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2022 (5) TMI 687 - AT - Income TaxExemption u/s 11 - application for grant of recognition u/s.80G(5)(vi) rejected - HELD THAT:- The objects talk of upliftment of all the sections of the society coming from any religion, caste or creed. Explanation 3 to section 80G simply states that “charitable purpose” does not include any purpose the whole or substantially the whole of which is of a religious nature. This shows that at least some part of activities of a trust, which are of religious nature, are permitted. This fact is further fortified by sub-section (5B) of section 80G which provides that institution or fund which incurs expenditure during any previous year, which is of a religious nature for an amount not exceeding 5% 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. From the break-up of `Religious expenses’ furnished by the assessee, as incorporated in the impugned order, it is manifest that the religious expenditure is less than the prescribed percentage. The ld. DR could not controvert the narration of expenses given against them as tabulated in the impugned order. In view of the above statutory provisions and the factual panorama obtaining in the extant case, we are satisfied that the assessee deserves recognition u/s.80G(5)(vi) of the Act, which is hereby accorded. Assessee appeal allowed.
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