TMI Blog2021 (5) TMI 865X X X X Extracts X X X X X X X X Extracts X X X X ..... gistration u/s.80G of the Act as this is not required to conduct activities on all the objects to get approval registration u/s.80G and it is also not a requirement of section 80G of the Act to conduct activities on all the objects stated in the Trust Deed. Therefore, we are of the considered view that the contention of ld CIT DR are not found to be acceptable in the present case. The order of ITAT Jaipur in the case of Shri Bair Singh Ji Narayan Singh Ji Memorial Sansthan [ 2018 (12) TMI 1887 - ITAT JAIPUR] relied on by the assessee also provides support to the grounds of the assessee. In this order, the Co-ordinate bench has relied to the judgment of Umaid Charitable Trust vs The Union of India [ 2008 (5) TMI 232 - RAJASTHAN HIGH COURT] wherein, it was held that unless objection of the assessee trust is for spending its income for a particular religion and it is so found in the Trust Deed, the Revenue cannot reject application seeking registration u/s. 80G of the Act merely because the Trust has incurred some expenditures for certain activities within its charitable objects. The decisions relied by the assessee support the case of the assessee. Accordingly, in the absen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of pilgrims visiting Puri, maintaining a children park in 2 acres of land for play and take joy riders every day free of cost, and many others. He submitted that the ld CIT(E) rejected the application on the main ground that the trust is for religious purposes without considering the main activities of the trust, which are charitable. 5. Ld counsel also produced agreements dated 24.12.2014 and 11.11.2016 entered into between the Puri Muncipality and the assessee trust for establishing children park and plantation for the all-round development of children of Puri city. Ld counsel also produced balance sheet, income and expenditure account, receipt and payment account for the period 1st April to 31st March, 2019 as well as auditor s report. He submitted that the ld CIT (E) rejected the grant of approval u/s.80G without considering the above books of account. He submitted that when the assessee is continuing registration u/s.12A of the Act and the main purpose of the assessee trust is charitable, the grant of approval u/s.80G(5)(vi) cannot be rejected. 6. In support of his contention, ld counsel for the assessee relied on the following decisions: i) Shiv Mandir Devstt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of grant of approval u/s 80G, what is to be seen by the Commissioner is that the institution or fund seeking approval is established for charitable purpose and is genuinely carrying out the activities of the institution or funds and further that it fulfills all the conditions laid down in clauses (i) to (v) of section 80G(5) of the Act. The conditions specified in the section 80G are primarily to the effect that the Commissioner has to ensure that the Fund or Institution seeking approval is appropriately constituted as specified in sub clause (v), is not for the benefit of any particular religious community or caste and is formed for the purpose of and is genuinely carrying out charitable activities. The Commissioner has to record the fulfillment of all the conditions in writing and thereafter grant approval. In this case, the CIT(E) had not considered the application of the assessee in accordance with that prescribed under the Act and the Rules read alongwith it and rejected the application solely on the ground that the assessee trust is engaged for religious purposes. There is no finding in the entire order vis-a-vis the genuineness of the activities carried out by the applicant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lar religion. No doubt the DR argued that it relate to Hindu Religion but in our opinion it is not so. Lord shiva, Hanumanji, goddess Durga does not represent any particular religion, they are merely regarded to be the super power of the universe. 11. In the case of Commissioner of Hindu Religious and Charitable Endowments Madras vs. Sri Lakshmindra Thirtha Swamiar 1954 SCJ335, Religion has been expressed to mean a matter of faith with individuals or communities and it is not necessarily theistic. There are well known religions in India, like Buddhism and Jainism, which do not believe in God or in any intelligent first cause. A religion undoubtedly has its basis in a system of beliefs or doctrines which are regarded by those who profess that religion as conducive to their spiritual well being, but it will not be correct to say that religions is nothing else but a doctrine or belief. A religion may not only lay down a code of ethical rules for its followers to accept, but it might prescribed rituals and observances, ceremonies and modes of worship which are regarded as integral parts of a religion, and these forms and observances might extend even to matters of food and dress. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It as such is not a religion. In this regard we rely on the case of T T Kuppuswamy Chettiar Vs. State of Tamil Nadu (1987) 100 LW 1031 in which it was held The word Hindu has not been defined in any of the texts nor in judgment made law. The word was given by British administrators to inhabitants of India, who were not Christians, Muslims, Parsis or Jews. The alleged Hindu religion consists of four castes Brahmins, kshatriyas, vaishyas and sudras belonging ultimately to two schools of law, mitaksharas and dayabhaga. There is, however, no religion by the name Hindu . It only shows that so called Hindu religion has been called for convenience. CIT must be aware of that the Hindu consists of a number of communities having the different gods who are being worshipped in a different manner, different rituals, different ethical codes. Even the worship of god is not essential for a person who has adopted Hinduism way of life. Thus, Hinduism holds within its fold men of divergent views and traditions who have very little in common except a vague faith in what may be called the fundamentals of the Hinduism. The word community means a society of people living in the same place, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de order dated 05.04.2016 (APB, 16-18). It is not disputed that this registration has hitherto not been revoked or cancelled. The ld. CIT(E) has observed, interalia, that approval u/s 80G(5) of the Act is not a mechanical process, wherein the according of registration u/s 12AA of the Act at one end would result in the issuance of approval u/s 80G(5) at the other. Consistent judicial opinion in this regard, however, is otherwise. The issue is, as such, no longer res integra. 