TaxTMI 
TaxTMI 
2026 (8) TMI 1568
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....orm 10A filed under Section 80G(5) of the Act. 2. The facts in brief are that assessee, a Society, filed application in Form 10A for approval u/s 80G(5) (iv) of the Act and provisional registration was granted in Form 10AC a period of 24.09.2021 to AY: 2024-25 vide order dated 24.09.2201 copy of which is available in paper book at page No. 8. Assessee Society was earlier enjoining approval u/s 80G of the Act and the copy of approval is available at page No. 10-11 of the paper book. As assessee applied for renewal of the approval, vide impugned order dated 06.01.2026, Society's claim for approval u/s 80G(5)(ii) of the Actwas dismissed by ld. Prescribed authority by relying the judgment of Hon'ble Supreme Court in Upper Ganges Sugar Mills ....
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....e society at large. 4. The appellant craves leave to amend, alter any of the grounds of appeal." 3. Ld. Counsel for the assessee has submitted that without examining the financials of the assessee ld. Prescribed authority has concluded about religious activities being conducted by the assessee while that is not the case. It was submitted that after decision of Upper Ganges Sugar Mills Ltd. Vs. CIT (supra) there has been amendment in the Act, and our attention was drawn to sub-section (5B) of Section 80G inserted by Finance Act, 1994 w.e.f 01.04.1994 which provides that wherein institutions make expenditure in the relevant year, which is of religious nature for an amount not exceeding 5% of its total income in that previous year ....
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....um of association such a conclusion has been drawn. In this regard, we are of the considered view that memorandum of association containing articles with regard to objects and scope of activities are generally framed keeping in mind the long term perspective of the Society and such institutions try to include and extend their activities to all spheres of charitable activities and also for the reason to avoid seeking amendments in the objectives. 4.1 Thus, without actually indicating as to what activities of religious nature have been taken up by institution, merely on the basis of reference to some objectives, mentioned in the objective documents, which may be religious too, the denial of approval is not justified. More so, when it is th....
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....l activities in every manner. Thus, without doubt primary objectives of the society are charitable in nature and only because it refers to construction or maintenance of Mandir & Gurudwara or other places of pilgrimage does not make its activity religious in nature as there is nothing that while constructing these places of worship or managing these places of worship or places of pilgrimage there is any indication of discrimination of the beneficiaries on the basis of their personal religion. More so when places of worship of different faiths are to be run along with educational institutions an medical facilities, there cannot be justification to allege that assessee before us is engaged in religious activity. 7. We are of the considered....
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.... 80G, to satisfy if the assessee is engaged or not, in religious activity, the Essential Religious Practices (ERP) test, doctrine settled by the Hon'ble Supreme Court of India in 1954 during the Shirur Mutt case AIR 1954 SC 282, to decide which religious rituals and activities receive protection under Articles 25 and 26 of the Constitution, should broadly be the parameters to examine if the said activity is religious, so as to deny the approval of benefit of section 80G of the Act. It is only in case of expenses on ERP are made, then that should be examined to establish that the predominant objective is religious activity. Activities like establishing and running hospital, educational institutions, places of rehabilitation of bovine or othe....