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TMI Blog2024 (3) TMI 817X X X X Extracts X X X X X X X X Extracts X X X X ..... thout analyzing the facts of the assessee s case. CIT(E) has not pointed out any specific object in the trust deed which could be termed as religious in nature. CIT(E) has also not analyzed whether any expenditure was incurred by the applicant towards religious purposes. We also observe that the applicant had filed written submissions on two occasions and there has been no non-compliance on part of the applicant trust in response to notices issued by CIT(E). CIT(E) did not confront the applicant trust with regard to it s observation that one of the objects of the assessee trust is religious in nature and simply proceeded to dismiss the application filed by the applicant without provided any opportunity of hearing to the applicant to rebut t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e application of registration made by the appellant u/s 80G(5)(vi) of the Income Tax Act, 1961. 6. Appellant craves liberty to add, alter or delete any ground(s) either before or in the course of the hearing of the appeal. 3. The brief facts of the case are that the assessee filed application for approval of trust under Section 80G of the Act in Form No. 10AB on 16.08.2022. In response to the application filed by the assessee, Ld. CIT(E) issued notice dated 17.11.2022 and another notice dated 23.12.2022, in response to which the assessee filed it s replies. On perusal of the details / documents filed by the assessee, Ld. CIT(E) observed that the assessee has mentioned that one of the objects of the trust is religious in nature. Accordingly, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ature for an amount not exceeding five per cent of its total income in that previous year shall be deemed to be an institution or fund to which the provisions of this section apply. 8. The Hon'ble Supreme Court in the case of Upper Ganges Sugar Mills Ltd vs CIT, reported in 93 Taxman 645, while adjudicating similar issue u/s 80G of the Act has held as under: 8. Section 80G applies to donations to any institution or fund established in India for a charitable purpose . Charitable purpose, for the purposes of the section, does not include any purpose the whole or substantially the whole of which is of a religious nature . [Emphasis supplied] Explanation 3, which uses this phraseology, takes note of the fact that an institution or fund esta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is little doubt that clause 2(h) of the trust deed which permits the trustees 10 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. The above referred provisions of sec 80G of the Act make it amply clear that the applicant/assessee has to be established only for charitable purposes and there is no transfer or application of funds for any purposes, other than a charitable purpose, subject to concession granted to the extent to the extent of 5% of total income as per sec 80G(5B) of the Act. It is not the case, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... st or establish for charitable purpose. 9. As discussed above, the applicant/assessee, itself has accepted that one of its objects is religious in nature. Therefore, the applicant/assessee has violated the above referred provisions of the Income Tax Act and hence the applicant/assessee is not entitled to get approval u/s. 80G(5) of the Income Tax Act therefore the present application filed in Form 10AB is liable to be rejected. 10. Looking to the above facts, the present application filed in Form No. 10AB for the approval u/s. 80G(5) of the IT. Act, 1961, is rejected . 4. The assessee is in appeal before us, against the order passed by Ld. CIT(E) rejecting it s application for grant of registration. The Counsel for the assessee submitted th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 80G(5) of the Act, without even specifying which of the objects of the applicant trust, as per the trust deed submitted before Ld. CIT(E), was religious in nature. Further, the Counsel for the assessee also submitted before us that no expenditure towards religious activities was incurred by the applicant trust during the previous year under consideration. Accordingly, it was submitted that the action of Ld. CIT(E) in rejecting the application of the assessee was wholly misconceived since Ld. CIT(E) summarily rejected the application filed by the assessee without analyzing the facts of the assessee s case. 5. In response, Ld. D.R. relied on the observations made by Ld. CIT(E) in the order passed by him. 6. We have heard the rival contentions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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