THE BERCHAH CHURCH OF GOD,KANGRA vs. CIT(E), CHANDIGARH

Upon perusal of paras 3.1. & 3.2 of the impugned order, it could be seen that the approval has been denied on the ground that the assessee was engaged in religious activities. The Ld. CIT(E) invoked the provisions of Sec.80G(5)(iii) and Explanation-3 to deny approval to the assessee. The Ld. AR drew attention to its application as placed on Page No.1 to 9 of the paper-book to state that the objects of the assessee trust was relief to the poor, education, medical relief and advancement of any other objects of general public utility. The attention was also drawn to assessee’s financial statements for FYs 2021-22 to 2023-24 to argue that no expenditure was incurred on religious activities and the conclusion of Ld. CIT(E) was misplaced / misconceived. Reference has also been made to assessee’s Memorandum of Association (MOA) of assessee-trust to contend that none of its objects were religious in nature. The copy of activity report of the assessee has been placed on Page Nos.94 to 120 of the paper book. Lastly, Ld. AR contended that the impugned issue was never confronted to the assessee and no effective opportunity was granted to rebut the same. The Ld. CIT-DR fairly stated that the matter could be re-examined by approving authority. 3. Finding substantial force in the arguments of Ld. AR and keeping in mind the fact that no effective opportunity was granted by Ld. CIT(E) to the assessee to rebut the impugned issue, we deem it fit to set aside the impugned order and restore the issue of approval back to the file of Ld. CIT(E) for de novo consideration with a direction to the assessee to plead and prove its case forthwith.

The appeal stand allowed for statistical purposes. Order pronounced on 02nd June, 2026.