Shri Sadhumargi Shantkranti Jain ... vs Commissioner Of Income-Tax( ... on 22 January, 2024
v) DIT(E) vs. International Society for Krishna Consciousness-
2011(1) TMI-1394 (Karnataka HC)
From the material on record, it is clear that the assessee is a society registered
under the Societies Registration Act. From the objects of the said society, it is clear
that they are carrying on religious and charitable activities. They have been
granted registration under s. 12AA and consequently under s. 80G of the Act being
satisfied that they are entitled to such exemption. It is only for the first time for the
year 2009 the CIT for the first time called upon them to show cause why the
registration should not be renewed (sic'refused) as it is a society which is only
carrying on religious activities. A detailed reply setting out their stand is filed, and
it is on record. In para 2 of the said statement of objections, the assessee has
categorically stated that the expenditure incurred for religious activity is less than
5 per cent of the total income and therefore entitled to benefit of s. 80G.
Unfortunately, the CIT has not adverted to the statement of objection except to the
first para where the assessee has asserted that they have established a temple and
are carrying on religious activities. Secondly the CIT has not taken note of the
amendment to s. 80G wherein notwithstanding anything contained in the aforesaid
provision, if the expenditure incurred towards religious activities is less than 5 per
cent of the total income, the benefit under s. 80G is available to such a trust.
Ignoring the aforesaid change in law, ignoring the assertion of the assessee in the
statement of objections claiming exemption because of the amended law, the CIT
proceeded to pass an order refusing registration. Therefore, such a finding
recorded by the CIT is without any substance. The Tribunal which on facts took
note of the aforesaid income and expenditure account and the relevant Schedules,
came to the conclusion that the expenditure incurred by the assessee towards
religious activities for two years is less than 5 per cent. The balance sheet or
income and expenditure account of the Schedules is not in dispute. It is under those
circumstances the appellate authority has applied its mind, looked into aforesaid
undisputed records and has recorded a finding of fact.