Section 80G Application cannot be denied if Religious Expense Under 5% of Income

Smasta Gurjar Kshatriya Kadiya Samaj Navsari Vs CIT (ITAT Ahmedabad) Income Tax Appellate Tribunal (ITAT) Ahmedabad bench has set aside an order by the Commissioner of Income Tax (Exemption) (CIT(E)) that rejected the application for 80G(5) approval submitted by Smasta Gurjar Kshatriya Kadiya Samaj Navsari. The Tribunal remanded the matter back to the CIT(E) for fresh consideration, emphasizing that the presence of a religious object in a trust’s deed does not automatically disqualify it from 80G exemption if its expenditure on religious purposes remains below 5% of its total income. The...