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TMI Blog2017 (10) TMI 241X X X X Extracts X X X X X X X X Extracts X X X X ..... made for such/above purpose and that too by way of contribution to another trust - No clause in 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. X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 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 regard, it was submitted that from the details of said expenses as available in APB 6-8, it can be observed that maximum expenses are on maintenance, cleanness and staff expenses which is ₹ 21,02,201/- & ₹ 31,20,589/- and if the said expenses are not taken into consideration, the expenses on religious purpose as mentioned by the CIT(Exemptions) is less than 5%. Similar is the position for the financial year 2013-14 where if the above expe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 Lord Vishnu's temple does not disentitle the petitioner trust from renewal of its exemption certificate under section 80G of the Act. The line of distinction between religious purposes and charitable purposes is very thin and no water tight compartment between the two activities can be very wellestablished. Unless objective of the charitable trust in question itself is for spending its income for a particular religion and it is so found in the trust deed, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation 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 did, it would read differently. It requires the ascertainment of whether there is one purpose within the institution or fund's overall charitable purpose which is wholly, or substantially wholly, of a religious nature. There is little doubt that clause 2(h) of the trust deed which permits the trustees to support prayer halls and places of worship sets out a purpose the whole or substantially the whole of which is of religious nature, and this has not been ..... X X X X Extracts X X X X X X X X Extracts X X X X
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