TaxTMI 
TaxTMI 
2024 (10) TMI 1814
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....so to sub-section (5) of section 80G. 4. For that the Commissioner of Income Tax (Exemptions) ought not to have rejected the application made u/s.80G(5) for the only reason that the appellant mentioned the nature of activity of the trust as 'Religious cum Charitable' in form 10AB. 5. For that the Commissioner of Income Tax (Exemptions) failed to appreciate the clauses in the trust deed, which clearly points out that the trust is formed for charitable purpose. 6. For that the Commissioner of Income Tax (Exemptions) failed to appreciate that the trust is not established for the benefit of any particular community or caste. 7. For that the Commissioner of Income Tax (Exemptions) failed to appreciate that the appellant had satisfied all the conditions for grant of approval u/s.80G(5). 8. For that the Commissioner of Income Tax(Exemptions) failed to appreciate that merely because one out of so many clauses in the trust deed point out to religious purpose, approval u/s.80G(5) can be rejected. 9. For that the Commissioner of Income Tax (Exemptions)erred in stating that the processing of application and granting of registration ....
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....of the above mentioned reasons. 7. The applicant was requested to furnish its objections in this regard, if any, on or before 23.04.2024. The above notice was duly served on the applicant by e-mode through ITBA/e-filing portal as per law. 8. In response to the same the applicant filed its response on 23.04.2024. The applicant in its reply has explained that while filing form 10AB, in Column 3 the nature of activities was wrongly mentioned as "Religious cum Charitable Trust' and in Column 5 objects of the applicants as "Religious." The applicant has also explained that the objects of the trust apart from the single clause of engaging in construction and maintenance of places of worship also includes lot of nonreligious objects. It also has explained that so far the trust has engaged in providing educational support to needy students. In support of its claim it has cited ITAT Pune ruling in the Santshreshtha Gajajan Maharaj SevabhaviSanstha trust where 80G registration was allowed by the honourable Tribunal when majority of the objects were nonreligious nature. 9 The reply of the assessee has been considered but could not be accepted for the following r....
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....n view of the above, the application in Form No. 10AB filed by the applicant on 03-10-2023 cannot be processed. 10. As explained in para 2 of this order, as per the provisions of section 80G(5), if the application is made under clause (ii) or clause (ii) of the said proviso and the Principal Commissioner or Commissioner has not satisfied, he can reject the application as well as cancel the approval of the trust/institution, In this case, the application is filed by the applicant In clause (ii) of section 80G(5) of the I.T. Act 1961 and also has mentioned the nature of activity of the trust as 'Religious Cum Charitable' and also mentioned in the object column, Religious' as one of the objects. its application is not maintainable for the reasons Stated above in para 9 of this order. Hence, the application filed by the applicant on 03-10-2023 in Form No. 10AB u/s 80G(5) (ii) seeking approval u/s. 80G(5) of the I.T. Act, 1961 is rejected and its provisional approval if any granted earlier also cancelled." 4. Aggrieved by the order of the Ld. CIT(E), Chennai, the Ld.AR stated that, the trust was formed in the A.Y. 2023-24 on 13/04/2023 and has not carried out any....
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....hough the assessee has explained in their reply that while filing Form 10AB, in column 3 the nature of activity was wrongly mentioned as "Religious and Charitable" and in column 5 objects of the applicants as "Religious" and hence relied on the following decisions, wherein mere technicalities should not come in the way of granting a benefit under the Act. - Sonepat Hindu Educational Vs. CIT [2005] 147 Taxman 1 (Punjab & Haryana) - Harbauer (India) Pvt ltd Vs. ADIT - ITAT, Kolkata - ITA No. 512/Kol/2021 dated 08/02/2023. 8. Per contra, the Ld. Sr. DR submitted that the assessee in their Trust deed has included religious activities as one of the objects and also in the clause beneficiaries the same is existing. Accordingly the application made by the assessee is charitable and religious and hence there is no reason to interfere in the orders of the Ld. CIT(E) and prayed for dismissal of the assessee's appeal. 9. We have heard the rival contentions and gone through the facts and orders. It is admitted fact that the assessee trust has been granted provisional registration U/s.12A and also approval U/s. 80G(5) of the Act, during the A.Y. 2024-25, since, the trust....
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....ted 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 sub section (SB) uninfluenced by the impugned order of rejecting the renewal for the assessment years 1995-2000. In other words, the petitioner's application for renewal with effect from 1-4-2000, should be considered keeping in view of subsection (SB) of section BOG. 6. These submissions appear to be justified in the light of the aforesaid provision. 7. Accordingly, the writ petition is disposed of with the direction that the petitioner's applications for renewal of registration with effect from 1-4-2000, under section BOG may be considered by the Commissioner independent of the impugned order dated 25-9-1998, keeping in view the provision of sub-section (SB) of section 80G. 8. No Costs." 11. The identical facts have been dealt in another case Santshrestha Gajanan Maharaj Vs. CIT(E) - ITAT, Pune - ITA No. 2004/2019 dated 06/12/2022 and decided the issue in favour of the assessee and hel....
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....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 temple and in such situation they would even approach the Charity Commissioner, Pune, for necessary amendments in the object clauses of the trust deed. Therefore, as on date, the assessee-trust has only performed activities of a charitable nature and the department is satisfied about the charitable nature of the assessee-trust because of which the Id. CIT (Exemption) has already granted registration u/s 12AA of the Act to the assessee. Even before us, Id. D.R did not raise any objection regarding noncharitable activities of the assessee-trust nor he could bring any evidence on record to demonstrate that the assessee trust is not doing any charitable activity. Regarding the objection raised by the Id. CIT (Exemption) that the assessee intends to utilise a substantial amount of funds received as donations during F.Y. 2015-16, for construction of temple of Gajanan Maharaj and for its maintenance, we have perused the entire o....
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.... 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 Commissioner, Pune, before undertaking such activity. However, in the present context given the facts when the assessee is registered u/s 12AA of the Act and when the provision of section 80G(5)(vi) of the Act has been complied with, we do not see any reason for refusing the assessee the grant of exemption u/s 80G of the Act. The Department has also not brought out a case where they can prove through evidences that the assessee-trust has violated the stipulations contained in sec. 80G(58) of the Act. In fact, the revenue authorities have not demonstrated, anything showing substantial expenditures of the fund received in donation by the assessee for religious purposes and whether it is exceeding the permissible limit of 5%. It has also been mentioned by the Id. CIT (Exemption) that the assessee has not provided head-wise details of various expenditure as per para 4.3 of his order but all these details have been submitt....