RANIMA SARVAJANIK CHARITABLE TRUST,BHAVNAGAR vs. THE CIT(EXEMPTION), AHMEDABAD
Facts
The assessee, a charitable trust, filed an appeal against the rejection of its registration under section 80G(5) by the CIT(Exemption). The rejection was based on the ground that the trust was religious-cum-charitable and violated section 80G(5)(ii) of the Act.
Held
The Tribunal noted that the CIT(Exemption) had not considered the expenses incurred by the assessee for religious purposes. Therefore, the Tribunal set aside the impugned order and remanded the matter back to the CIT(Exemption) for a fresh analysis.
Key Issues
Whether the trust's religious activities exceeded the prescribed limit, thus violating section 80G(5), and whether the CIT(Exemption) properly examined the expenses before denial.
Sections Cited
80G(5), 80G(5)(ii), 12AB, 80G(5B)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH
Before: Shri T.R. Senthil Kumar & Shri Narendra Prasad Sinha
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before: Shri T.R. Senthil Kumar, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member ITA No: 1447/Ahd/2025
Ranima Sarvajanik The CIT(Exemption), Charitable Trust Ahmedabad Plot No. 535, Vs Manekwadi Circle, Krishnanagar, Bhavnagar-364001 PAN: AAATR8562Q (Respondent) (Appellant) Assessee Represented: Shri Mohit Balani, A.R. Revenue Represented: Shri R P Rastogi, CIT-DR Date of hearing : 25-03-2026 Date of pronouncement : 27-03-2026 आदेश/ORDER PER: T.R. SENTHIL KUMAR, JUDICIAL MEMBER This appeal is filed by the Assessee as against the order of rejection passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying registration under section 80G(5) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
The registry has noted that there is a delay of 139 days in filing the above appeal. It is explained that the previous Tax Consultant has not informed the rejection order passed by Ld. CIT(E), when the same was came to the knowledge of the Trustees,
I.T.A No. 1447/Ahd/2025 2 Ranima Sarvajanik Charitable Trust. Vs. CIT(E)
appeal was filed with a delay of 139 days. Considering the submissions of the assessee, the delay of 139 days in filing the appeal is hereby condoned.
Ld. CIT(E) rejected the registration u/s. 80G(5) of the Act on the ground that the assessee is not a purely charitable Trust but religious-cum-charitable Trust and violated conditions under 80G(5)(ii) of the Act.
At the outset, Ld. Counsel appearing for the assessee submitted that the assessee got approval u/s. 12AB on 12-02-2026 for the Asst. Years 2027-28 to 2036-37. Whereas by this impugned order dated 18-12-2024 denied registration u/s. 80G(5) of the Act on the ground of religious activities. The assessee also submitted it has not done any religious activities above the prescribed limit of 5% which was not examined by the Ld. CIT(E) before denial of registration. The assessee also produced before us Profit and Loss accounts and Balance Sheet in support of its claim.
Considering the submission of the assessee and Ld. CIT(E) has not considered the expenses incurred by the assessee for religious purposes. We deem it fit to set-aside the impugned order to the file of Ld. CIT(E) with a direction to carry out necessary analysis in this respect and thereafter pass the order in accordance with law. Since, similar view taken by the Co-ordinate Bench of this Tribunal in the case of Shree Sattavis Kadva patidar Pragati Mandal vs. CIT(E) in ITA No. 414/Ahd/2023 vide order dated 08-05-2024 and Gurukrupa Foundation vs. CIT(E) reported in [2025] 172 taxmann.com 737 has also taken an identical view in the matter.
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Therefore, the matter is restored to the file of the Id. CIT(E), who should examine the matter and give a categorical finding on the applicability of provision of section 80G(5B) of the Act or otherwise. If the expenditure incurred by the assessee on religious purposes is found to be within the prescribed limit of 5% of its total income, then the approval as sought for u/s 80G(5) of the Act should be allowed to the assessee.
In the result, the appeal filed by the Assessee is treated as allowed for statistical purpose.
Order pronounced in the open court on 27 -03-2026
Sd/- Sd/- (NARENDRA PRASAD SINHA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad : Dated 27/03/2026 आदेश क� ��त�ल�प अ�े�षत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपील�य अ�धकरण, अहमदाबाद
