2025 (5) TMI 1877

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....ounds of appeal:- "(1) The learned CIT(E) was not justified in rejecting application u/s. 80G(5) by passing ex-parte order without hearing the appellant. (2) The appellant deserves a chance in view of the natural justice. (3) On the facts and circumstances of the case, the learned CIT(E) was not justified in rejecting the application particularly when the appellant demonstrated that no religious activities were undertaken in the last 3 years as also the objects that meekly pointed to the spiritual and religious side was on the financial assistance to the needy. (4) All of the above grounds are prejudiced to one another. (5) The appellant craves leave to add, alter or vary any of the grounds of ap....

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....(ii) of sub-section (5) of section 80G of the act and hence the applicant is not entitled to get approval u/s. 80G(5) of the Income Tax Act therefore the present application filed in Form 10AB is liable to be rejected. 10. Looking to the above facts, the present application filed in Form No.10AB for approval under clause (iii) of first proviso to section 80G(5) of the Act is rejected and your provisional approval also stands cancelled." 4. Before us, the Counsel for the assessee submitted that assessee is a trust with mixed objects, where majority of the objects are charitable in nature. The trust holds regular registration under Section 12A of the Act. The Counsel for the assessee submitted that out of eleven objects, CIT(E) re....

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....clude any purpose the "whole" or "substantially the whole" of which is of a religious nature. Further, Section 80G(5B) of the Act states that notwithstanding Explanation 3, any institution or fund which incurs expenditure which is of a religious nature for an amount not exceeding 5% of it's total income for that previous year shall be deemed to be an institution or fund to which the provisions of Section 80G shall apply. From a combined reading of these provisions, it is apparent that in case any trust applies or expends less than 5% of it's income towards "religious" purposes, then it cannot be denied benefit of deduction under Section 80G of the Act on the ground that has been incorporated for "religious purposes". Further, even in the de....