9911796707
TMI Blog2023 (6) TMI 435X X X X Extracts X X X X X X X X Extracts X X X X ..... verify the genuineness of the activities of the assessee, whether they are fulfilling the conditions laid down in clauses (i) to (v) of section 80G(5), notice was issued through ITBA portal requesting the assessee to upload certain information/details regarding the commencement of activity; details of any other law applicable for achievement of objectives and the proof of compliance regarding the said law; year-wise list of donations received and note on activities carried out along with supporting credible evidence etc. In response, the assessee in the note on activities stated that the trust could not conduct activities in the F.Ys. 2019-20 and 2020-21 due to Covid-19 restrictions, but in the next para, it is stated that trust provided fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t exceed 5% of its total income whereas, as per the self-declaration by the assessee regarding the total income vis-à-vis percentage of religious expenses for the F.Y. 2019-20 to 2021-22 i.e. for relevant three years, it is clear that assessee has made religious expenses much more than the prescribed limit of 5% of the total income. Therefore, the application of the assessee for grant of exemption u/s. 80G of the Act was rejected. 3. At the time of hearing, ld.AR of the assessee conceded that expenses shown before the ld. CIT(E) has been done voluntarily by the assessee, but however tried to bring out a case, out of these expenses submitting that the expenses on electricity, which were substantial in nature, if subtracted, then they ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deserving students and medical relief etc. Therefore, it was contended by the ld.DR that in entirety and the primary main object of the trust is only to perform religious activities. Further as is evident in the order of the ld. CIT(E) that such expenses on religious activities as per details voluntarily submitted by the assessee, are in contravention to the limit prescribed u/sec. 80G(5B) of the Act and, therefore, ld. CIT(E) was correct in not providing applicant-trust with exemption certificate u/sec. 80G. 5. We have analyzed the facts and circumstances, heard the submissions of the parties herein and have given considerable thought to the said submissions as well as the relevant documents placed before this Bench. 5.1. It is evident f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which are religious in nature beyond the prescribed limit of 5% of its total income. Even, on perusal of the objects of the trust and the clauses on applicability of surplus income, it cannot be said that the activities of the assessee-trust is for public charity and welfare. We are not in conformity with the ld.AR regarding the stand taken for segregation of electrical expenses from the entire set of the religious expenses since it is not possible to conduct any religious activity programmes without electricity. Therefore, all these expenses are to be considered as one single expense incurred for religious purposes and there is no scope of segregation. 5.2 Another argument taken by the ld.AR was that since the applicant trust has already ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en if a trust incurs expenses of religious in nature, it shall not exceed 5% of its total income for that particular year. Therefore, sec. 80G ultimately brings donations for the trust because the persons making such donations knows that they would get necessary deductions from the Income-tax Department since they are contributing to this trust. It is a facility provided by the Govt. of India to the trust doing charitable activities for the benefit of the society. Therefore, it is all the more necessary for the Commissioner to look into the areas of expenses incurred by such applicant-trust before granting exemption u/sec. 80G of the Act. In the instant case, applicant-assessee trust has clearly violated the provisions of sec. 80G(5B) and t ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
