The ITAT set aside the Ld. CIT(E)'s refusal to grant approval...

The ITAT set aside the Ld. CIT(E)'s refusal to grant approval under s. 80G(5) and remitted the matter for fresh consideration, holding that the mere presence of an object concerning propagation of Sanathan Dharm or knowledge of deities is not per se substantially religious so as to disentitle the appellant. The Tribunal directed the Ld. CIT(E) to ascertain whether the appellant expended in excess of the statutory 5% limit on religious activities (per s. 80G(5B)); if no excess expenditure is found and other statutory conditions are satisfied, approval under s. 80G(5) must be granted. The appeal is allowed for statistical purposes.