2025 (6) TMI 1374

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....(5) of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). The assessee has raised following grounds of appeal: "(1) The learned CIT(Exemptions), Ahmedabad's order under third proviso clause (b) sub-clause(B)(1) below Section 80G(5) of the I.T. Act, 1961 is contradictory to law and facts of the case and hence, liable to be quashed or annulled in toto. (2) On the facts and in the circumstances of the case as well in law, the learned CIT(Exemptions), Ahmedabad has erred in rejecting the application for renewal of approval u/s 80G(5) of the Act and also erred in cancelling the provisional approval granted u/s 80G(5) of the Act and hence, the order passed under third proviso Clause (b) sub-clause (B)(1) below Sect....

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....ified and therefore, the order passed under third proviso clause (b) sub-clause (B)(1) below Section 80G(5) of the I.T. Act, 1961 is liable to be struck down. (5) On the facts and in the circumstances of the case as well in law, the learned CIT(Exemptions) ought to have found from the authentic, speaking and genuine documents, statement of accounts, etc., furnished on 30.07.2024 and 26.09.2024 in response to notices issued/served upon the appellant-trust that during the FY 2017-18 and 2018-19, the appellant-trust had not incurred expenditure of a religious nature exceeding 5% of its's total income and therefore, the rejection of the application for the renewal u/s 80G(5) of the Act invoking sub-section (5B) of Section 80G of the Ac....

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.... consideration assessee was allowed registration under section 12AB on 23.09.2021, which is valid upto assessment years 2022-23 to 2026-27. The assessee applied for approval of trust in a prescribed form 10AD vide application dated 06.03.2024, along with application the assessee furnished required details. The Ld.CIT(E) issued show cause notice dated 04.07.2024, copy of show cause notice is placed on record at page No.79 of Paper Book. In the show cause notice, Ld. CIT(E) required expenditure related with the religious purpose incurred for last three financial years i.e. for AY 2021-22, 2022-23 & 2023-24. In reply, assessee furnished all required details assessee also stated that activities of assessee-trust are in consonance with object of....

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....stration upto assessment year 2023-24, therefore appeal may be accepted and to allow approval under section 80G(5) of the Act. 4. On the other hand, Ld. Commissioner of Income-tax Departmental Representative (Ld.CIT-DR) for the Revenue submits that Ld.CIT(E) has passed a very categorical and detailed order and held that the earlier application under section 80G(5) was dismissed on the ground that the assessee has spent more than 5% of its income for religious purpose. The ld. CIT-DR of the revenue submits that he supports the order of ld. CIT(E). 5. We have considered the rival submissions of both the parties and have gone through order of lower authorities carefully. We find that there is no dispute that the assessee is having regist....