, the departm .....

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ous nature when the main object of 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 charit .....

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religious and charitable trust subject to the provision of sec. 13 of the Act. 5. The learned AR has relied upon the decision of Hon ble Rajasthan High Court in the case of Mishrilal Goardhanlal Batra Charitable Trust Vs. CIT, 307 ITR 221 and submitted that as per the amended provision of sec. 80G when the actual expenditure incurred for religious purpose is not more than 5% of the total income then the registration of the trust u/s 80G cannot be refused on that ground. The learned AR has submit .....

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of the assessee and submitted that none of the expenditure incurred by the assessee till date is in respect of religious purpose. Accordingly the learned AR has pleased that the registration u/s 80G may be granted. 6. On the other hand, the learned DR has submitted that the decision 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 o .....

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Sufi Center Vs. DIT(Exemptions) dated 25.1.2011 in ITA No.436 of 2010. 7. We have considered the rival submission as well as relevant material on record. While rejecting the application of the assessee, the Commissioner has given much emphasis on the clause 13 of objects which read as under: To promote, propagate and provide opportunities, Institutions, Centers for the study of and research into languages, with particular emphasis on Sanskrit, and prakrut to encourage the study Jain Agama and J .....

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trust are religious in nature. As per explanation 3 to sec. 80G, the charitable purpose does not include any purpose wholly or substantially the whole of which is of religious nature. Therefore, if the purpose of a trust wholly or substantially whole of which of a religious nature then it is excluded from the term charitable purpose. We find that out of the 22 clauses and 7 sub clauses only under clause 13 there is a mention of particular study for encouraging Jain Agama and Jain Siddhanth and .....

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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 sub-section(5) and Explanation 3, an institution or fund which incurs expenditure, during any previous year, which is of a religious nature for an amount not exceeding five percent of its total income in that previous year shall be deemed t .....

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the provision of sec. 80G. 10. The learned AR has referred to the balance sheet of the assessee trust for various assessment years from where we find that none of the expenditure so far incurred by the assessee can be said to be of a religious nature and, therefore, the assessee fulfilled the conditions as provided u/s 80G of the Income-tax Act. The Hon ble Supreme Court in the case of Dawoodi Bohra Jamt (Supra) has also confirmed and recognized the duality of the purpose of religious as well a .....

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