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2023 (4) TMI 853 - AT - Income TaxDeduction u/s 80G - trust had made expenses more than 5% of its total receipts, which are of religious nature and therefore the application of the assessee was liable to be rejected - assessee applied for 12AA certificate which was granted to the assessee - HELD THAT - CIT(Exemption), Ahmedabad has rejected the claim of the assessee on an incorrect presumption of fact that during the year under consideration, the religious expenses incurred by the assessee was more than 5% of the total income, and therefore the application of the assessee is liable to be rejected in terms of section 80G(5B) - assessee has submitted that during the year under consideration, the religious expenses/poojari expenses were only to the tune of 1.67% of the total income and CIT(Exemption), Ahmedabad has taken an incorrect figure of total income for working out the percentage of religious/Poojari expenses. Therefore, since apparently CIT(Exemption) Ahmedabad dismissed the application of the assessee on an incorrect presumption of facts as to the figure of total income of assessee trust, the matter is being set aside to the file of CIT(Exemption), Ahmedabad for de novo consideration of the application of the assessee, after giving due opportunity of hearing to the assessee to present the correct facts and decide the case on merits. Appeal of the assessee is allowed for statistical purposes.
Issues involved:
The appeal against the rejection of application under section 80G(5)(vi) of the Income Tax Act. Summary: The assessee, a religious trust engaged in charitable activities, applied for an 80G certificate which was rejected by the Commissioner of Income Tax (Exemption), Ahmedabad, citing that the trust had made religious expenses exceeding 5% of total receipts. The assessee contended that the rejection was based on incorrect facts, as the religious expenses were only 1.67% of the total income. The appeal was made to the Appellate Tribunal ITAT Ahmedabad, where it was observed that the rejection was based on incorrect presumption of facts regarding the total income. The matter was set aside for re-consideration by the Commissioner of Income Tax (Exemption), Ahmedabad, allowing the assessee to present correct facts for a decision on merit. The appeal of the assessee was allowed for statistical purposes.
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