Sidh Shri Baba Balak Nath Ji Trust , Jawalamukhi V. CIT(Exemption), Chandigarh

ITA 299/CHANDI/2020

• Counselvise Citation: [2021] 107 COUNSELVISE.COM (IT) 8795 (ITAT-CHANDIGARH)
• Duration Of Justice: 1 year(s) 16 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 30-07-2021
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2019-2020
• Appeal Filed On: 14-07-2020
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANDEEP DAHIYA
• Keywords: Charitable institution; Condonation of delay; Set aside
• Section: 80G; 12AA

Judgement Text

,, , IN THE INCOME TAX APPELLATE TRIBUNAL DIVISION BENCH, B CHANDIGARH BEFORE MS. ANNAPURNA GUPTA, ACCOUNTANT MEMBER AND SHRI R. L. NEGI, JUDICIAL MEMBER ./ ITA NO. 299/CHD/2020 / ASSESSMENT YEAR: 2019-20 SIDH SHRI BABA BALAK NATH JI TRUST, TEH. JAWALAMUKHI, KANGRA, H. P. COMMISSIONER OF INCOME TAX , EXEMPTION , CHANDIGARH ./PAN NO : AAWTS 8003R / APPELLANT /RESPONDENT ! /ASSESSEE BY : SHRI PARIKSHIT AGGARWAL, CA ' ! / REVENUE BY : SHRI SANDEEP DAHIYA, CIT # $ % /DATE OF HEARING : 28.07. 2021 &'() % / DATE OF PRONOUNCEMENT : 30.07.2021 / ORDER PER ANNAPURNA GUPTA, A.M. : THE PRESENT APPEAL HAS BEEN FILED BY THE ASSESSEE A GAINST THE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX (EXEMPTION S), CHANDIGARH [IN SHORT REFERRED TO AS CIT(E)] DATED 28-02-2020 DENYING GRANT OF APPROVAL U/S 80G(5)(VI) OF THE INCOME TAX ACT,1961( HEREINAFTER REFERRED TO AS ACT). AT THE OUTSET, IT WAS POINTED OUT THAT THE APPEAL W AS DELAYED FOR 77 DAYS FOR WHICH AN APPLICATION SEEKING CONDONATION OF DEL AY WAS FILED BY THE LD.COUNSEL FOR THE ASSESSEE BEFORE US STATING THAT THE DELAY IN FILING OF THE APPEAL WAS ON ACCOUNT OF THE NATIONWIDE LOCKDOWN WH ICH WAS IMPOSED IN ITA NO. 299/CHD/2020 SIDH SHRI BABA BALAK NATH JI TRUST V. CIT(E), CHAND IGARH 2 THE WAKE OF THE COVID-19 PANDEMIC SINCE LAST DATE O F FILING THE APPEAL WAS 29 TH APRIL 2020 AND NATIONWIDE LOCKDOWN WAS IMPOSED MUC H PRIOR TO THAT IN THE MONTH OF MARCH, 2020 ITSELF. THE CONTENTS OF THE CONDONATION APPLICATION FILED BY THE ASSESSEE ARE AS UNDER: SUBJECT; PRAYER FOR CONDONATION OF DELAY IN THE CAS E OF M/S SIDH BABA BALAK NATH JI TRUST, TEH JAWALAMUKHI, KAN GRA, H.P.,PAN AAWTS8OO3R FOR A.Y. 2O19-2O. HON'BLC BENCH, KINDLY REFER TO THE MATTER CITED ABOVE. THE PRESENT APPEAL IS AGAINST THE APPELLATE ORDER PASSED U/S 12AA BY WORT HY CIT (EXEMPTIONS). THE FACTS OF THE CASE ARE AS UNDER: THE WORTHY CIT(EXEMPTIONS) VIDE ITS ORDER DTD. 28.0 2.2020 REJECTED THE APPLICATION FOR GRANTING APPROVAL OF U/S 80G OF THE ACT , AGAINST WHICH I AM FILING THE APPEAL BEFORE THE HON'BLE ITA T. THAT THE LAST DATE OF FILING OF APPEAL AGAINST THE ABOVE SUBJECT ORDER WAS 29.04.2020. 