NIMAAYA WELFARE FOUNDATION,SURAT vs. COMMISSIONER OF INCOME TAX (EXEMPTION), AHMEDABAD

The ld. AR of the assessee submits that the assessee has also furnished details of charitable activities by furnishing the details of patients which were treated on charging nominal fees as per object of assessee, details of which are available at page No. 88-89 of the paper book alongwith their complete details from page No. 91 to 101 of the paper book. The ld. AR of the assessee submits that he has filed his affidavit on record that he was entrusted the work for filling application for obtaining registration under Section 12A and 80G of the Act. His staff while filling online application on 25/09/2021 and 30/09/2022 in Form 10A and 10AB had inadvertently selected “Religious” as one of the object. In fact, the object of assessee foundation are not religious in nature. The ld. AR of the assessee submits that the ld. CIT(E) while rejected the application under Section 80G of the Act only on the ground that the assessee has mentioned one of the object as “religious” and that as per Section 80G(5), the said Section applies to any donation or any institution or fund referred to in sub-clause (iv) of clause (a) of sub-section (2) only, if it is established for a charitable purpose.

The ld. AR submits that the assessee retreated that the assessee was set up/established only for charitable purpose. There is no religious object in the Memorandum of Association, copy of which is filed on record. The ld.

On the other hand, the learned Commissioner of Income Tax- Departmental Representative (ld. CIT-DR) for the revenue submits that the assessee itself while filing application mentioned as one of their object as “Religious”. This object is not reverted before ld. CIT(E). The explanation of assessee that it is not religious, came for the first time before the Tribunal. The ld. CIT(E) rejected the application of assessee on the basis of information provided by assessee itself. The assessee does not deserve any relief from the Tribunal. In alternative submission, the ld. CIT-DR for the revenue submits that in case the contention of ld. AR of assessee is accepted, that there is no religious purpose in the object of the assessee, then the matter may be restored back to the file of ld. CIT(E) for examining the case of assessee afresh.

We have considered the submissions of both the parties and perused the order of ld. CIT(E) carefully. On careful perusal of order, we find that the assessee filed application for approval of Trust under Section 80G(5) of the Act in Form 10AB electronically on 30/09/2022. The ld. CIT(E) required certain details on the activities carried out by the Trust alongwith details/documents required/mentioned therein. In response to such show cause notice, the assessee furnished details/documents. On considering the details and the documents and the information mentioned in Form Nimaaya Welfare Foundation Vs CIT(E) 10AB, the ld. CIT(E) noted that the assessee has mentioned one of their object as “Religious”. However, the ld. CIT(E) was of the view that provisions of Section 80G(5) prescribed that said Section applies to any donation or any institution or fund referred to in sub-clause (iv) of clause (a) of sub-section (2) only, if it is established in India for a charitable purpose and it fulfils other conditions mentioned therein. Further Section 80G(5)(iii) stipulates that institution of fund is not expressed to be for the benefit of any particular religious, community or caste and is established for charitable purpose. The ld. CIT(E) in para 9 of its order has noted that the assessee himself accepted that some of the object are religious in nature. Thus, the assessee has violated the provisions of the Act and not entitled for approval under Section 80G(5) of the Act and rejected the application. In order words, the sole basis of rejection of assessee’s application is the fact that the assessee has mentioned as one of their object as “Religious”. However, on careful perusal of objection of assessee, copy of which is filed on record, we found that there is no religious object, in the objects of assessee, thus we found merit in the submission of ld. AR of the assessee while filling online Form under Form 10AB, the assessee has inadvertently selected “Religious” as one of their object, though there is no such object in their Memorandum of association. We further find that the assessee has placed on record sufficient material to prove the charitable activities. Otherwise the Nimaaya Welfare Foundation Vs CIT(E) charitable activities are not disputed by the ld. CIT(E). Therefore, considering the facts and circumstances of the present case, we direct the ld. CIT(E) to examine the object of assessee as per their Memorandum of Association and to grant registration under Section 80G(5) of the Act in accordance with law. In the result, the grounds raised