Mere Religious Objects Not Fatal Unless Religious Spend Exceeds 5%

Shri Jain Swetamber Terapanthi Sabha Trust Vs CIT (Exemption) (ITAT Ahmedabad) The Ahmedabad Bench of the ITAT set aside the order of the CIT (Exemption) rejecting the assessee-trust’s application for approval under section 80G(5) on the ground that its objects were religious in nature. The Tribunal held that registration under section 80G cannot be denied merely because a trust has religious objects, unless it is shown that the whole or substantially the whole of its activities are religious, or that religious expenditure exceeds the statutory threshold of 5% of total income as prescribed u...