2025 (7) TMI 1925

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...."). 2. The assessee has taken the following grounds in this appeal: 1.1 The order passed by U/s.80G(5) on 18.12.2024 by CIT(Exem), Ahmedabad rejecting the application for approval of the appellant trust u/s 80G(5)(11) of the Act and cancelling the provisional approval by holding that the appellant trust was a composite trust i.e. both religious and charitable which is excluded from the benefits of sec.80G(5) is wholly illegal, unlawful and against the principles of natural justice. 2.1 The Id. CIT(Exem), has grievously erred in law and or on facts in not appreciating that the appellant trust was a charitable trust and not a composite trust inclusive of religious objects also. The Id. CIT(Exem) has erred in not consideri....

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....ity was mentioned therein. The Ld. AR submitted that no religious expenses were incurred at all by the assessee in any of the years. Therefore, the rejection of the application by the Ld. CIT(A) was not correct. 4. Per Contra Shri Alpesh Parmar, Ld. CIT. DR supported the order of the Ld. CIT(E). 5. We have carefully considered the submissions of the assessee and also gone through the documents brought on record in the paper book. The assessee is primarily engaged in setting up schools, colleges, lecture halls, hospitals, dispensaries, maternity homes and other institutions for advancement of education and also providing medical relief along with also setting up/running temples. As per the copy of the trust deed brought on record, the ....

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....ct of the trust wholly or substantially wholly as religious in nature. Therefore, the action of the Ld. CIT(E) in rejecting the application of the assessee on this basis cannot be held as correct. 7. The provision of Section 80G(5)(ii) of the Act, on which reliance has been placed by the Ld. CIT(E) to deny the approval reads as under: (5) This section applies to donations to any institution or fund referred to in subclause (iv) of clause (a) of sub-section (2), only if it is established in India for a charitable purpose and if it fulfils the following conditions, namely :-  ..... (ii) the instrument under which the institution or fund is constituted does not, or the rules governing the institution or fund ....