Shri Dharm Prachar Anashrit Sewashram Trust, Mathura V. C.I.T.-I, Agra

ITA 380/AGR/2013

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 72783 (ITAT-AGRA)
• Duration Of Justice: 1 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 14-02-2014
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: DB
• Next Hearing Date: 05-02-2014
• Assessment Year: misc
• Appeal Filed On: 30-12-2013
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: ANIRUDH KUMAR
• Assessee Lawyers: M M AGARWAL
• Keywords: Charitable institution
• Section: 10; 11; 80G; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL, AGRA BENCH, AGRA BEFORE SHRI BHAVNESH SAINI, JUDICIAL MEMBER AND SHRI PRAMOD KUMAR, ACCOUNTANT MEMB ER ITA NO. 370/AGRA/2013 YUG CHETNA PARMARTH TRUST, VS. COMMISSIONER OF GANDHI NAGAR, KISHORE PURA, INCOME-TAX-I, AGRA. VRINDAVAN, MATHURA. (PAN : AAATY 3428 J) ITA NO. 380/AGRA/2013 SHRI DHARM PRACHAR ANASHRIT SEWASHRAM TRUST, VS. C OMMISSIONER OF SHRIJI VATIKA, PURANI KALIDEH, PARIKRMA MARG, INCO ME-TAX I, AGRA. VRINDAVAN, MATHURA. (PAN : AAITS 0335 A) (APPELLANTS) (RESPONDENT) APPELLANTS BY : SHRI M.M. AGARWAL, C.A. RESPONDENT BY` : SHRI ANIRUDH KUMAR, CIT/DR DATE OF HEARING : 05.02.2014 DATE OF PRONOUNCEMENT : 14.02.2014 ORDER PER BHAVNESH SAINI, J.M.: THIS ORDER SHALL DISPOSE OF BOTH THE ABOVE APPEALS FILED BY DIFFERENT ASSESSEES CHALLENGING THE ORDER U/S. 80G(5) OF THE IT ACT. 2. THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ISSUE IS SAME IN BOTH THE APPEALS AND MAINLY ARGUED IN ITA NO. 370/AGRA/2013 AND STATED THAT THE FINDING IN ITA NO. 370 & 380/AGRA/2013 2 THAT CASE MAY BE FOLLOWED IN ITA NO. 380/AGRA/2013. BOTH THE APPEALS ARE, THEREFORE, DISPOSED OF THROUGH THIS COMMON CONSOLID ATED ORDER. 3. WE HAVE HEARD THE LD. REPRESENTATIVES OF BOTH TH E PARTIES AND PERUSED THE MATERIAL ON RECORD. ITA NO. 370/AGRA/2013 ( YUG CHETNA PARMARTH TRUST) : 4. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT-I, AGRA DATED 21.11.2013, CHALLENGING THE ORDER U/S. 80G(5) OF THE IT ACT REJECTING THE APPLICATION OF THE ASSESSEE OF APPROVAL UNDER THE A BOVE PROVISIONS. 5. BRIEFLY, THE FACTS OF THE CASE ARE THAT THE ASSE SSEE MOVED APPLICATION BEFORE THE LD. CIT FOR APPROVAL U/S. 80G(5) OF THE IT ACT. THE LD. CIT ON PERUSAL OF THE TRUST DEED OF THE ASSESSEE TRUST NOTICED THAT THE D OMINANT OBJECTS ARE FOR THE BENEFIT OF HINDU COMMUNITY ONLY AND PURELY RELIGIOUS IN NAT URE. THE SAME WERE REPRODUCED IN THE IMPUGNED ORDER. IT WAS, THEREFORE , FOUND THAT THESE OBJECTS CONTRAVENE THE PROVISIONS OF SECTION 80G(5)(II), (I II) AND EXPLANATION 3 TO SECTION 80G (5) OF THE IT