SHREE GOLALARIA DIGAMER JAIN SAMAJNYAS 64,INDORE vs. CIT EXEMPTION, BHOPAL

ITA 785/IND/2026Status: DisposedITAT Indore18 August 202610 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the application under Form 10AB ought to have been filed under clause 80G(5)(i), and the selection of 80G(5)(ii) was a procedural error. However, the Tribunal also noted that the assessee should have been more vigilant when making the application. Despite this, the Tribunal considered that registration under section 12AB(1)(b) was granted on the same date as the impugned order and that the assessee was not put to notice regarding the charge under section 80G(5B). The Tribunal found that the show cause notice did not raise the issue of 80G(5B). Therefore, the Tribunal set aside the "Impugned Order" and remanded the matter back to the CIT(E) for de novo consideration. The assessee was granted liberty to rectify the mistake in Form 10AB and was directed to cooperate with the department and not seek frivolous adjournments. The assessee was also admonished against future mistakes. The appeal was allowed for statistical purposes.

What were the facts?

The assessee, Shree Golalaria Digamer Jain Samaj Nyas, a trust engaged in charitable and religious activities, is in appeal against an order dated 25.03.2026 passed by the learned Commissioner of Income Tax (Exemption) [CIT(E)]. The assessee had previously obtained approval under clause (i) of the first proviso to section 80G(5) from CPC on 04.04.2022. Subsequently, the assessee filed Form 10AB seeking renewal/approval under section 80G(5)(ii). The CIT(E) rejected the application, citing that the assessee had not obtained approval under section 80G prior to 01.04.2021, had selected the wrong clause in the application, and allegedly lacked valid registration under section 12A/12AA/12AB. Additionally, the CIT(E) noted that expenditure on religious activities exceeded 5% of the total income.

What were the issues?

1. Whether the learned CIT(E) erred in rejecting the application for approval under section 80G(5)(ii) of the Income Tax Act, 1961, on the facts and circumstances of the case? 2. Whether the learned CIT(E) erred in holding that the appellant trust was not in possession of valid registration under section 12A, 12AA, or 12AB, despite having been granted registration under section 12AB(1)(b) on 25.03.2026? 3. Whether the rejection of the application merely on account of alleged filing under the wrong clause is a technicality that cannot be a ground for denying the substantive benefit under section 80G? 4. Whether the learned CIT(E) erred in rejecting the application on alleged violation of section 80G(5B) without properly appreciating the nature, objects, and activities of the trust? Assessee's contentions: The assessee argued that the "Impugned Order" was bad in law and illegal, violating principles of natural justice. They contended that selecting clause 80G(5)(ii) instead of 80G(5)(i) in Form 10AB was a procedural error. The assessee also pointed out that the violation of section 80G(5B) was not confronted in the show cause notice and its basis was not disclosed in the impugned order. They relied on the fact that registration under section 12AB(1)(b) was granted on the same date as the impugned order. The assessee prayed for the matter to be remanded back to the CIT(E) to consider the application under the applicable clause. Revenue's contentions: The revenue contended that nothing prevents the assessee from applying afresh under the correct clause.

Which sections of the Income-tax Act were involved?

Section 80G,Section 80G(5),Section 80G(5)(i),Section 80G(5)(ii),Section 80G(5B),Section 12A,Section 12AA,Section 12AB,Section 253

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

For Appellant: CA &, Ms. Shradha Piplodia, Adv
Hearing: 10.08.2026Pronounced: 18.08.2026

Per Paresh M Joshi, J.M.:

This is an Appeal filed by the Assessee under section 253 of the income tax Act 1961, [hereinafter referred to as the Act

for sake of brevity] before this tribunal as and by way of an appeal. The Assessee is aggrieved by the order bearing

number: - ITBA/EXM/F/EXM45/2025-26/1087910274(1)

dated 25.03.2026, which is hereinafter referred to as the “Impugned order”.

SHREE GOLALARIA DIGAMER JAIN SAMAJNYAS ITA No. 785/Ind/2026 - A.Y.-NA

2.

Factual Matrix

2.

1 The Assessee is a trust and is engaged in charitable and religious activities.

2.

2 That the Assessee trust had earlier obtained an approval

under the new regime under clause (i) of the f

The order continues below.

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