TaxTMI 
TaxTMI 
2024 (3) TMI 817
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....peals:- "1. The order of the Learned Commissioner of Income Tax (Exemption) is contrary to the provision of law and is bad in law. 2. The order of the Learned Commissioner of Income Tax (Exemption) is erroneous on facts and in law. 3. The Learned Commissioner of Income Tax (Exemptions) is erred in drawing incorrect conclusions from facts. 4. The Learned Commissioner of Income Tax (Exemptions) has erred that activities and objectives of Trust are of religious in nature. In fact, activities and objectives of trust are charitable in nature. 5. In the facts and circumstances of the case and in law the Ld. CIT (Exemption) erred in rejecting the application of registration made by the appellant u/s 80G....
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....i) of the Act stipulates that the institution or fund is not expressed to be for the benefit of any particular religious community or caste. The plain reading of said provisions of the Act makes it evident that the provisions of sec 80G(2)(a)(iv) of the Act is applicable only to such institution or fund which is established in India for Charitable purposes, there is no provision for transfer or application of fund for any purposes other than a charitable purpose. However, the sec 80G(5B) of the Act further prescribes that notwithstanding anything contained in clause (ii) of sub-section (5) and Explanation 3, an institution or fund which incurs expenditure, during any previous year, which is of a religious nature for an amount not exceeding ....
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.... the trust was charitable, another object which by itself may not be charitable but which was merely ancillary or incidental to the primary or dominant purpose would not prevent the trust or the institution from being a valid charity. The judgment is of no assistance in construing Explanation 3 of section 80G. 10. To reiterate, 'Explanation 3 does not require the ascertainment of whether the whole or substantially the whole of the institution or fund's charitable purpose is of a religious nature. If it did, it would read differently. It requires the ascertainment of whether there is one purpose within the institution or fund's overall charitable purpose which is wholly, or substantially wholly, of a religious nature. Th....
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....tage of amount not exceeding 5% provided in this section clearly prove that the assessee shall have to establish on record that it existed and established for charitable purpose only and while incurring the expenditure during any previous year, which is of a religious nature for an amount not exceeding to 5% of its total income for that previous year, shall be deemed to be an Institution or fund to which the provisions of section shall apply. The benefit of section 80G(5B) is thus provided to limited extent to the Institution or trust or fund, established for charitable purpose only when it incurs expenditure on religious activities not exceeding 5% of its total income in that previous year. This provision did not say that the assessee trus....
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....ties is evident from copy of trust deed, which was submitted before Ld. CIT(E). Further, the Counsel for the assessee submitted that in the order passed by Ld. CIT(E) there is no mention as to which specific object of the trust is being considered as "religious" in nature. Further, the Counsel for the assessee submitted that in Form No. 10AB at Point No. 3, the applicant had mentioned that the nature of activities are charitable only. Further, in the said Form No. 10AB at Point Nos. 27a, 27b (at Page 114 of the Paper Book), the applicant trust had specifically mentioned that the trust has not incurred any expenditure of "religious" nature. However, Ld. CIT(E) simply rejected the application filed by the applicant without properly analyzing ....