ACT. THE SAME ARE ALSO REPRODUCED IN THE IMPUGNED ORDER. THE LD. CIT WAS, THEREFORE, OF THE VIEW THAT DOMINANT O BJECTS OF THE ASSESSEE TRUST ARE RELIGIOUS IN NATURE AND FOR THE BENEFIT OF THE HIND U COMMUNITY. HE HAS RELIED UPON THE DECISION IN THE CASE OF CIT VS. UPPER GANGAGE S UGAR MILLS LTD., 154 ITR 308 ITA NO. 370 & 380/AGRA/2013 3 (CALCUTTA), IN WHICH IT WAS HELD THAT ESTABLISHMENT OR MAINTENANCE OF PUBLIC PLACES OF WORSHIP AND PRAYER HALLS HAS BEEN HELD TO BE A R ELIGIOUS PURPOSE. THE AFORESAID DECISION WAS CONFIRMED BY THE HONBLE SUPREME COURT IN THE CASE OF UPPER GANGAGE SUGAR MILLS LTD. VS. CIT, 227 ITR 578. THE LD. CIT, THEREFORE, HELD THAT THE ASSESSEE DID NOT QUALIFY THE CONDITIONS OF SECT ION 80G(5) AND IS NOT A TRUST FOR CHARITABLE PURPOSE, THEREFORE, DID NOT QUALIFY FO R APPROVAL UNDER THE ABOVE PROVISION. THE APPLICATION WAS ACCORDINGLY REJECTED . 6. THE LD. COUNSEL FOR THE ASSESSEE DID NOT DISPUTE THE FINDING OF THE LD. CIT THAT THE DOMINANT OBJECTS OF THE ASSESSEE TRUST ARE RELI GIOUS IN NATURE AND MEANT FOR BENEFIT OF HINDU COMMUNITY. HE HAS, HOWEVER, SUBMIT TED THAT INCOME AND EXPENDITURE ACCOUNT WAS FILED BEFORE THE LD. CIT AN D ACCORDING TO SECTION 80G(5B) OF THE IT ACT, WHEN THE EXPENDITURE INCURRED BY IT ON RELIGIOUS ACTIVITIES BEING LESS THAN 5% OF THE TOTAL INCOME, APPROVAL U/S. 80G(5) C OULD NOT BE REFUSED ON THE GROUND THAT THE ASSESSEE IS CARRYING ON ONLY RELIGI OUS ACTIVITIES. IN SUPPORT OF HIS CONTENTION, HE HAS RELIED UPON THE DECISION OF HON BLE KARNATAKA HIGH COURT IN THE CASE OF DIT (EXEMPTION) VS. INTERNATIONAL SOCIETY F OR KRISHNA CONSCIOUSNESS, 54 DTR (KAR) 126, IN WHICH IT WAS HELD ASSESSEE SOCIETY HAVING BEEN GRANTED REGISTRATION U/S. 12AA AS WELL AS UNDER S. 80G(5), AND THE EXPENDITURE INC URRED BY IT ON RELIGIOUS ACTIVITY IN THE PRECEDING TWO YEARS BEING LESS THAN 5 PER CENT OF THE TOTAL INCOME, RENEWAL OF APPROVAL UNDER S. 8 0G(5) COULD NOT BE ITA NO. 370 & 380/AGRA/2013 4 REFUSED ON THE GROUND THAT THE ASSESSEE IS CARRYING ON ONLY RELIGIOUS ACTIVITIES. 7. ON THE OTHER HAND, THE LD. DR RELIED UPON THE OR DER OF THE LD. CIT AND SUBMITTED THAT THE PROVISIONS OF SECTION 80G(5) APP LY TO CHARITABLE TRUSTS ONLY AND SINCE THE ASSESSEE IS ADMITTEDLY HAVING DOMINANT OB JECTS WHICH ARE RELIGIOUS IN NATURE AND FOR THE BENEFIT OF HINDU COMMUNITY, THER EFORE, THE ASSESSEE WOULD NOT BE ENTITLED FOR ANY RELIEF. 