Registration u/s 80G(5)(vi) of the Income-tax Act can be granted to a trust having religious objects.

 

Hon’ble Pune ITAT in its recent judgment in the case of Shri. Sant Zolebaba Sansthan Chikhali Vs. CIT, ITA No. 381/Pun/2021 has held that registration u/s 80G(5)(vi) of the Income-tax Act can be granted to a trust having religious objects.

 

It has pointed out that the Explanation 3 and sub-section 5B of section 80G permits the same. (Order Copy attached).

In the given case, the expenditure were grouped as ‘Religious’ in the financials but in actual were relating to preparation and distribution of food to the needy, conducting sessions for teaching life morals for greater good of society etc., which cannot not be categorized as religious expenditure as it was not incurred for the benefit of a specific community or any specific religion. Thus, the 5% criteria as set in subsection 5B of section 80G also gets fulfilled.

It was held that the objects like facilitating daily prayers; organizing religious programmes; arranging accommodation for pilgrims; arranging religious and spiritual education; running food facility and medical facility for villagers and helping the poor, orphans etc. do not refer to any particular religion.

 

Thus, the objects talk of upliftment of all the sections of the society coming from any religion, caste or creed. Thus, Hon’ble Bench held that Appellant trust deserves registration u/s 80G(5)(vi) and accordingly overturned the rejection order of CIT(Exemptions).

 

The copy of the order is as under:

Attachments area80G AND RELIGIOUS ACTIVITY (1)