TaxTMI 
TaxTMI 
2026 (6) TMI 1159
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....f the Act as a religious-cum-charitable institution for the period relevant to Assessment Years (A.Y.) 2027-28 to 2031-32. It is also the claim of the assessee that approval u/s. 80G of the Act had earlier been granted for A.Ys. 2022-23 to 2026-27 and that there is no change in its objects, activities or pattern of expenditure. 3. The case of the ld. CIT(E) is that the assessee contains religious objects and, therefore, is not eligible for approval u/s. 80G of the Act. The ld.CIT(E) further referred to certain material gathered from Google search / public domain sources to conclude that the assessee is engaged in religious activities and hence falls outside the scope of section 80G of the Act. 4. Aggrieved by the order of the ld.CIT(E), the assessee is in appeal before us. 5. The ld.AR submitted that the dominant objects of the assessee are educational and charitable. Our attention was invited to clause 15(C) of the Memorandum of Association, which, inter alia, refers to establishing and maintaining educational institutions, promoting cultural, social and economic upliftment, and supporting orphans and destitute children. The ld.AR contended that the Act recognizes institu....
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....ous expenditure does not ipso facto lead to denial of approval. 10. In the present case, the dominant objects of the assessee, as borne out from the Memorandum, are establishment and maintenance of educational institutions, social and economic upliftment, and welfare of orphans and destitute children. Nothing has been brought on record to show that the benefits of the assessee are confined or restricted to any particular religious community or caste. On the contrary, the long-standing history of the assessee, prior registration u/s. 12A / 12AB of the Act, earlier approval u/s. 80G of the Act, and the absence of any change in objects or activities, support the case of the assessee that it is predominantly a charitable institution. The exercise undertaken by the ld. CIT(E) in placing reliance upon unverified Google search material, without confronting the assessee with the specific material proposed to be used against it, cannot be approved and is in clear breach of natural justice. 11. We also find force in the submission of the assessee that the alleged religious expenditure, even as per the chart furnished, is only 2.375%, 1.703% and 2.133% of the total income for the A.Ys.2....
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....sel for the petitioner which, inter alia, provided an overriding provision that where an institution or fund which incurs expenditure in the relevant year which is of religious nature for an amount not exceeding 5 per cent of its total income in that previous year then for that previous year, the institution or fund shall be deemed exempted under section 80G by deeming it to be so. 4. On this premise learned counsel for the petitioner further urges that in view of this provision, every year the Commissioner has to consider the ratio between the total income of the trust and the expenditure actually incurred for religious purposes and only if the substantive part of the income, that is to say more than 5 per cent of total income is incurred for religious purposes the registration of trust/fund under section 80G can be refused on that ground. 5. With this premise, it is further submitted by the learned counsel for the petitioner that the petitioner shall be satisfied if the writ petition is disposed of with the direction to the Commissioner to consider the case of the petitioner-trust for renewal of its registration with effect from the insertion of subsection (5B) ....
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....f his order that one of the main objects of the donations received by the assessee-trust from Shri Ganapati Devasthan Trust during F.Y. 2015-16 is to construct Gajanan Maharaj Temple. In this regard, the assessee has also submitted to the Id. CIT (Exemption) the details of proposed accumulation or setting apart of amounts regarding construction of temple, gaushala, old age home, school for poor children and upkeep and maintenance of temple, etc. Thereafter at para 4.3 of his order, the Id. CIT (Exemption) holds that as per the funds received as donation during F.Y. 2015-16 from the said Ganapati Devasthan Trust a substantial amount of fund the assessee intends to use for the purpose of construction of temple of Gajanan Maharaj and also intends to administrate and maintain the said temple which is the work of a pure religious activity. The Id. CIT (Exemption) opined that the object of the assessee- trust does not have any object regarding the construction and maintenance of the temple. In this regard, we would refer to the submissions made by the Id. Counsel for the assessee that as on date, the assessee has not constructed any temple. The assessee only intends to construct the temp....
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....had also referred to the provision of section 80G(5)(ii) along with Explanation 3 and in this regard it is worthwhile to refer to the provisions of section 80G (58) which is as follows: "Notwithstanding anything contained in clause (ii) of subsection (5) and Explanation 3, an institution or fund which incurs expenditure, during any previous year, which is of a religious nature for an amount not exceeding five per cent of its total income in that previous year shall be deemed to be an institution or fund to which the provisions of this section apply." 6. So therefore, it is a non-obstante clause taking care of section 80G(5)(ii) and the Explanation 3 and stating that the expenditure for a religious nature if it does not exceed five per cent of the total income then the said trust or institution shall be deemed to be an institution to which the provision of section 80G would apply. In this context, the assessee has given an undertaking that whenever the construction of temple would take place and the maintenance fund for the said temple it shall be in accordance with section 80G (58) of the Act. That, the assessee would even take necessary approval from the Charity ....