INCOME TAX ACT, 1961

Section 80G(5)

Deduction under section 80G(5) - Recognition under section 80G(5) - Refusal of registration -

Assessee-trust was engaged in spiritual activities like celebration of festivals, to coordinate and get-together the people of spiritual mind of Dyans, Yoga, etc. It was holding valid registration under section 80G(5) upto 31-3-2006 from 31-3-1993. As the certificate granting registration under section 80G(5) got expired on 31-3-2006, the assessee applied for renewal of the registration. CIT rejected such registration application by holding that the objects of trust were mixed as those cover religious and charitable activities, therefore, the assessee did not deserve to get the certificate under section 80G(5). Held: Assessee cannot get the benefit of registration under section 80G(5) if it's activities wholly or substantially the wholly are of religious nature. However, in the instant case, CIT did not bring any specific instances suggesting that the activities of the assessee were religious in nature. Moreover, the assessee was granted registration under section 80G(5) right from 31-3-1993 to 31-3-2006 on the same kind of activities. It was also an undisputed fact that there was no change in the objects and the activities of the trust. Therefore, the assessee was granted registration under section 80G(5) as per the rule of consistency.

Relied:Radhasoami Satsang v. CIT (1992) 193 ITR 321 (SC): 1992 TaxPub(DT) 0858 (SC)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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