AI Drafter 
TaxTMI 
TaxTMI 
2024 (6) TMI 1047
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....sessee has taken the following grounds of appeals:- "1. The order of the Learned Commissioner of Income Tax (Exemptions) is contrary to the provision of law and is bad in law. 2. The order of the Learned Commissioner of Income Tax (Exemptions) 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....
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....raph/row 27 of the said application filed in Form No. 10AB which relates to details of "Religious activities" the applicant/assessee has mentioned that it has incurred expenditure of religious nature and in following years the details of the same given by the applicant/assessee is tabulated as under. F.Y. Total Receipts Religious expenses % of Religious expenses to total receipts 2020 2,44,060 36,800 15.08 7. The provisions of sec 80G(5) stipulates that the said section applies to any donation or any institution or fund referred to in sub-clause (iv) of clause (a) of subsection (2), only if it is established in India for a charitable purpose and if it fulfils other conditions mentioned therein. The provision....
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....80G applies to donations to any institution or fund established in India for a charitable purpose'.' Charitable purpose, for the purposes of the section, does not include any purpose the whole or substantially the whole of which is of a religious nature'. [Emphasis supplied] Explanation 3, which uses this phraseology, takes note of the fact that an institution or fund established for a charitable purpose may have a number of objects. If any one of these objects is wholly, or substantially wholly, of a religious character, the institution or fund falls outside the scope of section 80G and a donation to it does not secure the advantage of the deduction that it gives. 9. The judgment of this Court in Addl CIT v. Surat Art ....
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....tside the scope of section 80G." Moreover, the Hon'ble ITAT, Cochin in the case of Nilackal St. Thomas Church & Ecumenical Centre Trust vs CIT reported in 43 taxmann.com 185, while adjudicating similar issues, where the Ld. CIT had rejected the application of the assessee for approval u/s 80G of the Act, has held as under. "17. From the above details, it is obvious that the assessee has not spent any money for charitable activity. Even otherwise, the assessee has spent more than 5% of the income for religious purpose. Therefore, the observation/note said to be made by the Commissioner who was holding additional charge on 17-10-2012 is contrary to the materials available on record. Hence, the assessee is not entitled fo....
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....d that the assessee / applicant has "inadvertently" mentioned in Form 10AB that expenses exceeding 5% of it's total receipts have been incurred for religious purposes. The assessee submitted that perusal of the income and expenditure account of the assessee for year ended 31.03.2021 would show that the total expenses incurred by the assessee during the impugned year under consideration are Rs. 36,800/- only and as per Ld. CIT(E) the assessee has incurred the entire expenditure during the impugned year under consideration for religious purposes only. However, the Counsel for the assessee submitted that the aforesaid interpretation is incorrect and the assessee has not incurred any expenses which are of a "religious" nature. Further, the Coun....