To derive 80G income tax exemption it is necessary that the donee institution is firstly established in India, only for charitable purpose and secondly such institution or fund is not expressed to be one for the benefit of any particular religious community or caste.
The Amritsar bench of ITAT in (2021) 25ITR(Trib)-OL 593 held that the religious activities of the Sikhs as an INDIVIDUAL or as COMMUNITY are meant to extend benefits to needy human beings irrespective of caste , creed and religion. Their sangat and Pangats are open to all. The bench also pointed out that it is an old age tradition in India more particularly in Hindus/Sikhs to contribute 10 Percent of the earnings for charitable purposes.
In grating exemption to Shiromani Gurudwara Prabhantak Committee the Hon’ble Tribunal held that their dominant activities are charitable given their expenditure statements showing only less than 5 percent expenses on religious activities with the remaining 95% allocated to charitable activities by way of running educational institutions, organising langars, medical camps, hospitals etc.