KALAVATIBEN BHOGILAL SHAH CHARITABLE TRUST,BANASKANTHA vs. THE CIT(EXEMPTION), AHMEDABAD

आदेश/ORDER

Per Suchitra Kamble, Judicial Member:

are as under:- “1. The Learned Commissioner of Income Tax (Exemptions), Ahmedabad, erred in law and on facts by rejecting the appellant's application under Section 80G(5) of the Income Tax Act, 1961, without appropriately appreciating the charitable nature of the trust's objects.

2. The rejection of the application based on the alleged religious nature of one object, despite the predominantly charitable and public benefit-oriented nature of the trust's activities, is arbitrary, unjust, and contrary to the provisions of Section 80G of the Act.

3. The Learned CIT(Exemptions) failed to consider that the promotion and maintenance of places such as Dharmshalas, community halls, hospitals, and educational campuses in Kalavatiben Bhogilal Shah Charitable Trust, A.Y. N.A. abandoned or religious areas also serve a charitable purpose benefiting the public at large, irrespective of religion.

4. The Learned CIT(Exemptions) misinterpreted the provisions of Section 80G(5), ignoring the trust's charitable intent and its activities' larger benefit to society, leading to an unjust conclusion.

5. The Ld. CIT-Exemption, Ahmedabad has erred in interpreting the legislative intent underlying the provision of Section 80G(5B) of the Income Tax Act, 1961. The said provision was inserted by Finance Act, 1999 with a view to extend eligibility for approval under section 80G(5) to trusts or institution predominantly engaged in charitable activities. According to this provision, eligibility for the approval under section 80G(5) is extended to trust or institution predominantly engaged in charitable activities provided their expenditure on religious activities does not exceed 5% of their income during the relevant previous year. The appellant trust conforms to this criterion as it has not incurred any expenditure towards religious activity.