3. THAT AS REGARDS THE REASON FOR DELAY IN FILING A PPEAL BEFORE THE HON'BLE ITAT, WAS THE NATION WIDE LOCKDOWN IMPO SED BY THE GOVERNMENT OF INDIA IN WAKE OF COVID-19 PAN DEMIC. THEREFORE, THERE WAS NO INTERSTATE MOVEMENT ALLOWED WHIC H WAS THE REASON FOR DELAY IN AUTHENTICATION OF THE APPEAL DOCUMENTS LYI NG AT THE CHANDIGARH OFFICE OF THE AUTHORIZED REPRESENTATIVE. 4. THAT THERE WAS REASONABLE AND BONAFIDE CAUSE IN NOT FILING THE APPEAL IN PRESCRIBED TIME BEFORE THE HON'BLC ITAT. T HE DELAY IN FILING OF THE APPEAL DESERVES TO BE CONDONED AND I PRAY TH AT THE SAME MAY PLEASE BE CONDONED. I DESERVE TO BE HEARD ON ME RITS OF THE CASE AND I UNDERTAKE TO CO-OPERATE FULLY TOWARDS EA RLY DISPOSAL OF THIS MATTER. A DULY SWORN & ATTESTED AFFIDAVIT OF THE APPELLANT, IN THIS REGARD, IS ATTACHED (PAGES 3 ).LN THE LIGHT OF ABOVE FACTS, SUBMISSION, LEGAL POSITION AND MORE SO IN THE INTEREST OF NATURAL JUS TICE, IT IS PRAYED THAT THE DELAY IN FILING OF MY APPEAL MAY PLEASE BE CONDONED. I SHALL BE HIGHLY OBLIGED. I FURTHER UNDERTAKE TO CO-OPERATE AND PARTICIPATE F ULLY TOWARDS EARLY DISPOSAL OF THIS MATTER. 2. THE LD. COUNSEL FOR THE ASSESSEE, THEREFORE, PR AYED THAT THE DELAY BE CONDONED. THE LD. DR DID NOT OPPOSE THE SAME. ITA NO. 299/CHD/2020 SIDH SHRI BABA BALAK NATH JI TRUST V. CIT(E), CHAND IGARH 3 3. WE HAVE PERUSED THE CONTENTS OF THE APPLICATION SEEKING CONDONATION OF DELAY AND ARE CONVINCED THAT THE ASSESSEE HAD RE ASONABLE CAUSE FOR THE DELAY SINCE THE NATIONWIDE LOCKDOWN, DURING THE PER IOD IN WHICH THE ASSESSEE WAS REQUIRED TO FILE ITS APPEAL, MADE IT I MPOSSIBLE TO DO SO. IN VIEW OF THE SAME, THE DELAY IS CONDONED. ORDER WAS PRONOUNCED IN THE OPEN COURT. 2. THE ASSESSEE HAS CHALLENGED THE ORDER, RAISING THE FOLLOWING GROUNDS:- 1. THAT ON THE FACTS, CIRCUMSTANCES AND LEGAL POSI TION OF THE CASE, THE WORTHY CIT IN ITS ORDER DATED 28.02.2020 HAS ERRED IN PASS ING THAT ORDER IN CONTRAVENTION OF THE PROVISIONS OF SECTION 80G(5)(V I) OF THE INCOME TAX ACT, 1961. 2. THAT ON FACTS, CIRCUMSTANCES AND LEGAL POSITION OF THE CASE, THE WORTHY CIT(E) HAS ERRED IN REJECTING THE APPLICATION OF TH E APPELLANT TRUST FOR GRANTING APPROVAL U/S 80G OF THE ACT ON FLIMSY GROU NDS EVEN WHEN THE OBJECTS AND ACTIVITIES OF THE APPELLANT WERE CHARIT ABLE NATURE AND IT DESERVED TO BE GRANTED SAID REGISTRATION. 3. THAT ON THE FACTS, CIRCUMSTANCES AND LEGAL POSIT ION OF THE CASE, THE WORTHY CIT(E) HAS ERRED IN REJECTING THE APPLICATION OF TH E APPELLANT SOCIETY FOR GRANTING APPROVAL U/S 80G OF THE ACT WITHOUT AFFORD ING REASONABLE OPPORTUNITY TO THE APPELLANT. 