YUVA GAYATRI PARIWAR TRUST,ANAND vs. THE CIT(EXEMPTION), AHMEDABAD

Being aggrieved by the order dated 23-10-2024 passed by the CIT(E), the applicant/assessee filed present appeal belatedly for 78 days. The applicant filed condonation of delay thereby stating that the assessee has undergone knee surgery during the period and therefore could not respond to the order of the CIT(E) and there was delay in filing the present appeal.

Since the delay appears to be genuine, the delay is condoned.

The ld. A.R. submitted that the trust deed of the applicant does not contain any object of religious nature and is a non- religious welfare oriented organization committed to public service, social upliftment and ethical development. The trust is doing activity for educational objects, social welfare, medical Yuva Gayatri Pariwar Trust, A.Y. NA objects and other charitable objects and is organizing various seminars for self-development and self reliance by providing various opportunities to rural and urban communities. The ld. A.R. submitted that the CIT(E) has rejected the application of the applicant on the ground that trust is a religious trust and accordingly violated the conditions of section 80G(5)(iii) of the Income Tax Act. However, it is not correct as the trust is not established for religious object and it does not carry on any religious activities. The A.R. further submitted that the observation of the ld. CIT(E) that the assessee trust have integrated religious instances over and above 5% of total income in violation of section 80G(5)(iii) of the Act is not just and proper. The ld. A.R. submitted that the object clause 1 in the trust deed refers its activities align with the document “Sapta Sutri Aandolan” for charitable purposes on social upliftment and do not promote any specific religion. Object clause (2) refers that Akhil Vishwa Gayatri Parivar Trust Haridwar guides for ideals and principles to carry out the charitable objects. The ld. A.R. submitted that the assessee trust is meant for education, physical and mental health, environment and other charitable objects and carrying on activities for the said object.

The ld. D.R. submitted that the assessee trust is having 38.53% as religious expenditure being 108 Kundi Yagna and the same is reflected in the audited account as on 31-03-2023 and therefore the CIT(E) has rightly rejected the approval under clause (iii) of 1st proviso of section 80G(5).

We have heard both the parties and perused all the material available on record. It is pertinent to note that as per the requirement of section 80G(5)(iii) of the Income Tax Act only Yuva Gayatri Pariwar Trust, A.Y. NA 5% religious expenditure is allowable but in the present applicant/assessee trust case, the said religious expenditure is Rs. 17,85,466/- as against its total income of Rs. 46,33,403/- which is almost 38.53% and the same is reflected in audited accounts of the applicant trust. The applicant is accepting that the Trust is promoting certain religious activities without giving any supporting evidences to the activities such as education expenditure, health expenditure, as mentioned in the clause of the trust deed. Therefore, the applicant trust failed to establish that it is incurring 5% expenditure only for the religious activities. The applicant trust has also not given any details related to the expenditure incurred on the actual charitable purposes. The plea of the assessee that the object clause 1 is related to seven foundational principles but the assessee/applicant has not given any details as to how the assessee trust is implementing these seven foundational principles and has not given any details about educational or health or environmental institutions which are run by the trust for charitable purposes and which is beneficial to the society at large without any distinction of religion, caste, creed or gender. Section 80G approval/application has to be granted after taking a holistic view and in the present case, the CIT(E) has taken a justified view and rejected the application. Hence, there is no need to interfere with the findings of CIT(E) and the appeal of the assessee/applicant trust is dismissed.

In the result, the appeal of the assessee is dismissed.