TMI Blog2017 (10) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... the trust deed in the present case which indicates that income of the petitioner-trust was to be applied wholly or substantially for any particular religion. It is the dominant object of the trust which is important and contribution and expenditure incurred by the petitioner-trust has to be viewed in light of the objects with which charitable trust in question was constituted. In light of above discussions, we are setting aside the matter to the file of the ld CIT(E) to examine the same a fresh taking into consideration the legal proposition as above - Decided in favour of assessee trust for statistical purposes. - ITA No. 657/JP/2017 - - - Dated:- 3-10-2017 - Shri Kul Bharat, JM And Shri Vikram Singh Yadav, AM Assessee by : Shri N.S. Vyas ( C.A. ) Revenue by : Shri Varinder Mehta ( CIT ) ORDER Per : Vikram Singh Yadav, A.M. This is an appeal filed by the assessee against the order of ld. CIT (Exemptions) dated 09.06.2017 whereby the application of the assessee trust seeking approval u/s 80G was rejected. 2. Briefly the facts of the case are that the assessee trust is registered u/s 12AA of the Act as charitable and religious trust vide order issue ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income than also it will be eligible for approval u/s 80G. But if the expenses of religious nature exceed 5% of total income, the institution/fund cannot be granted approval. In the present case, on the basis of accounts produced, it is seen that the trust has incurred expenses of religious nature exceeding 5% of total income. Thus the trust does not qualify for approval u/s 80G. In the light of the above facts, the application filed in form No. 10G seeking approval u/s 80G was rejected. 6. During the course of hearing, the ld AR submitted that the assessee trust has been granted registration under section 12AA of the Act as charitable cum religious trust and has been running schools, hospitals, dharamshala and also maintenance of temple known as Kaila Devi Ji Temple. It was accordingly contended that the ld CIT(E) was therefore not correct to hold that the predominant activity of the trust is religious in nature. 7. The ld. AR further submitted that the main expenses as mentioned by the CIT(Exemptions) for religious purpose for the financial year 2014-15 are expenses on JAT/CHATRA 2014 of ₹ 27,30,290/- and expenses on JAT/CHATRA 2015 of ₹ 38,20,589/-. In this re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r and participate in various activities. Further, the conclusion so arrived at should be taking into consideration the whole of the activities which have been actually carried on by the assessee trust and which we find in the instance case to include running of schools, hospitals, etc. 10. In this regard, useful guidance can be drawn from the decision of the Hon ble Rajasthan High Court in case of Umaid Charitable Trust v. Union of India reported in [2008] 171 TAXMAN 94 (RAJ.). In that case, the assessee-trust was granted exemption certificate under section 80G for the period from 1-4-2001 to 31-3-2004. However, renewal of exemption certificate for a further period was refused on the ground that the assessee had incurred expenditure exceeding 5 per cent of its total income on a particular religion, namely, colouring and repairing of Lord Vishnu s temple. The assessee filed a writ petition challenging the said order and the Hon ble High Court has set-aside the said order and has laid down the following legal proposition: 31. This Court is of the considered opinion that mere one contribution by the charitable trust to another trust which carried out repair and renovation of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emption was granted to the petitioner trust, upon scrutiny of its application and it held the field for at least three years as is shown by the impugned order itself and trust deed indicates that said trust was constituted long back on 27-8-1963 and has been carrying on such charitable activities, this Court finds no justification for rejecting its renewal under section 80G of the Act which is a matter of right. The conditions of section 80G(5) read with Explanation 3 do not stand violated in the present case. 33. The learned counsel for the revenue relied upon the decision of the Supreme Court in the case of Upper Ganges Sugar Mills (supra), which has been relied upon by the learned CIT(A) also in the impugned order, it was held on the basis of one particular clause (2)(h) of the trust-deed which read to establish, maintain and to grant and/or aid to public places of worship and prayer halls . The Hon ble Supreme Court dealing with Explanation 4 of section 80G(5) held as under : To reiterate, Explanation 3 does not require the ascertainment of whether the whole or substantially the whole of the institution or fund s charitable purpose is of religious nature. If it di ..... X X X X Extracts X X X X X X X X Extracts X X X X
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