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TMI Blog2015 (12) TMI 137X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 law and on facts in holding that the objects specified in Clause 13 is a religious object in a proceeding u/s 80G of the Act even though while granting recognition u/s 12AA of the Act it has been held that the objects are charitable in nature. v) Without prejudice to the Grounds No.2 to 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ature 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 department has accepted the assessee trust as public charitable trust while granting registration u/s 12A. Even otherwise the clause -13 of the objects of the assessee trust cannot be said to be religious in nature when the main object of the trust is to promote, propagate and provide opportunities, institutions, centers for the study of research in languages with particular emphasis on Sanskrit and prakrut. The study of Jain Agama and Jain Sidahant and Indian Philosophy, cannot be said to be in religious nature when the main object of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the CIT rendered prior to the amendment brought various provision of sec. 80G by amending sec. 5B whereby the expenditure upto 5% of the total income is permitted for religious nature. Thus, the learned AR has submitted that the Commissioner has committed an error for rejecting registration u/s 80G when the assessee has not incurred any expenditure for religious purpose till the year under consideration. He has referred the relevant details from the accounts 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 decisio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mitment to values in life." 8. Thus, it is clear from the objects clause of the assessee trust out of the 22 clause and 7 sub clauses, the Commissioner has picked up only one clause of the trust to hold that objects of the 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 Indian Philosophy. For the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 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 as charitable nature. The provision of sec. 80G also recognizes the duality of purpose with a rider that for the purpose it should not be wholly or substantially the whole of which is religious in nature. In the case in hand the reference of the promotion of study of Jai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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