8. WE HAVE CONSIDERED THE RIVAL SUBMISSIONS AND THE MATERIAL AVAILABLE ON RECORD. THE RELEVANT PROVISIONS FOR DISPOSAL OF APP EAL ARE REPRODUCED AS UNDER : 8.1 SECTION 80G(5)(I), (II) & (III) PROVIDES AS UND ER :- (5) THIS SECTION APPLIES TO DONATIONS TO ANY INSTIT UTION OR FUND REFERRED TO IN SUB- CLAUSE (IV) OF CLAUSE (A) OF SUB-SECTION (2), ONLY IF IT IS ESTABLISHED IN INDIA FOR A CHARITABLE PURPOSE AND IF IT FULFILS THE FOLLOWING CONDITIONS, NAMELY : (I) WHERE THE INSTITUTION OR FUND DERIVES ANY INCO ME, SUCH INCOME WOULD NOT BE LIABLE TO INCLUSION IN ITS TOTAL INCOME UNDER THE P ROVISIONS OF SECTIONS 11 AND12 OR CLAUSE (23AA)] OR CLAUSE (23C) OF SECTI ON 10 : PROVIDED THAT WHERE AN INSTITUTION OR FUND DERIVES ANY INCO ME, BEING PROFITS AND GAINS OF BUSINESS, THE CONDITION THAT SUCH INCO ME WOULD NOT BE LIABLE TO INCLUSION IN ITS TOTAL INCOME UNDER THE PROVISIONS OF SECTION 11 SHALL NOT APPLY IN RELATION TO SUCH INCOME, IF (A) THE INSTITUTION OR FUND MAINTAINS SEPARATE BOO KS OF ACCOUNT IN RESPECT OF SUCH BUSINESS; ITA NO. 370 & 380/AGRA/2013 5 (B) THE DONATIONS MADE TO THE INSTITUTION OR FUND ARE NOT USED BY IT, DIRECTLY OR INDIRECTLY, FOR THE PURPOSES OF SUCH BUSINESS; A ND (C) THE INSTITUTION OR FUND ISSUES TO A PERSON MAK ING THE DONATION A CERTIFICATE TO THE EFFECT THAT IT MAINTAINS SEPARAT E BOOKS OF ACCOUNT IN RESPECT OF SUCH BUSINESS AND THAT THE DONATIONS REC EIVED BY IT WILL NOT BE USED, DIRECTLY OR INDIRECTLY, FOR THE PURPOSES OF S UCH BUSINESS;]] (II) THE INSTRUMENT UNDER WHICH THE INSTITUTION OR FUND IS CONSTITUTED DOES NOT, OR THE RULES GOVERNING THE INSTITUTION OR FUND DO N OT, CONTAIN ANY PROVISION FOR THE TRANSFER OR APPLICATION AT ANY TIME OF THE WHOLE OR ANY PART OF THE INCOME OR ASSETS OF THE INSTITUTION OR FUND FOR ANY PURPOSE OTHER THAN A CHARITABLE PURPOSE; (III) THE INSTITUTION OR FUND IS NOT EXPRESSED TO BE FOR THE BENEFIT OF ANY PARTICULAR RELIGIOUS COMMUNITY OR CASTE; 8.2 SECTION 80G (5B) OF THE IT ACT PROVIDES AS UNDER : (5B) NOTWITHSTANDING ANYTHING CONTAINED IN CLAUSE ( II) OF SUB-SECTION (5) AND EXPLANATION 3, AN INSTITUTION OR FUND WHICH INC URS EXPENDITURE, DURING ANY PREVIOUS YEAR, WHICH IS OF A RELIGIOUS NATURE FOR A N AMOUNT NOT EXCEEDING FIVE PER CENT OF ITS TOTAL INCOME IN THAT PREVIOUS YEAR SHAL L BE DEEMED TO BE AN INSTITUTION OR FUND TO WHICH THE PROVISIONS OF THIS SECTION APPLY. 8.3 EXPLANATION 3 TO SECTION 80G (5) PROVIDES AS UN DER : 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. 