SEEMA AND S K JAIN FOUNDATION,DELHI vs. CIT(EXEMPTIONS), DELHI

PER ANUBHAV SHARMA, JM:

This appeal is preferred by the assessee against the order dated
23.09.2024 of the Ld. Commissioner of Income-tax (Exemption), New Delhi, rejecting application for approval u/s 80G(5)(iii) of the Income-tax Act, 1961. 2. On hearing both the sides, we find that while passing the impugned order, the ld. CIT(E) has observed as follows;

“The applicant has filed an application dated 04.03.2024 in Form 10AB for approval u/s 80G(5)((iii) under section code 14A of the Income Tax Act, 1961. The applicant was issued a questionnaire dated 15.04.2024 with a request to furnish certain details / documents
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/ clarifications in support of its claim of approval u/s 80G(5). The case was fixed for compliance on 30.04.2024. In response, the applicant has filed details by way of copy of trust deed, declarations, bank statement, financial for the period from 19.07.2023 to 31.03.2024. It is noted that dissolution clause is not there in the trust deed. Further, after going through the financials submitted, it is found that during the year the trust has not conducted any charitable activity but has only donated Rs.2,11,000/- is total to two other trusts. However, the status/objects of these trust/societies are not provided. The applicant has donated of Rs.2,00,000/- to Shree
Mahavir Chatyalaya on account of “construction of Vedi” which is religious in nature. The applicant has also given its projections & proposal for future under which he has planned to spend money for temple construction.
Considering all above, the applicant is not found to satisfy conditions for obtaining approval u/s 80G.
In light of the above, the application filed in Form 10AB for grant of approval u/s 80G(5)((iii) is hereby rejected.”
3. Ld. CIT(E) has primarily held that necessary documents were not filed of the beneficiary trusts so the status/objects of these trust/societies are not provided and assistance for construction of “Vedi” is religious in nature. We are of considered view that there is nothing in order to show that any specific direction was issued to assessee to file the evidences of the status/objects of beneficiary trust/societies. At the same time like Yoga, ‘Hawan’ is not something completely a religious activity of any particular religion but very much part of Indian spiritual system of knowledge and practice. Further, Ld.
CIT(E) should also have kept in mind that where trust is doing composite
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activity, then for being involved in some religious activity too, the benefit of registration cannot be denied.
4. Accordingly, the issue is restored to the files of the ld.CIT(E) to call for relevant information and decide the application afresh as per law and specially keeping in mind the aforesaid observations of this bench.. The appeal is allowed, for statistical purposes only.

Order pronounced in the open court on 18.07.2025. (MANISH AGARWAL)
JUDICIAL MEMBER

Dated: 18th July, 2025. dk