4. THAT THE APPELLANT CRAVES LEAVE FOR ANY ADDITION , DELETION OR AMENDMENT IN THE GROUNDS OF APPEAL ON OR BEFORE THE DISPOSAL OF THE SAME. 3. BEFORE US LD. COUNSEL FOR THE ASSESSEE POINTED OUT FROM PARA 5 OF THE ORDER OF THE CIT(E) THAT THE APPLICATION OF THE ASSESSEE FOR APPROVAL U/S 80G FILED ON 19.08.2019 WAS REJECTED FOR THE RE ASON THAT IT WAS ITA NO. 299/CHD/2020 SIDH SHRI BABA BALAK NATH JI TRUST V. CIT(E), CHAND IGARH 4 FOUND TO HAVE BEEN CREATED FOR RELIGIOUS PURPOSES, WHICH, IT WAS POINTED OUT, AS PER SECTION 80G (5) EXPLANATION 3 DID NOT Q UALIFY AS CHARITABLE PURPOSES TO BE ENTITLED TO APPROVAL UNDER THE SAID SECTION. OUR ATTENTION WAS DRAWN TO SECTION 80G(5) AND THE EXPLANATION 3 T HERETO AS UNDER: SUB-SECTION (5) THIS SECTION APPLIES TO DONATIONS TO ANY INSTITUTION OR FUND REFERRED TO IN SUB-SECTION (IV) OF CLAUSE (A) OF SU B-SECTION (2), ONLY IF IT IS ESTABLISHED IN INDIA FOR A CHARITABLE PURPOSE AND I F IT FULFILS THE FOLLOWING CONDITIONS, NAMELY:- [(I). (A). (B) (C). EXPLANATION 3. IN THIS SECTION CHARITABLE PURPOSE DOES NOT INCLUDE ANY PURPOSE THE WHOLE OR SUBSTANTIALLY THE WHOLE OF WHICH IS OF A RELIGIOUS NATURE. HE THEREAFTER STATED THAT THE REASON FOR HOLDING AN D ARRIVING TO THIS CONCLUSION THAT IT WAS A RELIGIOUS TRUST, WAS THE T ITLE OF THE TRUST DEED AS BEING TEMPLE TRUST DEED AND AIMS AND OBJECTS IN T HE OPENING LINE STATING THE TRUST TO BE A PUBLIC RELIGIOUS TRUST. OUR ATTENTION WAS DRAWN TO PARA 5 OF THE LD. CIT(E) ORDER INCORPORATI NG THE AFORESAID FINDINGS AS UNDER: 5. ONLINE REPLY WAS SUBMITTED BY THE APPLICANT ON 11.02.2020. ON PERUSAL OF THE DETAILS/DOCUMENTS SUBMITTED BY THE APPLICANT IT TRA NSPIRES THAT THE APPLICANT TRUST HAS BEEN CREATED FOR RELIGIOUS PURPOSE. THE ISSUES LEADING TO THIS CONCLUSION ARE DISCUSSED BELOW: (A) ON PERUSAL OF THE TRUST DEED, IT HAS BEEN OBSERVED THAT THE DEED OF THE TRUST IS TEMPLE TRUST DEED AND IT HAS ALSO BEEN ADMITTED IN THE OPENING LINE OF THE DEED THAT THE TRUST IS A PUBLIC RELIGIOUS TRUST. AL SO, IT HAS BEEN STATED IN THE ITA NO. 299/CHD/2020 SIDH SHRI BABA BALAK NATH JI TRUST V. CIT(E), CHAND IGARH 5 TRUST DEED THAT THE SETTLER IS DESIROUS OF MAKING A RELIGIOUS TRUST WHOLLY FOR RELIGIOUS PURPOSES OF THE SAID MONEY. FURTHER, ON F URTHER PERUSAL OF THE AIMS AND OBJECTS OF THE TRUST IT HAS BEEN REFERRED THAT IT HAS BEEN INCORPORATED WHOLLY FOR THE RELIGIOUS PURPOSES. THE RELEVANT EXT RACT OF THE AIMS AND OBJECT OF THE TRUST IN THIS REGARD IS AS UNDER:- 3. AIMS & OBJECT OF THE TRUST THAT THE AIMS & OBJECTIVES OF THE TRUST SHALL BE W HOLLY FOR THE RELIGIOUS PURPOSES AND INCOMES SHALL BE APPLIED FOR THE SAME AND ACCUMULATED