9911796707
TMI Blog2021 (6) TMI 809X X X X Extracts X X X X X X X X Extracts X X X X ..... for registration of trust was declined. 2. The ground of appeal raised by assessee read hereunder: "1.0 The learned Commissioner of Income-tax (Exemptions) erred in law and on facts in rejecting the application in Form No. 1OG for approval u/s. 80G(5) of the Income Tax Act, 1961. 2.0 The learned Commissioner of Income-tax (Exemptions) erred in law and on facts in concluding that the appellant trust had incurred more than 5% of its total income in respect of religious purposes from the F.Yr. 2014-15 to 2017-18 and therefore trust is not eligible for approval u/s. 80G(5) of the Income Tax Act, 1961. 3.0 The ld. Commissioner of Income-tax (Exemptions) erred in law and on facts in arriving at the conclusion that in absence of complete F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... G(5) of the Act. Consequently, the CIT(E) denied the approval under s. 80G(5) of the Act sought by the applicant trust. 4. Aggrieved, the assessee trust preferred appeal before the Tribunal. 5. When the matter was called for hearing, the learned counsel for the assessee, Mr. Bhati, submitted that the whole action of the CIT(E) is perfunctory and without due application of mind. Inviting our attention to the impugned order of rejection in challenge, the learned counsel referred para No. 3 of its order whereby an averment was made that the main object to the trust is religious in nature claimed to be stated by the assessee. The learned counsel thereafter adverted to a corrigendum to order under s. 80G(5) of the Act dated 10.09.2018 wherein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t fall within the ambit of religious activities. The learned counsel thus submitted that when the proposition laid down in the decision of the co-ordinate bench is applied to the facts of the case, the expenses incurred for religious activities would be less than 5% of income and consequently the request for approval under s. 80G of the Act cannot be denied in the facts of the case. The learned counsel finally submitted that registration under s. 12AA of the Act granted by the CIT(E) has not been disturbed and is continuing to be effective till date. Thus, the whole purpose of registration would be rendered infructuous sans the approval under s. 80G of the Act. The learned counsel accordingly urged for a direction to the CIT(E) to revisit t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inference drawn against the assessee trust would not be sustainable in law. 8. Thus, in totality, it is considered expedient with the order of the CIT(E) dated 19.06.2018 is set aside and the entire matter is restored back to the file of the CIT(E)/Competent Authority for de novo consideration in the light of facts available on record as well as fresh facts that may come to the light or pointed out to him by the assessee trust. Needless to say, it shall be open to the assessee trust to place all arguments and evidences in corroboration, as may be deemed necessary, in support of its application for approval 80G of the Act pending before the Competent Authority. Pertinent here to observe that the fair opportunity shall be granted to the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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