8.4 CONSIDERING THE ABOVE PROVISIONS FOR GRANT OF A PPROVAL U/S. 80G(5), IT IS RELEVANT TO NOTE THAT THE AFORESAID SECTION APPLIES TO DONATIONS TO ANY INSTITUTION OR FUND ONLY IF IT IS ESTABLISHED IN INDIA FOR CHARITA BLE PURPOSE AND FULFILL CERTAIN CONDITIONS MENTIONED ABOVE. ONE OF THE MAIN CONDITI ONS WOULD BE THAT THE ASSESSEE TRUST IS ESTABLISHED FOR CHARITABLE PURPOSE ONLY AN D THE INSTITUTION OR FUND IS NOT EXPRESSED TO BE FOR THE BENEFIT OF ANY PARTICULAR R ELIGIOUS COMMUNITY OR CASTE. THE ITA NO. 370 & 380/AGRA/2013 6 LD. CIT VERY SPECIFICALLY ON PERUSAL OF THE TRUST D EED FOUND THAT THE DOMINANT OBJECTS OF THE ASSESSEE TRUST ARE RELIGIOUS IN NATU RE AND ARE FOR THE BENEFIT OF HINDU COMMUNITY. THE LD. COUNSEL FOR THE ASSESSEE DID NOT CHALLENGE THESE FINDINGS OF FACT RECORDED BY THE LD. CIT IN THE IMPUGNED ORDER. THE LD. COUNSEL FOR THE ASSESSEE ALSO DID NOT ARGUE OR REFER TO ANY EVIDENCE OR MATE RIAL TO SHOW THAT THE ASSESSEE TRUST IS ESTABLISHED FOR CHARITABLE PURPOSE ONLY. W HAT HE HAS PLEADED WAS THAT SINCE THE EXPENDITURE INCURRED BY THE ASSESSEE TRUST ON R ELIGIOUS ACTIVITIES WAS LESS THAN 5% OF THE TOTAL INCOME, THEREFORE, THE ASSESSEE SHO ULD BE GIVEN BENEFIT OF SECTION 80G(5B) OF THE IT ACT. IT IS, THUS, CLEAR THAT THE ASSESSEE DID NOT DISPUTE THAT THE ASSESSEE TRUST EXISTS AND WAS ESTABLISHED HAVING DO MINANT OBJECTS, WHICH ARE RELIGIOUS IN NATURE AND FOR THE BENEFIT OF HINDU CO MMUNITY. THUS, THE ASSESSEE DID NOT EXIST FOR THE CHARITABLE PURPOSE ONLY. THE COND ITIONS OF SECTION 80G(5) ARE, THEREFORE, NOT SATISFIED IN THE PRESENT CASE. THE L D. CIT WAS, THEREFORE, JUSTIFIED IN RELYING UPON THE DECISION OF HONBLE SUPREME COURT IN THE CASE OF UPPER GANGAGE SUGAR MILLS LTD. AND OTHERS (SUPRA), IN WHICH IT WA S HELD SECTION 80G OF THE INCOME-TAX ACT, 1961, SETS OUT THE DEDUCTIONS TO BE MADE, IN ACCORDANCE WITH AND SUBJE CT TO ITS PROVISIONS, IN COMPUTING THE TOTAL INCOME OF AN ASS ESSEE IN RESPECT OF DONATIONS TO CERTAIN FUNDS, CHARITABLE INSTITUTIONS , ETC. IT APPLIES, BY REASON OF SUB-SECTION (5) THEREOF, TO ANY OTHER FUN D OR ANY INSTITUTION TO WHICH THE SECTION APPLIES (SUB-SECTION (2) (A) ( IV) IF IT IS ESTABLISHED IN INDIA FOR A CHARITABLE PURPOSE AND FULFILS THE CONDITION, INTER ALIA, THAT IT IS IS NOT EXPRESSED TO BE FOR THE BE NEFIT OF ANY PARTICULAR RELIGIOUS COMMUNITY OR CASTE. EXPLANATION 3 STATES , IN THIS SECTION, CHARITABLE PURPOSE DOES NOT INCLUDE ANY PURPOSE T HE WHOLE OR SUBSTANTIALLY THE WHOLE OF WHICH IS OF A RELIGIOUS NATURE. ITA NO. 370 & 380/AGRA/2013 7 EXPLANATION3 TAKES NOTE OF THE FACT THAT AN INSTIT UTION OR FUND ESTABLISHED FOR A CHARITABLE PURPOSE MAY HAVE A NUM BER OF OBJECTS. IF ANY ONE OF THESE OBJECTS IS WHOLLY, OR SUBSTANTIALL Y WHOLLY, OF A RELIGIOUS CHARACTER, THE INSTITUTION OR FUND FALLS OUTSIDE THE SCOPE OF SECTION 80G AND A DONATION O IT DOES NOT SECURE THE ADVANTAGE OF THE DEDUCTION THAT IT GIVES. EXPLANATION 3 DOES NOT REQ UIRE THE ASCERTAINMENT OF WHETHER THE