IN INDIA WHOLLY FOR RELIGIOUS PURPOSES WITHOUT PREJUDICE TO GENERALITY OF PROVISIONS AFORESAID AND THE FOLLOWIN G SHALL BE DEEMED TO BE THE PRINCIPAL OBJECTIVES OF SIDH SHRI BABA BALAK NA TH JI TRUST:- 1. TO ESTABLISH AND CONSTRUCT THE NEW TEMPLE, DHARAMSH ALA, DISPENSARIES, MEDICAL CAMPS & OTHER RELIGIOUS INFRASTRUCTURES FOR THE POO R PEOPLE OF THE SOCIETY. (B) FURTHER, ON PERUSAL OF THE REPLY SUBMITTED IT HAS B EEN OBSERVED THAT THE APPLICANT HAS STATED THAT THE TRUST HAD BEEN INCORP ORATED FOR THE BENEFIT OF THE GENERAL PUBLIC AND NOT FOR ANY PARTICULAR RELIGIOUS COMMUNITY OR CASTE. THIS CONTENTION OF THE APPLICANT IS REBUTTED ON THE FACT THAT THE AIMS AND OBJECTS OF THE TRUST ARE WHOLLY FOR RELIGIOUS PURPOSE. ALSO, T HE TRUST HAS BEEN GRANTED REGISTRATION U/S 12AA OF THE ACT ON 19.07.2019 WITH SILENT ACTIVITIES AS RELIEF OF THE POOR AND RELIGIOUS ACTIVITIES. THEREAFTER LD. COUNSEL FOR THE ASSESSEE CONTENDED T HAT THE FINDINGS OF THE LD. CIT WERE BASED OR INCORRECT APPRECIATION OF FACTS AND THAT THE ASSESSEE TRUST WAS NOT WHOLLY OR SUBSTANTIALLY OF R ELIGIOUS NATURE AS REQUIRED BY EXPLANATION 3 TO DISQUALIFY AS A CHARIT ABLE TRUST. HHS ARGUMENTS TO THIS EFFECT BRIEFLY STATED ARE AS UNDE R: (1) ONE THAT THE AIMS AND OBJECTS OF THE TRUST HAVE NO T BEEN READ ENTIRELY WHICH WOULD ON A COMPLETE READING WOULD SH OW THAT THE OBJECTS WERE PRIMARILY CHARITABLE FOR THE OPENI NG OF PUBLIC AND THE POOR AND NEEDY. OUR ATTENTION WAS DRAWN TO THE OBJECTS ITA NO. 299/CHD/2020 SIDH SHRI BABA BALAK NATH JI TRUST V. CIT(E), CHAND IGARH 6 OF THE TRUST AT PAGE 14 TO 16 OF THE PAPER BOOK FIL ED BEFORE US IS AS UNDER: 3. AIMS & OBJECT OF THE TRUST THAT THE AIMS & OBJECTIVES OF THE TRUST SHALL BE WH OLLY FOR THE RELIGIOUS PURPOSES AND INCOMES SHALL BE APPLIED FOR THE SAME AND ACCUMULATED IN INDIA WHOLLY FOR RELIGIOUS PURPOSES WITHOUT PREJUDI CE TO GENERALITY OF PROVISIONS AFORESAID AND THE FOLLOWING SHALL BE DEE MED TO BE THE PRINCIPAL OBJECTIVES OF SIDH SHRI BABA BALAK NATH JI TRUST:- 1. TO ESTABLISH AND CONSTRUCT THE NEW TEMPLE, DHARAMSH ALA, DISPENSARIES, MEDICAL CAMPS & OTHER RELIGIOUS INFRASTRUCTURES FOR THE POOR PEOPLE OF THE SOCIETY. 2. TO PROVIDE FREE EDUCATION TO THE POOR PEOPLE OF THE SOCIETY, TO PROVIDE FREE MEDICAL FACILITY TO THE PUBLIC AND TO ORGANIZE BLOOD DONATION CAMPS. 3. AS AND WHEN NEED OF AN HOUR, THE TRUST WILL WORK AS SHOULDER TO SHOULDER WITH THE CONCERNED STATE GOVERNMENT IN TAC KLING ANY EPIDEMICS AND OTHER SERIOUS SITUATIONS THAT CAME ACROSS THE S TATE. 4. TO FORMULATE SPIRITUAL TRUTHS AS FUNDAMENTAL FACTOR S IN HUMAN EVOLUTION. THIS DOES NOT MEAN THE FORMULATION OF CREED, BUT RA THER THE RECOGNITION OF THE SPIRITUAL INSTINCT INHERENT IN ALL HUMAN BEI NGS. EVERY RELIGION THE WORLD HAS KNOWN HAS BEEN AN ATTEMPT TO INTERPRET TH IS PRIMARY IMPULSE IN HUMAN NATURE. TO THE EXTENT THAT INDIVIDUALS ARE ABLE TO INTERPRET THIS IMPULSE WISELY, HUMANITY IS ABLE TO UNDERSTAND WHAT TRUE RELIGION. 