6. In Hiralal Bhagwati vs. CIT , 246 ITR 188 (Guj.), while holding that once registration u/s 12AA of the Act was granted, the order rejecting the application u/s 80G(5) of the Act was liable to be quashed, the Hon ble High Court observed that the registration of a charitable trust u/s 12A of the Act is not an idle or empty formality; that this is apparent from the provisions of Section 12A; that it requires that not only an application should be filed in the prescribed form, setting out the details of the origin of the trust, but also the names and addresses of the trustees and/ or Managers should be furnished; that the CIT has to examine the objects of creating the trust as well as an empirical study of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e decided only in the assessment proceedings; and that since the assessee was (in that case, as herein also) registered u/s 12A of the Act and such registration continued, the assessee fulfilled the conditions prescribed u/s 80G(5)(i) of the Act. 10. N.N. Desai (Supra) has also been followed in Marathi Vidyan Parishad Nashik Vibhag vs. CIT, Nashik , (APB, 95-102), by the Pune Tribunal, vide order dated 20.05.2016, in ITA No. 1465/PN/2014. 11. N.N. Desai (Supra) was also followed in CIT vs. Pujya Jalarambpa Matushri Virbaima Charitable Trust (APB, 84-88), by the Rajkot Tribunal in ITA No. 249/Rjt/2014, vide order dated 30.05.2014. This order of the Tribunal stands approved by the Hon ble Gujarat High Court in CIT vs. Pujya Shri Jalarambapa Matushri Virbaima Charitable Trust 55 taxmann.com 52 (Rjt). 12. Pujya Shri Jalarambapa (Supra) rendered by the Hon ble Gujarat High Court has been followed by this Bench in M/s Samajik Pragya Prasar Samiti, Agra vs. CIT(E) (APB, 76-83) vide 7 order (authored by one of us, the ld. AM) dated 16.01.2018, in ITA No.343/Agr/2016. 13. No decision contrary to the above case laws has either been referred by the ld. CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the purpose of its charitable objects. The Ld. counsel for assessee pointed out that the assessee was not keeping its surplus unutilized in cash or FDRs. The Ld. counsel for assessee further pointed out that the contention of the Ld.CIT(E) that major portion was being spent on salary does not go against the assessee since salaries were being paid to the staff who were involved in running the charitable trust and the medical facilities being provided by it which was essential expenditure and further pointed out that even 6 the 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... onstrated carrying out the same in the preceding years by way of documents filed showing conducting free eye operations and carrying out medical tests at subsidized rates which has not been controverted by the Revenue. We also find ,on perusing the financial statements of the assessee society for the preceding three years i.e. year ending on 31-03-13,31-03-14 31-03-15 that all expenditures incurred are only in the context of running its charitable dispensary by way of purchasing medicines, paying staff salary and incurring misc. expenses only. No expenditure explicitly benefitting the Aggarwal community has been incurred by the assessee. Therefore we find no merit in the contention of the Revenue that the objects of the assessee society had religious contours and were benefitting a particular community only. 11. Further the contention of the Revenue that the assessee was spending only a small portion of its receipts on the stated charitable activities is again we find factually incorrect. The said finding, we find, has been arrived at after excluding the spend on salary, which as per the Ld.CIT(E) is not a charitable activity. But considering the fact that the assessee is ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to make a new view at this belated stage. Further, on perusal of the impugned order, we clearly observe that the ld CIT (E) has not pointed out any defect in the application of the assessee. However, only on the basis of clause (iii) of sub-section (5) of Section 80G, he denied registration u/s.80G of the Act by observing that the Trust s activities includes religious activities and violating the provisions of section 80G(5)(iii) of the Act. As we have noted that the clause (iii) does not create any bar in undertaking religious activities but states that the Trust is not expressed to be for the benefit of any particular religious community or caste. In the present case, the Trust is serving humanity without any discrimination of religious status or caste or creed as long as is for all human being without any discrimination. In addition to running a Gurudwar, they are also maintaining park for all citizens of Puri and visitors/tourists/pilgrims on the land given by Puri Muncipal Corporation. They also served people during natural calamities like flood, earthquake, cyclone etc. Detail note including photocopies of documents and photographs available at page 1 to 39 of assessee PB cl ..... X X X X Extracts X X X X X X X X Extracts X X X X
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