2023 (9) TMI 1506

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..... The brief facts of the case is that the assessee is a Trust having registration u/s. 12A of the Income Tax Act vide order dated 21-03- 2023. The Assessee also made application for registration u/s. 80G(5) of the Act by filing Form 10AD on 26-09-2022. 2.1. Ld. CIT(E) issued a notice on 12-12-2022 sent through ITBA on the e-mail address given by the assessee to furnish detailed note on the activities actually carried out by the Trust as well as certain details and documents mentioned therein. In response thereto, the assessee furnished its reply. The Ld. CIT(E) issued one more notice on 12-01-2023 requiring certain details . In response thereto, the assessee filed Affidavit wherein it is declared that the Trust has not incurred religious ex .....

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..... ned in the application." 3. On perusing the above reply, the Ld. CIT(E) held that on perusal of Audit Report for financial year ending 31-03-2022, it is found that the assessee Trust made expenditure towards religious activities of Rs. 7,17,813/- out of the total income of Rs. 49,63,210/-. It is evident that the assessee Trust has incurred expenditure more than 5% of income for religious purpose. Even in the Financial Year 2021, the assessee had spent 24.19% for religious expenses as against the total receipts which is against Section 80G(5)(b) clause (ii) and Explanation 3, wherein an institution which incurs expenditure, during any previous year, which is a religious nature for an amount not exceeding five per cent of its total income in .....

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..... Counsel Mr. Hardik Vora appearing for the assessee submitted a Paper Book which carries various details and the notices issued by Ld. CIT(E), reply filed by the assessee and also registration granted u/s. 12A of the Act dated 21.03.2023 and Affidavit explaining the mistakes in Form 10AB of the Act. Ld. CIT(E) without considering the above Affidavit rejected the application u/s. 80G but whereas granted registration u/s. 12A of the Act. Thus Ld. Counsel pleaded one more opportunity be given to the assessee to explain its case and that the assessee Trust has not expanded for any religious activities. 6. Per contra, the Ld. CIT-DR Shri Akhilendra Pratap Yadav appearing for the Revenue supported the order passed by the Ld. CIT(E). The assessee .....

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