5. TO OFFER RELIGIOUS AND SPIRITUAL SERVICES TO ONE AN D ALL. 6. TO WORK FOR THE SPIRITUAL UPLIFTMENT OF PEOPLE BY T AKING THEM TO A HIGHER LEVEL OF CONSCIOUSNESS AND GUIDING THEM TO A TRANSCENDENTAL LEVEL OF UNIVERSAL UNDERSTANDING AND COSMIC AWARENE SS. 7. TO WORK FOR THE PROMOTION OF THE SPIRIT OF BROTHERH OOD OF MAN AND FATHERHOOD OF GOD, AND LOVE AMONGST ALL HUMAN BEING S. ITA NO. 299/CHD/2020 SIDH SHRI BABA BALAK NATH JI TRUST V. CIT(E), CHAND IGARH 7 8. TO ADVICE AND ENCOURAGE PEOPLE ON MORAL VALUES, TRU TH, RIGHTEOUSNESS PEACE AND NON-VIOLENCE. 9. TO PROMOTE THE UNDERSTANDING AND INTEGRATION OF ALL THE RELIGIONS OF THE WORLD FOR PEACE, LOVE, HARMONY AND TOLERANCE IN THE SOCIETY, COMMUNITIES AND BETWEEN ALL RACES OF THE WORLD. 10. TO RENDER HOLISTIC HEALING SERVICES LIKE YOGA, MEDI TATION, JYOTISHAM, AYURVEDA, NATURE CARE, MANTRA, HEALING, DEVOTIONAL MUSIC AND PRAYERS. 11. TO REACH OUT TO THE YOUTH OF TODAY AND IMPART MORAL ADVICE AND SPIRITUAL WISDOM ON THE RIGHTEOUS WAYS OF LIFE AND HUMAN VALU ES, SO THAT THEY MAY GROW UP TO BECOME GOOD CITIZENS AND LEAD THEIR COUNTRY TO PROSPERITY. 12. TO WORK TOWARDS HERALDING THE NEW ERA INTO THE GOLD EN AGE OF TRUTH, MORALITY, JUSTICE, UNITY, LOVE, NON-VIOLENCE, PEACE AND PROSPERITY SO THAT HUMANITY MAY LIVE IN HARMONY WITH NATURE AND AS PER THE DIVINE WILL. 13. TO PROMOTE THE DIVINE AND SPIRITUAL MESSAGES AMONGS T THE FELLOW HUMANS IN UNIVERSE, DEVOTEES PERFORM OUTREACH ACTIV ITIES BY MEETING IN DIFFERENT PLACES AND CONDUCTING BHAJANS AND RELIGIO US DISCOURSES MESSAGE TO THE PUBLIC. 14. TO PROMOTE UNIVERSAL BROTHERHOOD AND HARMONY IN THE SOCIETY BY CONDUCTING SEMINARS ON UNIVERSAL PEACE, LOVE, AND N ON VIOLENCE. 15. TO ESTABLISH AND RUN THE SEMINARS IN EDUCATIONAL IN STITUTIONS BASED ON HUMAN VALUES SUCH AS TRUTH, RIGHT CONDUCT, PEACE AN D NON VIOLENCE PRESCRIBING A CHARACTER-ORIENTED. 16. TO INCULCATE THE SANATANA DHARMA AND TO HELP THE PO OR AND NEEDY OF THE SOCIETY, AS SERVICE TO HUMAN BEINGS IS SERVICE TO G OD. 17. IT IS BEING UNDERSTOOD THAT OBJECTS OF THE TRUST WI LL NOT INCLUDE OBJECTS INVOLVING THE CARRYING ON OF ANY ACTIVITY FOR PROFI T WHICH DOES NOT CONFIRM TO THE DEFINITION OF RELIGIOUS PURPOSE AS GIVEN IN THE SECTION 2(5) OF INCOME TAX ACT, 1961. 