Successful Appeal for Religious Trust Rejected Under Income Tax Act

The appeal against the rejection of the application under section 80G(5)(vi) of the Income Tax Act by a religious trust engaged in charitable activities was successful. The rejection based on incorrect facts regarding religious expenses exceeding 5% of total receipts was set aside by the Appellate Tribunal ITAT Ahmedabad. The matter was remanded for re-consideration by the Commissioner of Income Tax (Exemption), allowing the trust to provide accurate information for a decision on merit. The appeal was allowed for statistical purposes.

---

---

Issues involved:
The appeal against the rejection of application under section 80G(5)(vi) of the Income Tax Act.

Summary:
The assessee, a religious trust engaged in charitable activities, applied for an 80G certificate which was rejected by the Commissioner of Income Tax (Exemption), Ahmedabad, citing that the trust had made religious expenses exceeding 5% of total receipts. The assessee contended that the rejection was based on incorrect facts, as the religious expenses were only 1.67% of the total income. The appeal was made to the Appellate Tribunal ITAT Ahmedabad, where it was observed that the rejection was based on incorrect presumption of facts regarding the total income. The matter was set aside for re-consideration by the Commissioner of Income Tax (Exemption), Ahmedabad, allowing the assessee to present correct facts for a decision on merit. The appeal of the assessee was allowed for statistical purposes.

---