2024 (5) TMI 495

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....istration u/s 80G(5) of the Income Tax Act, 1961 (hereinafter referred as "the Act") 2. The Grounds of Appeal raised by the assessee are as under: 1. The Ld. Commissioner of Income Tax Exemption- Ahmedabad erred in law and on facts in rejecting application seeking approval u/s 80G(5)(vi) of the Act, without appreciating facts and law of the case properly. 2. The appellant craves leave to add, amend, or alter the grounds of appeal at the time of hearing, if need arise. Facts of the case: 3. The assessee is a trust registered under Gujarat Public Trust Act, 1950. The date of registration under the said act is 24.11.2015. The assessee was granted registration under section 12A of the Income Tax Act, 1961 vide Form 10....

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....sessee also submitted audited financial statements for past three assessment years i.e. FY 2019-20, FY 2020-21 and FY 2021-22 and it is clear from the profit and loss accounts of past three years that the assessee has not incurred any expenditure of religious nature. 5.1 The counsel for the assessee also argued that Ld. CIT(E) failed to appreciate that Judgement in case of Upper Gange Sugar Mills was rendered before insertion of provision of Section 80G(5B). He further argued that the said judgement cannot be made applicable to Trust which is predominately charitable in nature. 5.2 The counsel further argued that Ld. CIT(E) failed to appreciate that insertion of section 80G(5B) was made to nullify the effect of judgement of Hon'bl....

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....eproduced as under: 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 five per cent of its total income in that previous year shall be deemed to be an institution or fund to which the provisions of this section apply. 7.3 This non-obstante clause enables such trusts and institutions which are predominantly engaged in charitable activities, to get benefit of section 80(G). Therefore, the conclusion drawn by Ld. CIT(E) in para 8 of his order is not correct. The same is reproduced below- "If any one of these objects is wholly, or substantially wholly, of....