2025 (6) TMI 231

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.... For the Respondent : Shri Ashesh R Rewar, CIT DR ORDER PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER: This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), (in short "Ld. CIT(E)"), Ahmedabad vide order dated 27.12.2024. 2. The Assessee has taken the following grounds of appeal:- "1. On the facts and in circumstan....

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....tained in sub-section (5B) of Section 80G of the Act. The CIT(Exemptions) noted that this provision allows an institution or fund to incur religious expenditure only up to a limit of five percent of it's total income while carrying out charitable activities. A show cause notice was issued to the applicant after the audit report for the Financial Year 2023-24 showed that the assessee had claimed ex....

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....e setup etc. It was submitted by the assessee that these were not religious in nature and therefore should not disqualify the society from obtaining 80G registration. However, upon examining the reply and the financial records, the CIT(Exemptions) found the explanation to be unsatisfactory. CIT(Exemptions) held that the Bhagwat Katha, centered around the Shreemad Bhagwat scripture, is inherently r....

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....e has incurred expenditure of religious nature in excess of more than 5% of it's income for the relevant assessment year. The Counsel for the assessee submitted that though, admittedly, in the earlier assessment years, the assessee had incurred expenditure of religious nature in excess of 5% of it's total income, but for the impugned assessment year, Ld. CIT(E) has given an incorrect finding of fa....