TMI Blog2021 (12) TMI 93X X X X Extracts X X X X X X X X Extracts X X X X ..... e Act, we find that as per the provisions of section 80G(5B) for institutions or fund to qualify for getting approval u/s 80G(5B) of the Act the expenditure of religious nature incurred during any previous year should not exceed 5% of its total income. In the impugned order Ld. CIT(E) has alleged that the expenditure of religious nature incurred by the assessee has exceeded 5% of the total income. We, however on going through the submissions of the Ld. counsel for the assessee as well as facts placed on record, find that during the year total receipts appearing in the income and expenditure account are at ₹ 14,11,089/- and carpus fund received during the year (as shown in the balance sheet end 31st March 2017) is ₹ 7,43,111/-. Thus total receipt of the trust for the year at ₹ 21,54,200/- and against the total receipts the alleged expenditure of religious nature amounts to ₹ 88,262/- which in percentage term comes to only 4.10% of the total receipt. Therefore, in our considered view assessee has not violated the provision of section 80G(5B). CIT(E) erred in denying the approval u/s 80G applied by the assessee in Form 10G since the assessee is carrying o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich also has not a prayer hall where yoga and medical camp is organized occasionally. The perusal of income and expenditure accounts for F.Y. 2015-16 and 2016-17 reveals that the expenses are either religious in nature (Pooja Samargri expenses and Poshak Expenses) or are establishment expenses. As the current establishment consists of maintenance of temple only, even the establishment expenses are also considered religious in nature. 3.2 As regard capital expenditure, the total cost of construction of temple along with shops was ₹ 1,92,25,973/- as on 31.03.2016, which rose to ₹ 2,04,23,027/- as on 31.03.2017 on account of work in progress of proposed Vriddharshram, adjoining the temple premises. Therefore, even if capital expenditure of ₹ 11,82,924/- incurred during F.Y. 20016-17 is considered the total expenses on running and maintenances of temple including establishment expenses for temple, by far exceed the limit of 5% as allowed as per section 80G(5B) of the I.T. Act and therefore, the AR was requested to show cause as to why not the approval be denied. In its reply dated 29.08.2017, the applicant claimed that only pooja samagri expenses are religious i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of communities having different gods who are being worshipped in a different manner, different rituals, different ethical codes-Technically Hindu is neither a religion nor a community. Therefore, expenses incurred for worshipping of Lord Balaji and for maintenance of temple cannot be regarded to be for religious purpose. C. The definition of charitable purpose is inclusive one, some of the objects fall within advancement of any other object of general public utility -until and unless any part of the income or assets of the institution for any purpose other than a charitable purpose or an activity when it looses its charitable character. D. The appellant Trust total expenditure of on alleged religious activities during the F.Y. 16-17 was ₹ 88,262 (prasadam and poshak) where as total income/receipts including corpus fund amounts to ₹ 21,54,200. Thus the total % age of the amount on alleged religious activities was 4.09 % whereas it should not exceed to 5 % as restricted by the section 80G (5B). E. The 'total income' as mentioned in sub-clause (5B) of Section 80G of the Act does not mean the 'income', as it appears in Section 11 of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... that the assessee trust is also providing food to poor, organizing medical camp and so it was not justified on the part of the Ld. CIT(E) to observe that the assessee trust is only running for religious activities. Even in the Income Tax expenditure account apart from the expenses for Pooja Samagri at ₹ 63,462/- and Poshak at ₹ 24,800/-, trust has incurred other expenses at ₹ 3,97,789/-. This facts goes un-rebutted by Ld. DR, therefore, so for as the first observation of the Ld. CIT(E) that the assessee is carrying out only religious activities does not seems to have merit as the evidence placed on record shows that the assessee trust is carrying out other activities also as enumerated in the trust deed. 9. As regards the second observation of the ld. CIT(E) that the assessee trust has violated the provision of section 80G(5B) of the Act, we find that as per the provisions of section 80G(5B) of the Act for institutions or fund to qualify for getting approval u/s 80G(5B) of the Act the expenditure of religious nature incurred during any previous year should not exceed 5% of its total income. In the impugned order Ld. CIT(E) has alleged that the expenditure of r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ced below: In this case it was held that Donation of more than 5% of its income for renovation of temple of Lord Vishnu would not disentitle the trust for renewal of approval under s. 80G(5)(vi) on the ground of violation of s. 80G(5B)-As people belonging to different religious sects have faith in lord Vishnu, the expenditure cannot be said to have been incurred for a particular religion- There is no clause in the trust deed which indicates that income of the petitioner trust was to be applied wholly or substantially for any particular religion so as to constitute violation of s 80G(5) r/w Expln. 3. D.6. In CIT v. Rajneesh Foundation , the Bombay High Court observed that charitable purpose includes relief of the poor, education, medical relief and advancement of any other object of general public utility. Not only in India, meditation and yoga are being accepted in the western countries also as a great source for physical and mental health and spiritual attainment. When a large number of people feel that meditation is a great source for physical, mental and spiritual well-being it must be held to be an activity for the advancement of general public utility. Rule of Consis ..... X X X X Extracts X X X X X X X X Extracts X X X X
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