2025 (7) TMI 1427

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....t (in short, 'the Act'). 2. The grounds of appeal raised by assessee are as under: "1. The Ld CIT(E) was not just and proper on the facts of the case and in law in rejecting the application of the Trust for approval u/s 80G(5). 2. PRAYER 2.1 The rejection order may be recalled and registration u/s 80G(5) may be directed to be allowed to the appellant. 2.2 Personal hearing may be granted. 2.3 Any other relief that your honours may deem fit may be granted. 3. The appellant craves leave to add, amend, alter or delete any or all of the above grounds of appeals." 3. The brief facts of the case are that the assessee-trust filed an application for approval under clause (iii) of first prov....

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.... than a charitable purpose, subject to concession granted u/s 80G(5) of the Act. The CIT(E) relied on the decisions of various Tribunals in cases of (i) Yug Chetna Parmarth Trust, 44 taxmann.com 446 (Agra - Trib.) and (ii) OM Tapovan Charitable Trust vs. CIT(E), ITA No.175/Ahd/2023 (Ahd - Trib.). He discussed the provisions of section 2(15), 80G(5) and 80G(5B) and 80G(5)(ii) of the Act and referred the decision of Hon'ble Supreme Court in case of Director of Secondary Education vs. Pushpendra Kumar, AIR 1998 SC 2230. It was observed that the appellant had violated existing main condition of sub-section (5) of section 80G, being a religious-cum-charitable trust and violated the conditions of section 80G(5)(ii) of the Act. Hence, the appellan....

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....." 6.1 The CIT(E) seems to have ignored the struck off portion of the clause and has wrongly held that it was for religious purpose but not for charitable purpose. However, it has clear from the trust deed submitted by the assessee-trust and its English translation that the said portion of the clause 4(13) have been struck off by the Charity Commissioner. The effective portion of point No. 4(13) is reproduced below for ready reference and clarity: "..........Celebrating national and religious festivals. To do all kinds of activities for the social moral and spiritual upliftment of the human race." 6.2 Therefore, it cannot be said that the appellant is a religious trust and was not engaged for charitable purposes. The ld. AR h....