Mumukshu Ashram, Shahjahanpur V. Commissioner of Income Tax (E), Lucknow

ITA 692/LKW/2019

AI Insights

Mumukshu Ashram appealed against the decision of the Commissioner of Income Tax (Exemptions), Lucknow, which had denied their application for registration under Section 80G of the Income Tax Act, 1961. The CIT(E) had rejected the application on the grounds that the Ashram was engaged in 'saint service' and that expenditures on religious activities exceeded 5% of total receipts. The Tribunal, however, found no substantial evidence or reasoning in the CIT(E)'s decision to classify 'saint service' as non-charitable or to substantiate the claim regarding the financial allocation to religious activities. Consequently, the Tribunal set aside the CIT(E)'s order and directed the grant of 80G registration.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 113272 (ITAT-LUCKNOW)
• Duration Of Justice: 3 year(s) 8 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 31-08-2023
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 29-08-2023
• Assessment Year: misc
• Appeal Filed On: 01-12-2019
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 80G

Judgement Text

I.T.A. No.692/Lkw/2019 Assessment Year: N. A. 1 IN THE INCOME TAX APPELLATE TRIBUNAL LUCKNOW BENCH ‘A’, LUCKNOW BEFORE SHRI SAKTIJIT DEY,VICE PRESIDENT AND SHRI ANADEE NATH MISSHRA, ACCOUNTANT MEMBER I.T.A. No.692/Lkw/2019 Assessment Year: N.A. Mumukshu Ashram, P.O. Mumukshu Ashram, Shahjahanpur PAN- AABTM 7595F Vs. CIT (Exemptions), Lucknow. (Appellant) (Respondent) O R D E R PER ANADEE NATH MISSHRA:A.M. (A) This appeal has been filed by the assessee against impugned order dated 30/08/2019 of learned Commissioner of Income Tax (Exemption), Lucknow [“CIT(E)” for short]. The sole ground of the assessee is as under: “That the ld. Commissioner of Income Tax (Exemption), Lucknow erred on facts and in law in denying registration u/s. 80G of the I.T. Act, 1961.” Appellant by None present for the Assessee Respondent by Shri S. H. Usmani, CIT (DR) Date of hearing 30/08/2023 Date of pronouncement 01/09/2023 I.T.A. No.692/Lkw/2019 Assessment Year: N. A. 2 (B) This appeal has been filed by the assessee beyond the time limit prescribed u/s. 253(3) of the Income Tax Act, 1961 (for short ‘the Act’). The assessee-applicant has filed application for condonation for delay. In view of the same, the ld. CIT(DR) for Revenue expressed no objection to condonation of delay. Therefore, we are satisfied that there was sufficient cause for not presenting the appeal, within the meaning of Section 253(5) of the I.T. Act. Accordingly, we admit the appeal for decision on merits. (C) The assessee filed application for registration u/s. 80G(5) of the I.T. Act on 12.02.2019 in the Office of the CIT(E). Vide the impugned order dated 30.08.2019, the ld. CIT(E) rejected the assessee’s application seeking approval u/s. 80G on the ground that the applicant was doing ‘saint service’, and further that the assessee was making payments/expenses on religious activities/maintenance of saints at more than 5% of its total receipts. (D) On perusal of records, we find no material to hold that saint service is not a charitable activity. The ld. CIT(E) has failed to mention any reason for his view that saint service is religious and not a charitable activity. Further, it is not the case of Ld. CIT(E) that the saint service provided by the assessee was limited to saints of any particular religion. Moreover in the impugned order the ld. CIT(E) has failed to discuss any materials for his conclusion that more than 5% of the assessee total receipts were being used for religious activities/maintenance of saint. He has given no details in his I.T.A. No.692/Lkw/2019 Assessment Year: N. A. 3 impugned order as to which expenses were being treated by him as expenses towards religious activities. In view of the foregoing, we are of the view that the ld. CIT(E) has failed to establish that the assessee’s application for registration u/s. 80G of the I.T. Act did not deserve approval. (E) In view of the foregoing, we set aside the impugned order dated 30.08.2019 of the ld. CIT(E) and we direct the ld. CIT(E) to grant approval to the assessee u/s. 80G of the I.T. Act. (F) In the result, appeal filed by the assessee stands allowed. (Order pronounced in the open court on 01/09/2023) Sd/- Sd/- (SAKTIJIT DEY) (ANADEE NATH MISSHRA) Vice President Accountant Member Dated: 01/09/2023 Aks/- Copy of the order forwarded to : 1. The Appellant 2. The Respondent. 3. Concerned CIT 4. D.R., I.T.A.T., Assistant Registrar