WHOLE OR SUBSTANTIALLY THE WHOLE OF THE INSTITUTION OR FUNDS CHARITABLE PURPOSE IS OF A RE LIGIOUS NATURE. IF IT DID, IT WOULD READ DIFFERENTLY. IT REQUIRES THE ASC ERTAINMENT OF WHETHER THERE IS ONE PURPOSE, WITHIN THE INSTITUTION OR FUN DS OVERALL CHARITABLE PURPOSE WHICH IS WHOLLY, OR SUBSTANTIALLY WHOLLY, O F A RELIGIOUS NATURE. HELD ACCORDINGLY, AFFIRMING THE DECISION OF THE HI GH COURT, THAT CLAUSE 2(H) OF THE TRUST DEED IN QUESTION WHICH PER MITTED THE TRUSTEES TO SUPPORT PRAYER HALLS AND PLACES OF WORSHIP SET O UT A PURPOSE, THE WHOLE OR SUBSTANTIALLY THE WHOLE OF WHICH WAS OF A RELIGIOUS NATURE. THEREFORE, THE TRUST AND THE DONATION BY THE ASSESS EE TO IT FELL OUTSIDE THE SCOPE OF SECTION 80G. 8.5 THE LD. COUNSEL FOR THE ASSESSEE MAINLY RELIED UPON THE PROVISIONS CONTAINED IN SECTION 80G(5B) OF THE IT ACT, WHICH, IN OUR OPI NION, ARE ALSO NOT ATTRACTED IN THE CASE OF ASSESSEE. THE SUBSTANTIVE PROVISIONS FO R GRANT OF APPROVAL U/S. 80G(5) OF THE ACT PROVIDES THAT THE ASSESSEE TRUST OR INST ITUTION OR FUND SHOULD BE ESTABLISHED FOR CHARITABLE PURPOSE ONLY. THE EXPLAN ATION 3 ALSO SUPPORTS THIS VIEW THAT CHARITABLE PURPOSE WOULD NOT INCLUDE ANY PURPO SE THE WHOLE OR SUBSTANTIALLY THE WHOLE OF WHICH IS OF A RELIGIOUS NATURE. THERE IS ALSO NO DENIAL BY THE ASSESSEE THAT IT EXISTS WHOLLY AND SUBSTANTIALLY FOR RELIGIO US PURPOSE. SECTION 80G(5B) IS ALSO NOT IN CONTRAVENTION OF PROVISIONS OF SECTION 80G(5) OF THE IT ACT BECAUSE IT CLARIFIES THE POSITION THAT THE ASSESSEE TRUST WHEN INCURRED EXPENDITURE ON RELIGIOUS ACTIVITIES, WHICH IS LESS THAN 5% OF THE TOTAL INCO ME WOULD BE DEEMED TO BE ITA NO. 370 & 380/AGRA/2013 8 INSTITUTION OR FUND, TO WHICH THE PROVISIONS OF THI S SECTION APPLY. THE SMALL PERCENTAGE OF AMOUNT NOT EXCEEDING 5% PROVIDED IN T HIS SECTION CLEARLY PROVE THAT THE ASSESSEE SHALL HAVE TO ESTABLISH ON RECORD THAT IT EXISTED AND ESTABLISHED FOR CHARITABLE PURPOSE ONLY AND WHILE INCURRING THE EXP ENDITURE DURING ANY PREVIOUS YEAR, WHICH IS OF A RELIGIOUS NATURE FOR AN AMOUNT NOT EXCEEDING TO 5% OF ITS TOTAL INCOME FOR THAT PREVIOUS YEAR, SHALL BE DEEMED TO B E AN INSTITUTION OR FUND TO WHICH THE PROVISIONS OF SECTION SHALL APPLY. THE BENEFIT OF SECTION 80G(5B) IS THUS PROVIDED TO LIMITED EXTENT TO THE INSTITUTION OR TR UST OR FUND, ESTABLISHED FOR CHARITABLE PURPOSE ONLY WHEN IT INCURS EXPENDITURE ON RELIGIOUS ACTIVITIES NOT EXCEEDING 5% OF ITS TOTAL INCOME IN THAT PREVIOUS Y EAR. THIS PROVISION DID NOT SAY THAT THE ASSESSEE TRUST OR FUND SHOULD NOT EXIST OR ESTABLISH FOR CHARITABLE PURPOSE. THE ASSESSEE SHALL HAVE TO PROVE REMAINING EXPENSES ARE