TaxTMI 
TaxTMI 
2026 (7) TMI 505
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....g substantial questions of law, arising out of the order dated 22nd January, 2025 passed by the Income Tax Appellate Tribunal, Ahmedabad, 'D' Bench (for short 'the Tribunal') in ITA No. 1551/Ahd/2024: "1. Whether on the facts and in the circumstances of the case and in law, the Hon'ble Tribunal has erred in directing CIT(E) to examine the application of assessee in limited purview of provisions of section 80G(5B) of Income Tax Act, 1961 ignoring the fact that section 80G(5B) of Income Tax Act, 1961 is applicable for trusts which are charitable in nature not on the trusts which are purely religious in nature or religious cum charitable in nature. In this case the objects of trust explicitly determine the objects of trust to be r....
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....n nature and the objects of the Trust were composite in nature i.e. both religious and charitable and hence, they contravene the main conditions of Section 80G(5) of the Act. 4.2. Being aggrieved by the order passed by the CIT(E), the assessee preferred an Appeal before the Tribunal. 4.3. The Tribunal, however, after considering the settled legal position, allowed the Appeal filed by the assessee by arriving at following findings of fact : "8. It would be useful to reproduce the relevant extracts of the Section 80G(5) which states that this section applies to donation to any institution or fund only if it is established in India for a "charitable purposes". Explanation 3 to Section 80G states that the term "charitable purpose....
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....eligious activities. However, Ld. CIT(E), without carrying out any enquiry into this aspect, summarily rejected the application filed by the assessee/applicant trust. In fact, Ld. CIT(E), while rejecting the application for grant of registration under Section 80G of the Act has not dealt with any of the submissions / contentions of the assessee / applicant trust submitted during the course of hearing, which in our view is against the principles of natural justice. 12. Looking into the instant facts, it is observed that Ld. CIT(E) had only cited two of the objects out of various objects of the assessee/applicant trust come to conclusion that the applicant trust could not be granted registration since two of its objects were of a rel....
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....5% of it's total income towards religious activities or not. Mr. Aman Mir, learned Standing Counsel has been unable to dispute that the Commissioner of Income Tax (Exemption) has not given any reason or made any analysis which suggested that the respondent assessee Trust had incurred more than 5% of its total income towards religious activities. For Perusal, Section 80G(5-B) is reproduced hereinbelow: "(5-B) Notwithstanding anything contained in clause (ii) of sub-section (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 wh....