2025 (5) TMI 972

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....on filed in Form No.10AB u/s 80G(5)(iii) of the Income-tax Act (for short 'the Act') and cancelled the provisional registrations. Since the facts and the grounds of appeal are similar in both cases, with consent of both parties, these appeals are clubbed and heard together, and disposed of by a common order for the sake of convenience and brevity. ITA No. 1248/SRT/2024 is taken as the 'lead case'. 2. The grounds of appeal raised by the assessee in ITA No. 1248/SRT/2024 are as follows: "1. On the facts and circumstances of the case as well as law on the subject, the ld. Commissioner of Income Tax (Exemption) has erred in rejecting the application filed by the Appellant Trust in form 10AB for grant of approval under clause (iii) o....

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....ication for registration for approval in Form No.10AB was 27.04.2024 and the date of provisional approval was 24.06.2022 for the period from 24.06.2022 to AY.2025-26. Thereafter, the CIT(E) examined the objects of the trust and observed that some objects are religious in nature, which contravene the main condition of section 80G(5) of the Act. The appellant had also not given any clarification in respect of religious objects mentioned in the trust deed. The trust has also not furnished details of actual religious expenditure to enable the CIT(E) to verify the violation of sub-section (5B) of section 80G of the Act. Accordingly, he held that assessee trust is not established only for charitable purposes. Hence, the applicant is not entitled ....

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....ies and perused the materials available on record. The CIT(E) observed that the appellant has not furnished complete details regarding the expenditure incurred for religious purpose. He also observed that the appellant has not clarified about the religious objects mentioned in the trust deed. The ld. AR submitted that the trust was for charitable purpose and no expenditure whatsoever was incurred for any religious purpose. We find that under similar facts, the matter has been restored to the file of CIT(E) in case of Shree Bhandari Gnyati Mandal, in ITA No.1503/Ahd/2021, dated 24.12.2024, for necessary verification and fresh adjudication. For ready reference, relevant part of the order is reproduced below: "5. On going through the ....

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....ous nature. Therefore, even as per Explanation 3 referred to above, in order to qualify as "charitable purpose" within the meaning of section 80G of the Act, the only qualification is that the activities should not be wholly or substantially wholly religious. Therefore, in view of the statutory provisions quoted above, we are of the considered view that the application for grant of deduction under Section 80G cannot be denied to the assessee only on the ground that one of the objects content the term "religious". Further, we observe that the applicant / assessee trust had specifically submitted that the trust has not incurred any expenditure towards religious purposes. However, Ld. CIT(E), without carrying out any enquiry into this aspect, ....