18. THE TRUST MONEYS SHALL BE INVESTED IN THE MANNER AS DEFINED IN SECTION 11(5) OF INCOME TAX ACT, 1961. ITA NO. 299/CHD/2020 SIDH SHRI BABA BALAK NATH JI TRUST V. CIT(E), CHAND IGARH 8 (2) THAT IT WAS GRANTED REGISTRATION AS A CHARITABLE TR UST U/S 12AA OF THE ACT FOR BOTH THE CHARITABLE & RELIGIOUS PURP OSES AND THEREFORE IT COULD NOT BE SAID TO BE ESTABLISHED WH OLLY FOR RELIGIOUS PURPOSE. (3) THE FINANCIAL STATEMENT OF THE ASSESSEE TRUST DEMON STRATED THAT NO RELIGIOUS ACTIVITY OF ANY SORT HAD BEEN CARRIED OUT BY THE ASSESSEE TRUST. OUR ATTENTION WAS DRAWN TO THE BALA NCE SHEET OF THE ASSESSEE TRUST FOR THE FINANCIAL YEAR ENDING 31 ST MARCH, 2019 PLACED BEFORE US AT PAPER BOOK PAGE NO. 45 TO 51. TO THIS THE LD. DR COUNTERED BY STATING THAT THE FA CT THAT IT WAS A TEMPLE TRUST DEED ITSELF SHOWED THAT THE PRIMARY PURPOSE OF ESTABLISHING THE TRUST WAS FOR CONSTRUCTING A NEW T EMPLE WHICH IS EVIDENT FROM THE AIMS AND OBJECTS MENTIONED AT POINT NUMBER 1, IN THE TRUST DEED AND THAT THIS IS THE PRIMARY OBJECTS OF THE TR UST WHILE THE REST ARE ONLY SECONDARY. IN THIS REGARD HE ALSO POINTED OUT THAT CERTAIN PHOTOGRAPHS OF THE ACTIVITIES OF THE CONSTRUCTION S ITE WHERE THE TRUST WAS LOCATED, WHICH WAS FILED BEFORE CIT(E), SHOWED THAT A TEMPLE WAS UNDER CONSTRUCTION. THE MAIN THRUST OF THE ARGUMENT OF TH E LD. DR SUPPORTING THE ORDER OF THE CIT(E) WAS THAT THE PRIMARY OBJECT WAS CONSTRUCTION OF TEMPLE AND IMPARTING SPIRITUAL EDUCATION WHICH CLEA RLY WERE ACTIVITIES BEING RELIGIOUS IN NATURE AND THEREFORE THE APPROVA L U/S 80G HAD BEEN RIGHTLY DENIED. THE LD. COUNSEL FOR THE ASSESSEE CO UNTERED BY STATING THAT THE PHOTOGRAPHS OF THE CONSTRUCTION SITE WERE OF A HALL BEING ITA NO. 299/CHD/2020 SIDH SHRI BABA BALAK NATH JI TRUST V. CIT(E), CHAND IGARH 9 CONSTRUCTED FOR CONDUCTING VARIOUS ACTIVITIES TO BE CARRIED OUT BY THE TRUST AND TO THIS EFFECT AS A REPLY HAD BEEN FILED TO THE LD. CIT(E) ALSO MENTIONING THE AFORESAID FACTS, OUR ATTENTION WAS D RAWN TO PAGE NO. 5 OF THE PAPER BOOK CONTAINING THE REPLY TO THE CIT(E) A T POINTED NO. 3 IS AS UNDER: 3. QUERY NO. 3: AS REGARD TO THIS QUERY, THE TRUST IS IN THE PROCE SS OF CONSTRUCTION OF PLACE WHERE SPIRITUAL KNOWLEDGE AND EDUCATION WILL DISSEMINATED. THE PHOTOS OF CONSTRUCTION SITE WHERE THE TRUST IS SITUATED IS ENCLOSED HEREWITH. NO ACTIVITIES HAVE BEEN CONDUCTED SINCE THE INCEPTION OF THE TRUST BECAUSE OF THE ONGOING CONSTRUCTION. HOWEVER, AS SOON AS THE CONST RUCTION IS COMPLETED THE TRUST IS MOTIVATED TO CONDUCT ACTIVITIES SUCH AS TO ESTAB LISH AND CONSTRUCT DHARAMSHALA, DISPENSARIES, MEDICAL CAMPS, YOGA CAMPS, AND TO PRO VIDE FREE EDUCATION, MEDICAL FACILITY TO POOR PEOPLE IRRESPECTIVE OF ANY RELIGIO N. ALL THESE