2025 (6) TMI 639

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....ax Act, 1961 (hereinafter referred to as 'the Act'). 2. The assessee has raised the following grounds in this appeal: - 1. Learned CIT(E) has erred in law and on the facts of the case in passing the impugned order, rejecting the registration u/s. 80G of the Act. 2. Learned CIT(E) has erred in law and on the facts of the case in passing the order u/s. 80G of the Act in gross violation of principle of natural justice. 3. Your Appellant reserves the right to add, alter, modify or delete any ground of appeal." 3. Shri Mohit Balani, the Ld. AR of the assessee submitted that the assessee is a registered public charitable trust and was granted registration under Section 12AB of the Act. The assessee had filed an ap....

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....gious purpose, without issuing any specific show cause notice in this regard and without calling for event-wise bifurcation. He submitted that the assessee was denied opportunity to explain or furnish classification of expenses. He, therefore, requested that the matter may be restored to the file of the Ld. CIT(E) with a direction to issue specific show cause notice regarding classification of event expenses and allow an opportunity to the assessee to explain the nature of these expenses. 4. On the other hand, the Ld. CIT-DR relied upon the order of the Ld. CIT(E) rejecting the application of the Trust and requested to uphold the same. 5. We have considered the rival contentions and carefully gone through the order of the Ld. CIT(E). ....

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....culture. To carry out activities related to promotion of traditional folk arts - musical arts, folk literature, folk art crafts, village art etc. with a focus on Indian culture. Conducting various cultural activities and functions and organizing competitions. Such competitions, programmes etc. are organized by participating artists, cultural organizations etc., to give them necessary support and encouragement. Organizing bhavai, folkdira, folk music, folk dances and folk programs at all levels as part of cultural activities. To encourage such activities. Establishing, running, maintaining music schools. 5.1 In the trust deed, the assessee had altogether 21 objects, out of which, the above two objects were held to be of religious nature b....

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....see were religious in nature, cannot be sustained. We don't find those two grounds to be substantially religious in nature so as to deny the approval. 5.2 At the same time, a finding was also given in the case of Gurukrupa Foundation (supra) that if the assessee had spent more than 5% of its total income on religious purpose as stipulated under Section 80G(5B) of the Act, then the registration of the trust can be denied. The Ld. CIT(E) has given a finding that the expenditure incurred for religious purpose during the Financial Year 2022-23 was 33.52% of the total receipts as against permissible limit of 5%. On the other hand, the assessee has contended that no opportunity was provided to explain the nature of expense for religious purpos....