S.K. Yadav, Judicial Member. - This appeal is preferred by the assessee against the order of the CIT refusing the grant of registration u/s 80G of the Income-tax Act (hereinafter called as an 'Act'). Though various grounds are raised in this appeal but they all relate to the validity of the rejection of grant of registration u/s 80G of the Act.

2. The facts in narrow compass borne out from the order of the CIT are that the assessee society was initially recognized u/s 80G of the Act up to 31.3.2007. However, there after there was no request for renewal w.e.f. 1.4.2007 and only after a gap of more than 2 years, the assessee society moved a fresh application for certificate of exemption u/s 80G of the Act. The facts narrated in the CIT's order are that the assessee societies came into existence with the objects of evangelising and edifying the body of Lord Jesus Christ so as to spread His teachings to far off villages, to publish Christian magazines, journals, etc., besides, undertaking certain charitable activities for amelioration of the poor, destitutes, orphans, disabled, aged and sick persons as also provide vocational training to adults and children for enabling them to earn livelihood. Thus, the objects of the society are both religious and charitable in nature when it came into existence. Much later in the year 2004, the society introduced new objects, being establishment and running educational institutions to serve the minority Christian community by providing to them technical, medical, engineering and other humanities related education and maintenance of an orphanage and provision of relief to the lepers, aged and poor. Therefore, both the objects as well as the activities of society represent an admixture of religious and charitable purpose and activities. The CIT has also observed that from a certificate of registration u/s 12AA of the Act dated 14.3.2005, it was not clear whether the society has been registered as a wholly charitable society or as a wholly religious society. But since the recognition u/s 80G of the Act has been granted subsequently, the status of the society gives the impression that it is recognized as a charitable society.

3. The CIT has examined the accounts of the society and noticed that the activities of the society are substantially of religious nature and not for charitable purpose. From the copies of account for the assessment year 2006-07 to 2008-09 enclosed with the application form no.10G, it was noticed by the CIT that this society has been undertaking substantially higher volume of religious activities as compared to its charitable activities. Relevant details of religious and charitable activities are extracted in a tabulated form in his order. Though the assessee tried to justify the expenditures with the submission that the expenditure towards the religious activities are minimal, but CIT was not convinced with the explanations of the assessees and he rejected the request for grant of certificate of recognition u/s 80G of the Act after having observed that the assessee's case is hit by explanation (3) to section 80G of the Act.

4. Aggrieved, the assessee has preferred an appeal before us with the submission that CIT has not properly appreciated the facts of the case and the details of expenditures submitted by the assessees. CIT himself has accepted that the assessee is also engaged in establishing and running educational institutions by providing technical, medical, engineering and other humanities related education and also for maintenance of an orphanage and providing relief to the lepers, aged and poors. Whatever salaries were paid to the staff, it should be considered under the head expenditure on charitable activities but CIT has considered the salaries under the head expenditure for religious activities. The assessee has also filed a comparative table showing details of expenditure incurred for religious activities and also for charitable activities. The Ld. Counsel for t