Section 80G verification and religious expenditure threshold held to raise no substantial question of law

The Tribunal's remand for fresh verification under Section 80G was upheld because the CIT(E) had rejected the trust's application without examining whether religious expenditure crossed the five per cent limit under Section 80G(5B). The HC treated this as a factual finding supported by the record and held that the Tribunal only directed reconsideration in accordance with law. No substantial question of law arose, and the Revenue's challenge failed.

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Issues: Whether any substantial question of law arose from the Tribunal's order restoring the matter to the CIT(E) for fresh verification under Section 80G, and whether the Revenue could succeed in challenging the Tribunal's conclusion that the CIT(E) had not examined whether the trust's religious expenditure exceeded the statutory limit.

Analysis: The Tribunal had recorded that the CIT(E) rejected the application without making the necessary enquiry into the trust's expenditure on religious activities and without ascertaining whether such expenditure exceeded the five per cent threshold contemplated by Section 80G(5B). The High Court noted that this was a finding of fact, supported by the record, and that the Tribunal had only remitted the matter for fresh consideration and verification in accordance with law. In these circumstances, no legal infirmity or debatable issue of law arose from the Tribunal's order.

Conclusion: No substantial question of law arose, and the Revenue's challenge failed.

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