ACTIVITIES WILL BE DONE WITHIN THE TERRITORIAL BOUNDARIES OF INDIA ONL Y. 4. WE HAVE HEARD THE RIVAL CONTENTIONS. THE DENIAL OF APPROVAL U/S 80G OF THE ACT IN THE PRESENT CASE IS FOR THE REASO N THAT THE ASSESSEE TRUST WAS FOUND TO BE WHOLLY FOR RELIGIOUS PURPOSES . EXPLANATION 3 TO SECTION 80G STATING THAT RELIGIOUS PURPOSES SHALL N OT BE CONSTRUED AS CHARITABLE PURPOSES FOR THE PURPOSE OF GRANT APPROV AL OF U/S 80G, HAS BEEN REPRODUCED ABOVE IN THE EARLIER PART OF OUR OR DER AND THERE IS NO DISPUTE VIS--VIS THIS POSITION OF LAW THAT CHARITA BLE TRUST CARRYING OUT ACTIVITIES WHICH ARE PRIMARILY RELIGIOUS IN NATURE ARE NOT ENTITLED TO APPROVAL U/S 80G OF THE ACT. HAVING SAID SO WHAT IS PERTINENT THEREFORE NOW TO DETERMINE IS WHETHER THE FINDINGS OF THE CIT(E) THAT ASSESSEE TRUST WAS WHOLLY RELIGIOUS IS ITA NO. 299/CHD/2020 SIDH SHRI BABA BALAK NATH JI TRUST V. CIT(E), CHAND IGARH 10 CORRECT OR NOT. FOR THE SAID PURPOSE IT IS NECESSAR Y TO UNDERSTAND THE MEANING AND IMPORT OF THE PHRASE RELIGIOUS PURPOSES . RELIGIOUS PURPOSE MEANS A PURPOSE WHICH RELATES EXCLUSIVELY TO RELIGI OUS WORSHIP, TEACHING, SERVICE OR PERFORMANCE OF RELIGIOUS RITES . IT REFERS TO ALL ACTIONS TAKEN TO ADVANCE RELIGION BY WAY OF MAINTAI NING OR PROPAGATING RELIGION OR SUPPORTING PUBLIC RELIGIOUS SERVICE. IN THE PRESENT CASE, THE FINDINGS OF THE LD.CIT(E ) THAT THE ASSESSEE TRUST IS WHOLLY FOR RELIGIOUS PURPOSES IS BASED ON THE FACTS THAT THE TRUST DEED IS TITLED TEMPLE TRUST DEED AND THE OPENING LINE OF THE AIMS AND OBJECTS OF THE DEED STATE THAT THE TRUST IS WHO LLY FOR RELIGIOUS PURPOSE. THE LD. CIT(E)S FINDING ARE NOT BASED ON THE ACTIVITIES BEING CARRIED OUT BY THE TRUST ,WHICH WE HAVE NOTED THE A SSESSEE TO HAVE STATED BEFORE HIM AS NOT HAVING COMMENCED. SINCE THE LD.CIT(E)S FINDINGS ARE BASED ON THE OBJ ECTS FOR WHICH THE TRUST WAS CREATED, THE ENTIRE AIMS AND OBJECTS HAVE TO BE READ TO ARRIVE AT THE CORRECT CONCLUSION OF THE PURPOSE OF CREATION O F THE TRUST. ON GOING THROUGH THE SAME, WHICH ARE REPRODUCED ABOVE IN THE EARLIER PART OF OR ORDER, WE FIND NOTHING POINTING TO THE FACT THAT TH E TRUST IS WHOLLY FOR THE ADVANCEMENT OF ANY PARTICULAR RELIGION, EXCEPT FOR MENTIONING ONE OF THE OBJECTS AS CONSTRUCTION OF THE TEMPLE WHICH WE FIND GOES ON TO INCLUDE IN THE SAME LINE, CONSTRUCTION OF DHARAMSHALA, DISP ENSARIES, MEDICAL CAMPS. THE REST OF THE OBJECTS WE FIND HAVE NOTHIN G TO DO WITH THE ADVANCEMENT OF ANY PARTICULAR RELIGION NOR ARE OF T HE NATURE OF CONDUCTING ANY RELIGIOUS ACTIVITY. THE OBJECTS READ IN ENTIRETY ARE TO THE ITA NO. 299/CHD/2020 SIDH SHRI BABA BALAK NATH JI TRUST V. CIT(E), CHAND IGARH 11 