2024 (5) TMI 1585

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....n) erred in rejecting the application filed for registration under section 80G(5) of the Act. 3. The facts in brief are that the assessee, a charitable trust, runs an ashram where people can engage in yoga, yagna (havan), and shibirs. The assessee trust was established with various objects such as running charity kitchen, medical camp, assistance to economically weaker people, assistance in imparting education etc. as well as to carry out religious activity& celebration, maintenance of temple etc. The assessee trust was registered under section 12A of the Act w.e.f. 31-05-2021. 4. Subsequently, the assessee trust applied for the approval of trust under section 80G(5) of the Act vide application dated 10-08-2022 before the ld. CIT(Exemptio....

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....ct clause expressly contains religious purposes. Hence, the application of the assessee for approval under section 80G of the Act was rejected by the learned CIT(Exemption). 6. Being aggrieved by the order of the learned CIT(Exemption), the assessee is in appeal before us. 7. The learned AR before us filed a paper book running from pages 1 to 32 and contended that it has not incurred any expense relating to religious activity and therefore the assessee should be allowed the registration as per the amended provisions of section 80G(5B) of the Act. 8. On the other hand, the learned DR submitted that the assessee can be allowed the benefit of the provisions of amended section 80G(5B) of the Act provided that its objects are only charitable ....

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....cause it clarifies the position that the assessee trust when incurred expenditure on religious activities, which is less than 5% of the total income would be deemed to be Institution or fund, to which the provisions of this section apply. The small percentage of amount not exceeding 5 per cent provided in this section clearly proves that the assessee shall have to establish on record that it existed and established for charitable purpose only and while incurring the expenditure during any previous year, which is of a religious nature for an amount not exceeding to 5 per cent of its total income for that previous year, shall be deemed to be an Institution or fund to which the provisions of section shall apply. The benefit of section 80G(5B....