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TMI Blog2025 (5) TMI 972X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Income-tax Act (for short 'the Act') and cancelled the provisional registrations. Since the facts and the grounds of appeal are similar in both cases, with consent of both parties, these appeals are clubbed and heard together, and disposed of by a common order for the sake of convenience and brevity. ITA No. 1248/SRT/2024 is taken as the 'lead case'. 2. The grounds of appeal raised by the assessee in ITA No. 1248/SRT/2024 are as follows: "1. On the facts and circumstances of the case as well as law on the subject, the ld. Commissioner of Income Tax (Exemption) has erred in rejecting the application filed by the Appellant Trust in form 10AB for grant of approval under clause (iii) of first proviso to section 80G(5) of the I.T. Act. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sional approval was 24.06.2022 for the period from 24.06.2022 to AY.2025-26. Thereafter, the CIT(E) examined the objects of the trust and observed that some objects are religious in nature, which contravene the main condition of section 80G(5) of the Act. The appellant had also not given any clarification in respect of religious objects mentioned in the trust deed. The trust has also not furnished details of actual religious expenditure to enable the CIT(E) to verify the violation of sub-section (5B) of section 80G of the Act. Accordingly, he held that assessee trust is not established only for charitable purposes. Hence, the applicant is not entitled to get approval u/s 80G(5) of the Act. Therefore, application in Form No.10AB for approval ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t furnished complete details regarding the expenditure incurred for religious purpose. He also observed that the appellant has not clarified about the religious objects mentioned in the trust deed. The ld. AR submitted that the trust was for charitable purpose and no expenditure whatsoever was incurred for any religious purpose. We find that under similar facts, the matter has been restored to the file of CIT(E) in case of Shree Bhandari Gnyati Mandal, in ITA No.1503/Ahd/2021, dated 24.12.2024, for necessary verification and fresh adjudication. For ready reference, relevant part of the order is reproduced below: "5. On going through the records of the case, we observe that the word "religious" is only coming at one place in the objects of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the meaning of section 80G of the Act, the only qualification is that the activities should not be wholly or substantially wholly religious. Therefore, in view of the statutory provisions quoted above, we are of the considered view that the application for grant of deduction under Section 80G cannot be denied to the assessee only on the ground that one of the objects content the term "religious". Further, we observe that the applicant / assessee trust had specifically submitted that the trust has not incurred any expenditure towards religious purposes. However, Ld. CIT(E), without carrying out any enquiry into this aspect, summarily rejected the application filed by the assessee / applicant trust. In fact, Ld. CIT(E), while rejecting the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The appellant is directed to furnish all details needed by the CIT(E) during the fresh proceedings. For statistical purposes, the appeal of the assessee is allowed. 9. In the result, appeal filed by the assessee is allowed for statistical purposes. ITA No.1276/SRT/2024: 10. The facts of the case are similar to the facts of the case decided above. The grounds raised by the appellant are also similar. Hence, following the reasons given in the aforesaid order, the order of CIT(E) is also set aside and the matter is restored to CIT(E) for fresh adjudication in terms of the direction given above. For the statistical purpose, the appeal is allowed. 11. In the result, the appeal of the assessee is allowed for statistical purposes. Order is p ..... X X X X Extracts X X X X X X X X Extracts X X X X
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