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TMI Blog2025 (5) TMI 343X X X X Extracts X X X X X X X X Extracts X X X X ..... under: "1. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income Tax has erred in rejecting the application of assessee for approval u/s 80G(5) of the I.T. Act, 1961. 2. It is therefore prayed that order of CIT, passed u/s 80G(5) of the I.T. Act, 1961 may please be cancelled and approval may be granted or matter may be set aside to the file of CIT with appropriate direction. 3. Appellant craves leave to add, alter or delete any ground(s) either before or in the course of hearing of the appeal." 3. Brief facts of the case are that the assessee filed application in Form No.10AB under sub-clause (B) of clause (iii) of first proviso to sub-section (5) of section 80G of the Act. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction 80G(5) of the Act. The assessee-trust had also incurred religious expenditure, which was 7.95% of total income, towards Ram Navami festival celebration. The CIT(E) relied on the decision in cases of Yug Chetna Parmarth Trust, 44 taxmann.com 446 (ITAT - Agra) and OM Tapovan Charitable Trust vs. CIT(E), ITA No.175/Ahd/2023. The CIT(E) observed that assessee-trust had failed to prove that the trust is established for charitable purpose and satisfied the conditions of sub-section (5B) of section 80G of the Act. The applicant had incurred 'religious expenditure' over and above prescribed limit of 5%. The CIT(E) rejected the application filed in Form 10AB for approval under sub-section (B) of clause (iii) of first proviso to section 80G(5) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed that the objects of Gaushala are not in the objects of the trust as mentioned in the MoA of the trust. He submitted that the assessee has violated main provision of sub-section (5) of section 80G as well as sub-section (5B) of the Act. He relied on the decision in the case of Kalaram Sansthan vs. CIT(E), 152 taxmann.com 464 (Pune - Trib.). 6. We have heard both the parties and perused the materials available on record. We have also deliberated on the decisions relied upon by both sides. The CIT(E) has elaborately discussed the legal back ground as well as facts of the case to deny approval u/s 80G(5) of the Act. In order to qualify for approval u/s 80G(5) of the Act, the trust should be established in India for a charitable purpose. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ganize international level knowledge camps for the citizens of the country and abroad. Organizing Ras Garba. To organize a community hall useful to the society." From the above, it is clear that the objects emphasized above are clearly religious in nature. The same has not also been disputed by the appellant which is clear from its submission to the CIT(E) vide its reply dated 24.06.2024 (Page 23 and 24 of the paper book). At page 23 of the paper book, the appellant itself submitted that there were religious expenses of Rs. 40,500/- towards Ram Navami festival celebration. The expenses towards other charitable activities were Rs. 4,66,039/-. The appellant again in page 24 had submitted that Rs. 40,500/- out of total income of Rs. 5,09,226/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ble purpose is of a religious nature. If it did, it would read differently. It requires the ascertainment of whether there is one purpose within the institution or fund's overall charitable purpose which is wholly, or substantially wholly, of a religious nature. There is little doubt that clause 2(h)of the trust deed which permits the trustees to support prayer halls and places of worship sets out a purpose the whole or substantially the whole of which is of a religious nature, and this has not been seriously disputed. Therefore, in our view, the Trust and the donation by the assessee to it fall outside the scope of section 80G." It is clear from the order of the Hon'ble Supreme Court that if one purpose within the institution's overal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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