I have a muslim sounding name. But I was born to a christian family and I consider myself an atheist. I have been trying to get fellowship in Canada. Will mentioning my religion in the CV help?
Mentioning religion on your CV is not standard practice. I can't see how it can be beneficial to you're employer unless there are specific requirements for your desired position which relates to religious beliefs. Unfortunately, in some cases, mentioning your religion can hurt your chances as these issues are sensitive and can get very personal for some potential employers. (from what I understand this is a rare occurrence especially in academia)
With that said, If the topic comes up in an interview, I would suggest giving an honest answer.
I'd advise against including your religion on your CV. Unless religion is directly relevant to the job, it's illegal for an employer to take your religion into account, anyway.
And, look at it this way. Suppose you were offered a job at some institution where telling them that you're not a Muslim meant you got a job that a Muslim with your qualifications wouldn't have got. Would you be happy in that environment? Most of the people you meet there won't have read your CV.