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TMI Blog2023 (4) TMI 135X X X X Extracts X X X X X X X X Extracts X X X X ..... and the pooja, rituals performed are nothing but Religious activities. The main aim of the assessee trust is to construct and maintain the Shri Saibaba Memorial. Distinguishing Case law relied by Assessee - Assessee relied upon ARANYASHWAR DEVALAYA TRUST VERSUS CIT-1, PUNE [ 2015 (8) TMI 1083 - ITAT PUNE] case wherein as held that the conditions prescribed in section 80G(5B) are satisfied as the expenses on religious activities i.e. pooja expenses are less than 5%. However, in the instant case the expenses incurred on religious activities are much higher than the 5% as discussed in the order of CIT(Exemptions) Legal Precedence - Hon ble SC in the case of Upper Ganges Sugar Mills Ltd [ 1997 (8) TMI 4 - SUPREME COURT] held that even if one purpose or object of the trust is religious or substantially religious, the trust will not be eligible for benefit of Section 80G - assessee was not eligible for benefit u/s.80G as it supported prayer halls and places of worships, which is religious purpose. In the case of the assessee, Shri Sai Bhakta Seva Trust, the main object is to construct and maintain Shri Sai baba temple. This fact has not been disputed by the Ld.AR. The Asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 2,30,083/- 1,21,483/- 1,55,909/- Prasad Exp. 1,60,788/- 1,19,580/- 1,72,284/- Pooja Exp. 1,75,174/- 1,52,267/- 1,33,147/- Mandir Jirnodhar 0 0 2,88,065/- Total... 5,66,045/- 3,93,330/- 7,49,405/- In view of the above,_ the details of expenditure on religious activities and income of the applicant are as under: F.Y. Total income of the- trust Expenditure on religious activities % of expenses on religious objects other than establishment expenses 2015-16 44,22,137/- 5,66,045/- 12.80% 2016-17 59,10,459/- 3,93,330/- 6.65% 2017-18 44,8 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Ld.AR relied on the order of ITAT Pune in the case of Aranyashwar Devalaya Trust ITA No.1489/Pune/2013. The ld.Departmental Representative(ld.DR) : 4. Ld.DR has filed written submission, relevant part is reproduced here as under : From the accounts of the appellant assessee it is seen that following are the expenditure for religious purposes : FY Total Income %Religious expenditure 2015-16 15,65,678 11.18% 2016-17 12,58,635 12.09 % 2017-18 13,64,724 9.75 % Thus, the expenditure for Religious activities are more than 5%. Therefore, the appellant has not satisfied conditions laid down in Section 80G(5) of the Act. The Revenue relies on following case laws: 4.1 Kirti Chand Tarawati Ch. Trust Vs DIT [(1998) 232 ITR 11 (Delhi)] (enclosed as Annexure-5): In this case the Hon'ble High Court has quoted the relevant provisions of section 80G in para 7 and emphasis is given for the provisions of Explanation 3 which are reproduced as un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is mandatory for it to fulfill the other essential conditions prescribed under sub-section 5 of section 80G which inter alia vide clause (iv) mandates for the maintenance of the regular accounts of the receipts and expenditure by such institution for the funds. 4.3 In the instant case the appellant does not satisfy not only the conditions prescribed in clause (iv) in view of the fact that it failed to furnish the necessary information required by the CIT(Exemptions) as discussed in para 2 of the order dated 17/10/2019, but it had also failed to satisfy the conditions prescribed in clause (ii) of section 80G(5), section 80G(5B) and Explanation 3 of the section 80G as discussed in the order dated 17/10/2019. Thus, the ratio of the decision is squarely applicable in the instant case. Distinguishing Case law relied by Assessee: 5. The Ld. AR of the appellant has relied on the decision of the Hon'ble 'B' Bench Pune dated 17/08/2015 in the case of Aranyashwar Devalaya Trust in ITA No.1489/PN/2013. The Hon'ble ITAT has held in the above said case that the expenses incurred on religious activities / pooja etc. were below 5% as has been worked out in the table ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e . The assessee conducts regular Pooja in the temple. 6.2 Ld.AR claimed that assessee runs a Goshala , carried out charitable activities like Blood Donation, cultural activities, etc. However, the assessee has not filed any evidence for these activities claimed by the assessee. 6.3 It is observed that the expenditure on Religious Activities is 12% in F.Y.2015-16, 6.67% in F.Y. 2016-17 and 16.7% in 2017-18. What is Religious: We need to first answer what is Religious activity . The dictionary meaning is that Religious means relating to or manifesting faithful devotion to an acknowledged ultimate reality or deity. Rituals and observances, ceremonies and modes of worship are regarded as integral parts of religion. Performing Rituals, Ceremonies, worships, Poojas are nothing but religious activities. 6.4 The main Shri Sai baba temple is in Shirdi, where Shri Saibaba had lived his life. The Official website of Shri Sai Sansthan Shirdi has mentioned as under : Shri Saibaba is worshipped as a God incarnate. (SAI meaning Sakshaat Ishwar) - GOD THE ABSOLUTE To his devotees, Baba is nothing less than a GOD. This has been a matter of experience and not im ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bstantially the whole of the institution or fund's charitable purpose is of a 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 a religious nature, and this has not been seriously disputed. Therefore, in our view, the Trust and the donation by the assessee to it fall outside the scope of section 80G. Unquote. 6.6 Thus, Hon ble SC has held that even if one purpose or object of the trust is religious or substantially religious, the trust will not be eligible for benefit of Section 80G of the Act. The Hon ble SC in the case of Upper Ganges Sugar Mills (supra) held that the assessee was not eligible for benefit u/s.80G as it supported prayer halls and places of worships, which is religious purpose. 7. In the case of the assessee, Shri Sai Bhakta Seva Trust, the main object is to const ..... X X X X Extracts X X X X X X X X Extracts X X X X
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