INCURRED OUT OF TOTAL INCOME, OTHER THAN 5%, ON CHARITABLE ACTIVITIES. BU T THE ASSESSEE FAILED TO DO SO. THOUGH, THE LD. COUNSEL FOR THE ASSESSEE SUBMITTED THAT THE ACCOUNTS WERE PRODUCED BEFORE THE LD. CIT TO SHOW THAT LESS THAN 5% EXPEND ITURE WERE INCURRED OUT OF TOTAL INCOME ON RELIGIOUS ACTIVITIES, BUT NO SUCH POINTS HAVE BEEN RAISED BEFORE THE LD. CIT, WHICH ALSO FINDS SUPPORT FROM THE FACT THAT NO SUCH SPECIFIC GROUND OF APPEAL HAS BEEN RAISED EVEN BEFORE THE TRIBUNAL. THE ASSES SEE NEVER PLEADED THAT IT HAS INCURRED LESS THAN 5% OF TOTAL INCOME IN PREVIOUS O N RELIGIOUS ACTIVITIES. HOWEVER, WE HAVE GONE THROUGH THE INCOME AND EXPENDITURE ACC OUNT FILED IN THE PAPER BOOK. AT PAGE 20 OF THE PAPER BOOK, INCOME AND EXPENDITUR E ACCOUNT FOR THE PERIOD ITA NO. 370 & 380/AGRA/2013 9 23.02.2012 TO 31.03.2012 IS FILED SHOWING RECEIPT O F DONATIONS AT RS.11,957/- AND GAUSEWA EXPENSES ARE INCURRED IN A SUM OF RS.10,450 /-. AT PAGE 25, THE INCOME AND EXPENDITURE ACCOUNT ENDING ON 31.03.2013 IS FIL ED SHOWING THE DONATIONS OF RS.83,077/- AND APART FROM OTHER EXPENSES, THE ASSE SSEE HAS INCURRED EXPENSES OF RS.30,025/- ON GAUSEWA EXPENSES AND RS.27,805/- SPE NT ON ANNAKSHETRA EXPENSES. AT PAGE 27, INCOME AND EXPENDITURE ACCOUNT FROM 01. 04.13 TO 31.10.13 IS FILED TO SHOW DONATIONS OF RS.33,931/- RECEIVED AND APART FR OM OTHER EXPENSES, EXPENSES OF RS.14,600/- ARE SPENT ON ANNAKSHETRA EXPENSES AND R S.13,075/- ARE INCURRED ON ANNADAN EXPENSES. THE AFORESAID DETAILS WOULD CLEAR LY SHOW THAT THE ASSESSEE HAS INCURRED EXPENSES ON ITEMS WHICH ARE ADMITTEDLY REL IGIOUS IN NATURE AND HAVE ALSO EXCEEDED 5% OF THE TOTAL INCOME IN THAT PREVIOUS YE AR. THOUGH THE APPEAL OF THE ASSESSEE IS LIABLE TO BE DISMISSED ONLY ON THE REAS ON THAT IT DID NOT EXIST FOR CHARITABLE PURPOSE, YET THE ABOVE DETAILS WOULD ALS O SHOW THAT THE ASSESSEE IS NOT ENTITLED FOR ANY RELIEF. WE MAY ALSO MENTION HERE T HAT WHATEVER EXCEPTION HAS BEEN PROVIDED IN SECTION 80G(5B) APPLIES TO CLAUSE (II) OF SUB-SECTION (5) AND EXPLANATION 3 TO SECTION 80G, BUT NO EFFECT OR EXCE PTION HAVE BEEN PROVIDED TO EXCLUDE THE OPERATION OF PROVISIONS OF CLAUSE (III) OF SUB-SECTION (5) OF SECTION 80G. CLAUSE (III) OF SUB-SECTION (5) TO SECTION 80G PROV IDES THE CONDITION FOR APPLYING THESE PROVISIONS WHEN THE INSTITUTION OR FUND IS NO T EXPRESSED TO BE FOR THE BENEFIT OF ANY PARTICULAR RELIGIOUS COMMUNITY OR CASTE. IN THE CASE OF THE ASSESSEE, THE LD. CIT ON GOING THROUGH THE DOMINANT OBJECTS OF THE AS SESSEE TRUST SPECIFICALLY HELD ITA NO. 370 & 380/AGRA/2013 10 THAT SAME ARE RELIGIOUS IN NATURE AND FOR THE BENEF IT OF