TaxTMI 
TaxTMI 
2025 (7) TMI 1499
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....raised by the assessee are as follows: "1. That, the learned CIT(Exemption) has wrongly rejected the application filed in Form no. 10AB for granting approval u/s 80G(5) of the I.T Act, 1961. 2. That, the findings of the learned CIT(Exemption) are not justified in law as well as facts of the case and required to be deleted. 3. The assessee craves to add, alter, amend or delete any of the above grounds of appeal." 3. Brief facts qua the issue are that the assessee -trust has filed the application in Form 10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the Act before the Ld. CIT(E). However, the Ld. CIT(E), after having received the application of the assessee for approval u/s. 80G(5)(iii) of the Act, has gone through the relevant provisions of Section 80G(5) of the Act, and found that assessee has not fulfilled the conditions mentioned in section 80G(5)(iii) of the Act. Therefore, Ld. CIT(E) issued a show-cause notice to the assessee to explain with documentary evidences, whether the assessee has satisfied the conditions of section 80G(5) of the Act or not. 4. In response to the notice of the Ld. CIT(E), the assessee submitted required details an....
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....t has stated in its reply that it has religious objectives and has also incurred expenditure of religious nature. The English version of the object is reproduced as under for ready reference: "Carrying out various religious activities for organising Katha, Saptah, religious festivals and other similar functions and activities, constructing and maintaining various religious places, as well as maintaining ongoing religious places, renovating religious places, assisting in such activities, spreading the religious spirit among the people to perform similar tasks of that meaning. To perform activities and works related to the service and devotion of God. To arrange Batuk Bhojan. Activities of spiritual development centers, meditation centers, prayer centers, Sanskrit schools, Gnanmandirs, Swadhyayacenters etc. are carried out in order to spread religious spirit among the people. To publish publications relating to general knowledge as well as all religious knowledge. To provide reading comprehension to the people through various enlightening books, literature... 7. Therefore, ld.CIT(E) noted that there is clear violation of section 80G(5) referred to in Para 5 above, which put a ba....
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.... of charitable nature and even not a single object can be religious in nature as unambiguously and explicitly provided for under Explanation 3 to Section 80G of the Act. (iv) It is incorrect to interpret that Sub-section (5B) of Section 80G of the Act overrides provisions of Section 80G(5) of the Act. Provisions of Sub-section (5B) of Section 80G of the Act only clarifies and qualifies the conditionality provided for by clause(ii) of section 80G(5) of the Act and has to do nothing with the object of institutions/funds desirous of approval or approved u/s. 80G(5) of the Act. Such institutions/funds are mandatorily required by section 80G(5) and Explanation 3 to Section 80G of the Act to have only charitable objects. This position has been explained by Hon'ble Supreme Court of India in the case of Director of Secondary Education v. Pushpendra Kumar AIR 1998 SC 2230 wherein the Supreme Court held that a provision in the nature of an exception cannot be so interpreted as to sub-serve the main enactment and thereby nullify, the right conferred by the main enactment. In view of the above, the ld. CIT(E) noted that the applicant has violated existing main condition of sub-section(5)....
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....us objects to institutions/funds desirous of approval or approved u/s. 80G(5) of the Act. Therefore such institution is mandatorily required by section 80G and explanation (iii) of section 80G(5) of the Act to have only charitable objects. Therefore, objects of the trust themselves cannot be wholly and substantially religious in nature. The objects of the trust should be wholly or substantially charitable in nature. Therefor Ld. CIT-DR submitted that assessee's application for approval u/s. 80G(5)(iii) of the Act should be rejected at this stage and it should not be remitted back to the file of ld. CIT(E) for fresh consideration. 11. We have heard both the parties and perused the material on record. We have deliberated the case laws relied upon by both the parties. We note that Ld. Counsel for the assessee submitted before us the expenditure incurred by the trust on charitable activities and religious activities. The expenses incurred by the assessee-trust on religious activities were submitted by the assessee before the Ld. CIT(E) also, which is reproduced by the Ld. CIT(E) on Page 10 of his order. We note that the assessee-trust has been duly registered with Bombay Public Trust ....
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....ection works. (xi) To provide food and water and other protection to animals. (xii) To perform all activities of life and to assist in such activities. (xiii) To establish and run Kindergartens, schools, collages, hostels for student brothers and sisters in the field of education also providing scholarships to the needy and supportive and running trusts with such objectives. To do social service works in non-political field. To assist the trusts with the above objectives and to support the trusts. 12. We find that the main activities of the trust are to run Annakshetra and provide food at very nominal cost, to run and maintain Atithigruh, Gaushala and provide medical relief to the needy. Additionally, the assessee-trust also arranges Mass Marriage functions for needy families. The details of the income and the object related expense incurred by the assessee-trust for the preceding three years are as under: Sr. No. Financial Year Total income Expenditure of religious nature Percentage to total income (%) 1 2021-22 1,11,82,777 2,06,613 1.84 2 2022-23 3,05,78,977 13,07,606 4.27 3 2023-24 3,38,72,115 3,26,335 0.96 Therefore, from the above, it is clearly evi....