21 u/s. 11 – Charitable purpose – Exemption – A.Y. 2012-13 – Assessee incurring expenditure for upkeep of priests who belonged to particular community – Programmes conducted by assessee open to public at large – Activity of assessee not exclusively meant for one particular religious community – Assessee is entitled to exemption u/s. 11

21.  Charitable  
purpose   –   Exemption  
u/s.  11  – A.Y. 2012-13 – Assessee incurring
expenditure for upkeep of priests who belonged to particular community –
Programmes conducted by assessee open to public at large – Activity of assessee
not exclusively meant for one particular religious community – Assessee is
entitled to exemption u/s. 11

CIT vs.
Indian Society of the Church of Jesus Christ of Latter day Saints.; 397 ITR 762
(Del):

The assessee was registered
u/s. 12A(a) of the Act. The main object of the assessee was to undertake the
dissemination of useful religious knowledge in conformity with the purpose of
the Church of Jesus Christ of Latter-Day Saints, to assist in promulgation of
worship in the Indian Union, to establish places of worship in the Indian Union,
to promote sustain and carry out programmes and activities of the Church, which
were among others, educational, charitable, religious, social and cultural. A
second amendment to the memorandum and articles of association was adopted by
the assessee and it included providing educational opportunities to its young
members who  could  not 
afford  to  finance their education. For the A. Y. 2012-13, the
Assessing Officer held that the assessee was incurring expenditure for upkeep
of the priests who belonged to a particular community and did not pursue any
activity in the true nature of charity for the general public directly itself.
The Assessing Officer noted that the expenses incurred by the assessee included
donations for general public utility. However, on the ground that it
constituted “a very small part of the total expenditure”, the Assessing Officer
held that the assessee was not using its funds for public benefit but rather
for the benefit of specified persons u/s. 13(3) of the Act. He held that section
13(1)(b) of the Act would be attracted and it could not be granted exemption
u/s. 11 of the Act. The Tribunal granted exemption u/s. 11 of the Act.

On appeal by the Revenue
the Delhi High Court upheld the decision of the Tribunal and held as follows:

“The Tribunal found that
the programmes conducted by the society were open to the public at large
without any distinction of cast, creed or religion and the benefits of these
programmes held at the meeting house were available to the general public at large.
Since the activity if the assessee, though both religious and charitable, were
not exclusively meant for one particular religious community, the assessee was
rightly not denied exemption u/s. 11 of the Act.”