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Income Tax Appellate Tribunal, NAGPUR BENCH, NAGPUR
Before: SHRI V. DURGA RAO & SHRI K.M. ROY, ACCOUNTANT, MEMBER
Date of Hearing – 29/07/2024 Date of Order – 09/09/2024
O R D E R PER V. DURGA RAO, J.M.
The present appeal has been filed by the assessee challenging the impugned order dated 30/09/2019 passed by the learned Commissioner of Income Tax (Appeals), Delhi, [“learned CIT(A)”].
In its appeal, the assessee has raised following grounds:–
“1) Learned C.I.T. (Exemption) erred in assuming that the Assessee- Trust has incurred more than 5% of it's expenditure on religious activities without analysing the activities which were clearly of Public Charitable nature without any distinction as to colour, creed, caste or religion. He merely went by the nomenclature used in P and L A/c. without analysing the activities themselves. 2) Providing food to people, grass and cattle feed to cows, organising sanskar shibir, medial relief or medical camps, yoga camps for persons of all age, providing education to children, arranging intellectual and spiritual discourse and lectures for social reforms, and activities to 2 Shri Amardas Baba Sansthan Trust ITA no.38/Nag./2021 improve ethical and human values are all activities of Public Charitable nature. Merely because they are carried on at a place where the statue/Samadhi of Revered Amardas Baba is installed and the same is called as Amardas Baba Mandir or Amardas Baba Samadhi and where Puja and Aarti are regularly done, the activities do not cease to be of public charitable nature. 3) Learned C.I.T. (Exemption) failed to see, appreciate and apply the decision of Nagpur Bench of ITAT in the case of Shiv Mandir Deosthan Panch Committee Sanstha Vs. C.I.T. 150 TTJ 452/56 SOT 456 wherein on similar facts Hon. ITAT directed grant of 80G(5) approval. PRAYER: It is prayed that order of C.I.T. (Exemption) U/s.80G(5)(vi) rejecting Assessee's Application for approval under said section be kindly cancelled and Hon. C.I.T. (Exemption) be directed to grant approval to the Assessee Trust U/s.80G(5)(vi).”
During the course of hearing, the Registry has pointed out that there is a delay of 514 days in filing the present appeal by the assessee. The assessee has filed application dated 26/04/2021, along with affidavit duly sworn in, seeking condonation of delay. The reason for the delay in filing the appeal by the assessee is stated in its application to be that the assessee forgot to contact his Chartered Accountant for getting him prepared the appeal file for presenting the same before the Tribunal. Para–1 of the application dated 26/04/2021, filed seeking condonation of delay in filing the appeal is reproduced below:–
“1. Hon. Commissioner of Income Tax (Exemption) by his order dt.30.09.2019 rejected Assessee's Application for exemption U/s.80G(5)(vi) of 1.T.Act, 1961. Said order was received by the Assessee on 30.09.2019. Since the said order was not acceptable to the Assessee he sent the said order to their C.A. for doing the needful immediately. Since C.A. was busy in other professional of priority and since there was a lot time to file the Appeal he placed the said order on Assessee's file and asked the Assessee to contact him after about three- four weeks when he would prepare and file the Appeal. Assessee thereafter forgot to contact his C.A. and hence Appeal remained to be prepared and filed. (emphasis supplied)
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However, in the interest of justice, we are of the opinion that the assessee is prevented in filing its appeal belatedly and thus the delay of 514 in filing the present appeal is hereby condoned, as there is a sufficient cause. We now proceed to dispose of the appeal on merit after condonation of delay.
Here the learned Commissioner of Income Tax (Exemp.) (“the learned CIT(E)”) had denied the approval under section 80G(5)(vi) of the Income Tax Act, 1961 ("the Act") on the ground that the assessee trust only administering temple i.e., Shree Ramdas Baba Mandir and is carrying on only religious activities and such amount exceeds 5% of the total income of that year in contravention to the provisions of section 80G(5)(vi) of the Act. We find that the objectives of the trust cover religious, education and medical objectives under section 2(15) of the Act. Therefore, the rejection of registration of the assessee trust under section 80G(5)(vi) of the Act on the ground of solely religious in nature, has no application. Moreover, it has been adequately demonstrated that expenditure on religious activity did not exceed the threshold limit. Thus, we direct the learned CIT(E) to grant registration under section 80G(5)(vi) of the Act to the assessee trust from 01/04/2019, retrospectively. Accordingly, the grounds raised by the assessee are allowed.
In the result, appeal filed by the assessee is allowed. Order pronounced in the open Court on 09/09/2021
Sd/- Sd/- K.M. ROY V. DURGA RAO JUDICIAL MEMBER ACCOUNTANT MEMBER NAGPUR, DATED: 09/09/2024
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