EFFECT OF SERVING HUMANITY AT LARGE AND THE POOR I N PARTICULAR, BY PROVIDING FREE EDUCATION, MEDICAL FACILITY TO THE P OOR AND ALSO HELPING THOSE IN NEED DURING EPIDEMICS OR OTHER SERIOUS SI TUATIONS. THEY ARE TO THE EFFECT OF SPIRITUAL UPLIFTMENT OF THE GENERAL P UBLIC AND THE ADVANCEMENT OF MORAL VALUES, TRUTH & RIGHTEOUSNESS, PEACE AND NON VIOLENCE AMONGST THEM. IN FACT OBJECT NO. 9 MENTION S PROMOTING THE UNDERSTANDING AND INTEGRATION OF ALL RELIGION OF TH E WORLD FOR PEACE, LOVE AND HARMONY. READING THE ENTIRE AIMS AND OBJECTS OF THE TRUST, THEREFORE IT IS CLEAR THAT THE PURPOSE IS DEFINITELY NOT FOR PROMOTING OR ADVANCEMENT OF RELIGION BUT IS PRIMARILY TO SERVE H UMANITY AT LARGE IN ALL POSSIBLE CAPACITIES. WE HAVE NOTED THAT EVEN TH E REGISTRATION GRANTED TO THE ASSESSEE TRUST IS NOT FOR RELIGIOUS PURPOSE ALONE BUT BY RECOGNIZING THAT IT EXISTS FOR CHARITABLE AND RELIG IOUS PURPOSES. HAVING SO RECOGNIZED THE ASSESSEE TRUST, THE DEPARTMENT CA NNOT NOW TAKE A DIFFERENT VIEW OF THE FACT SITUATION AND HOLD THAT THE ASSESSEE TRUST IS EXISTING PRIMARILY FOR RELIGIOUS PURPOSES. FURTHER THE MERE FACT THAT THE ASSESSEE IS CONSTRUCTING A TEMPLE, THOUGH VEHEMENTL Y DISPUTED BY THE LD. COUNSEL FOR THE ASSESSEE, ALONE DOES NOT LEAD T O THE CONCLUSION THAT IT IS EXISTING FOR RELIGIOUS PURPOSES. THIS WOULD H AVE BEEN THE SITUATION WHERE THE SOLE OBJECT OF THE TRUST WAS CONSTRUCTION AND MAINTENANCE OF TEMPLE AND CARRYING OUT RELIGIOUS ACTIVITIES IN THE TEMPLE .BUT IN THE PRESENT CASE THIS IS NOT THE FACT. TEMPLE CONSTRUCT ION IS ONE OF THE OBJECTS BUT BEYOND THAT THE OBJECTS ARE IN THE LARG ER INTEREST OF SERVICE TO HUMANITY. WE THEREFORE HOLD THAT THE FINDINGS OF TH E LD. CIT(E) THAT THE ITA NO. 299/CHD/2020 SIDH SHRI BABA BALAK NATH JI TRUST V. CIT(E), CHAND IGARH 12 ASSESSEE TRUST WAS RELIGIOUS IN NATURE IS NOT BASE D ON THE CORRECT APPRECIATION OF THE FACTS. THAT THE ASSESSEE TRUST IS THEREFORE NOT COVERED BY EXPLANATION 3 TO SECTION 80G TO BE TREATED AS NO T FOR CHARITABLE PURPOSES AND THEREFORE IS ENTITLED TO APPROVAL U/S 80G OF THE ACT. THE ORDER OF THE LD. CIT(E) IS ACCORDINGLY SET ASIDE AN D HE IS DIRECTED TO GRANT APPROVAL TO THE ASSESSEE TRUST. 5. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS ALLOW ED. ORDER PRONOUNCED IN THE OPEN COURT ON 30.07.2021. SD/- SD/- (R. L. NEGI) (ANNAPURNA GUPTA) JUDICIAL MEMBER ACCOUNTANT ME MBER DATED : 30.07.2021 GP/SR.PS '* +,-, / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT 2. / THE RESPONDENT 3. # . / CIT 4. # . ( )/ THE CIT(A) 5. ,/0 1 , %1 , 23405 / DR, ITAT, CHANDIGARH 6. 046$ / GUARD FILE '* # / BY ORDER, / ASSISTANT REGISTRAR