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TMI Blog2017 (11) TMI 630X X X X Extracts X X X X X X X X Extracts X X X X ..... nt year 2016-17. 2. Briefly stated, the assessee had filed an application for approval in Form NO.10G on 21.1.2016. The assessee was registered as a charitable trust u/s 12AA of the Act vide order dated 23.12.2005. The Ld.CIT(E) denied approval for the reason that the assessee trust did not fulfill the foremost requirement which was to be satisfied by it for being eligible for grant of approval u/s 80G(5) i.e. being established solely for charitable purpose. The Ld.CIT(E) stated that atleast 3 of 5 purposes for which the assessee had been established had religious contours, which was in contravention to the provisions of section 80G(5)(iii) of the Act and was also hit by Explanation-3 to sub-section (5) of section 80G, which precludes purp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... discourses, teachings, brotherhood, nationalism, and general uplift of mankind, to build moral fiber and develop healthy society and harmony amongst public in general. (d) To help the needy and poor children for their education. (e) To open and run charitable dispensaries and hospitals for public in general etc. 5. The Ld. counsel for assessee pointed out therefrom that the three objects which as per the Ld.CIT(E) has religious contours being (a), (b) and (c) objects did not promote any particular religion or caste but benefited the entire public at large. The Ld. counsel for assessee pointed that the object at clause (a) was only to celebrate Agarsain Jayanti every year and to propagate and inculcate the religious feelings, brother ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .- In this section," charitable purpose" does not include any purpose the whole or substantially the whole of which is of a religious nature". 7. The Ld. counsel for assessee stated that none of the objects of the assessee society of the assessee society, more specifically those stated at clauses (a), (b) and (c) of the Act could be said to be of a religious nature as pointed out above. The Ld. counsel for assessee, therefore, stated that the assessee was not even hit by Explanation-3 of section 80G(5) of the Act. The Ld. counsel for assessee, therefore, contended that the assessee society was established for a charitable purpose and not for the purpose of benefiting any particular religious community or caste and was thus eligible for gr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he expenses to the tune of 25% of the total expenses cannot be said to be meagre on charitable purpose. The Ld. counsel for assessee also drew our attention to various activities carried out by the assessee society at less than normal rate like providing laboratory testing facilities at less than market price, conducting free operation of eyes, etc., placed at page Nos.114 to 130 of the Paper Book. The Ld. counsel for assessee, therefore, stated that the assessee trust was indulging primarily in charitable activities only. 9. The Ld. DR, on the other hand, relied upon the order of the Ld.CIT(E) and stated that celebrating Agarsain Jayantee and promoting feeling of brotherhood among Aggarwal community tantamount to benefiting a particular c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing Aggarwal community only nor being in the nature of religious purpose. As for the object of celebration of Agarsain Jayanti , it definitely does not have a religious contour and the Ld.Counsel for the assessee has emphasized that the celebrations involve the public at large therefore we fail to understand as to how the said object is for the benefit of a particular community only. Moreover only one object out of several objects cannot give a religious or communal colour to the assessee society. The rest of the objects aimed at developing the moral fabric of the society, help poor and needy children in their education and running charitable dispensaries and hospitals for the public at large are all charitable activities for the benefit of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... managing the affairs of the society are basic and essential expenditure which are to be considered to have been incurred in the course of carrying out its charitable activities alone and, therefore, staff salary paid on account of the same cannot be treated as being expenses not related to the charitable activity of the assessee concern. In such circumstances, the expenses incurred on staff salary are also to be treated as part of charitable activities carried out by the assessee and considering the same, therefore, the quantum of expenditure incurred by the assessee on its activities takes a quantum jump and thus the findings of Ld.CIT(E) that the assessee has incurred meagre income on its stated charitable expenses gets negated. 12. In v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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