HINDU COMMUNITY. THEREFORE, THE PROVISIONS OF SECTION 80G(5)(III) IS CLEARLY ATTRACTED IN THE CASE OF ASSESSEE FOR DENIAL OF APPROVAL UNDER THE ABOVE PRO VISIONS AND AS SUCH SUB-SECTION (5B) TO SECTION 80G WOULD ALSO NOT SUPPORT THE ARGU MENTS OF THE LD. COUNSEL FOR THE ASSESSEE. THE LD. COUNSEL FOR THE ASSESSEE MAINLY R ELIED UPON THE DECISION OF KARNATAKA HIGH COURT IN THE CASE OF DIT(EXEMPTION) VS. INTERNATIONAL SOCIETY FOR KRISHNA CONSCIOUSNESS (SUPRA), IN WHICH THE ASSESSE E SOCIETY WAS REGISTERED UNDER THE SOCIETIES REGISTRATION ACT FOR RELIGIOUS AND CH ARITABLE PURPOSE. IT WAS REGISTERED U/S. 12AA OF THE IT ACT AS A CHARITABLE TRUST, THE RENEWAL WAS SOUGHT AND IT WAS FOUND THAT THE TOTAL EXPENDITURE TOWARDS REL IGIOUS EXPENSES WERE INCURRED WHICH WERE LESS THAN 5% OF THE TOTAL INCOME. THEREF ORE, THE DEPARTMENTAL APPEAL WAS DISMISSED. IN THE CASE OF ASSESSEE, THE LD. CIT HAS GIVEN SPECIFIC FINDING THAT DOMINANT OBJECTS OF THE ASSESSEE TRUST ARE RELIGIOU S IN NATURE AND FOR THE BENEFIT OF HINDU COMMUNITY. THEREFORE, THE ASSESSEE DID NOT EX IST AND ESTABLISHED FOR CHARITABLE PURPOSES. THE ABOVE DECISION, THEREFORE, IS CLEARLY DISTINGUISHABLE ON FACTS AND WOULD NOT SUPPORT THE CASE OF THE ASSESSE E. 8.6 CONSIDERING THE ABOVE DISCUSSION, IN THE LIGHT OF ABOVE PROVISIONS OF LAW, IT IS CLEAR THAT THE ASSESSEE HAS FAILED TO SATISFY TH E CONDITIONS OF SECTION 80G(5) OF THE IT ACT AS NOTED ABOVE AND AS SUCH IS NOT ENTITLED F OR APPROVAL UNDER THE ABOVE PROVISIONS. IN THE RESULT, THE APPEAL OF THE ASSESS EE IS DISMISSED. ITA NO. 370 & 380/AGRA/2013 11 ITA NO. 380/AGRA/2013 (SHRI DHARM PRACHAR ANASHRIT SEWASHRAM TRUST): 9. THIS APPEAL BY THE ASSESSEE IS DIRECTED AGAINST THE ORDER OF LD. CIT-I, AGRA DATED 26.11.2013 REJECTING THE APPLICATION FOR APPR OVAL U/S. 80G(5) OF THE IT ACT. THE LD. COUNSEL FOR THE ASSESSEE STATED THAT THE FA CTS AND ISSUES ARE IDENTICAL AS HAVE BEEN CONSIDERED IN ITA NO. 370/AGRA/2013 IN THE CAS E OF YUG CHETNA PARMARTH TRUST (SUPRA). CONSIDERING THE FACTS OF THE CASE AN D FOLLOWING THE DECISION IN THE CASE OF YUG CHETNA PARMARTH TRUST (SUPRA)., WE DISM ISS THE APPEAL OF THE ASSESSEE. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS DISMIS SED. 10. IN THE RESULT, BOTH THE APPEALS OF DIFFERENT AS SESSEES ARE DISMISSED. COPY OF ORDER BE PLACED ON BOTH FILES. ORDER PRONOUNCED IN THE OPEN COURT. SD/- SD/- (PRAMOD KUMAR) (BHAVNESH SAINI) ACCOUNTANT MEMBER JUDICIAL MEMBER *AKS/- COPY OF THE ORDER FORWARDED TO : 1. APPELLANT 2. RESPONDENT 3. CIT(A), CONCERNED BY ORDER 4. CIT, CONCERNED 5. DR, ITAT, AGRA 6. GUARD FILE SR. PRIVATE SECRETARY TRUE COPY