Case Law Details
Santshreshtha Gajajan Maharaj Sevabhavi Sanstha Vs CIT (ITAT Pune)
ITAT Pune held that if Trust/Institution incurs expenses for religious purposes which is inclusive and is only a small part of the income, and if the substantial work done by the trust is charitable in nature benefitting the public at large then the institution or trust has to be granted exemption u/s 80G of the Act.
Facts-
The assessee had applied for approval u/s 80G(5)(vi) of the Act. The assessee has given details of charitable and social welfare work that it undertakes such as school for poor children, gaushala, old-age home, up liftment of weaker section of the society etc. The assessee has further stated that since its inception the activities of the assessee were carried out by receiving donations for the fulfilment of the objects prescribed in the Memorandum & Articles of Association.
Broadly, the reason for rejection for grant of exemption u/s 80G(5)(vi) of the Act by the ld. CIT (Exemption) was that the assessee received donations of Rs. 13,50,00,000/- from Shri Ganapati Devasthan Trust to be used inter-alia for construction and maintenance of temple of Gajanan Maharaj, but the construction and maintenance of temple is not included in the objects of the assessee trust and therefore, the assessee-trust has not carried out its activities as per its objects.
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