HINDU SEVA FOUNDATION,NEW DELHI vs. CIT(E), NEW DELHI

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ITA 6184/DEL/2026Status: DisposedITAT Delhi06 August 2026AY 2026-275 pages

In favour of the assessee: the assessee's appeal was allowed. From the AI summary of this appeal.

AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CIT(E) erred in rejecting the application solely based on the objects clause without verifying expenditure on religious activities. The amended Section 80G(5)(ii) allows up to 5% of total income for religious activities.

What were the facts?

The assessee, Hindu Seva Foundation, applied for approval under Section 80G. The CIT(E) rejected the application because one of the trust's objects was to establish places of worship, deeming it religious in nature.

What were the issues?

Whether an application for 80G approval can be rejected solely based on a religious object clause without considering actual expenditure and the allowance for minor religious expenditure under the Act.

Which sections of the Income-tax Act were involved?

Section 80G,Section 80G(5)(ii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH ‘F’: NEW DELHI

Before: SHRI S. RIFAUR RAHMAN & SHRI VIMAL KUMAR

For Appellant: Adv. & Sh. Ankit Yadav
Hearing: 24.06.2026Pronounced: 06.08.2026

PER S. RIFAUR RAHMAN, AM:

The assessee has filed appeal against the order of the learned Commissioner of Income Tax (Exemption), New Delhi [“ld. CIT(E)”, for short] dated 18.03.2026 u/s 80G of the Income Tax Act, 1961 (for short ‘the Act’).

2 ITA No. 6184/Del/2026 Hindu Seva Foundation 2. Brief facts of the case are that the assessee filed an application in Form 10AB seeking approval u/s 80G(5)(ii) of the Income Tax Act, 1961 dated 30.09.2025, a notice was issued in the form of questionnaire on 31.12.2025 directing the assessee to furnish the relevant information. The assessee filed submission on 15.01.2025. After perusing trust deed and objects of the trust, the ld. CIT(E) observed that one of the objective is to be established places for worship and other institutions of similar nature in India. Since the activity is religious in nature on the above basis, he rejected the application filed by the assessee. 3. Aggrieved with the above order, the assessee is in appeal before us raising the following grounds of appeal:

“1. That under the facts and circumstances of the case, the impugned order dated 18.03.2026 passed by CIT(E), u/s 80G(5)(ii) of the Income Tax Act, 1961 (hereinafter referred to as "the Act"), generated vide DIN: ITBA/EXM/F/EXM45/2025- 26/1087565335(1), rejecting the application for registration u/s 80G(5)(ii) of the Act, is bad in law on account of several grounds.

2.

That under the facts and circumstances of the case the Ld. CIT(E), has erred in law as much as in fact while passing the impugned order, without providing adequate reason for rejecting the application and reasonable opportunity of being heard, which is a violation of the principle of natural justice.

3.

That under the facts and circumstances of the case the Ld. CIT(E), has erred both on facts and in law in rejecting the application under Section 80G merely on the ground that one of the objects of the Trust relates to religious activities, without appreciating the true nature, scope and dominant purpose of the Trust.

4.

That under the facts and circumstances of the case the Ld. CIT(E), failed to appreciate that the primary and dominant objects of the Trust are charitable in nature and are directed

3 ITA No. 6184/Del/2026 Hindu Seva Foundation towards public welfare, education, relief, social upliftment and other charitable purposes within the meaning of Section 2(15) of the Income-tax Act, 1961. 5. That under the facts and circumstances of the case the Ld. CIT(E), erred in holding that existence of a single object having religious character automatically disentitles the Trust from approval under Section 80G, without examining whether the activities of the Trust are wholly or substantially religious in nature. 6. That appellant craves to leave, alter, amend or modify the grounds of appeal before or during the hearing of the appeal. 7. That each ground is independent and without prejudice to each other.

4.

At the time of hearing, ld. AR of the assessee brought our notice, brief facts of the case and submitted that the assessee was granted registration u/s 12AB from the year 2013 onwards and subsequently granted registration in the year 2021 and also for the current period from the year 2026, the relevant registrations are placed in the paper book. With regard to the registration u/s 80G, he submitted that the assessee was granted registration in the years 2013 and 2021, the relevant registration is placed on record. Further, he submitted that the ld. CIT(E) has merely observed that one of the object of the society is to establish places of worship and other institutions of similar nature. In this regard, he submitted that assessee has not incurred any expenditure towards the religious activities. He further submitted that as per modified provisions of section 80G(5) specifically allows not exceeding 5% of the total income for the purpose of religious activities. In the given case, the ld. CIT(E) merely observed that one of the object is establishing places of worship, he

4 ITA No. 6184/Del/2026 Hindu Seva Foundation rejected the application for registration u/s 80G. In this regard, he relied on the following cases wherein ITAT has directed the authorities to grant registration u/s 80G when the assessee has not incurred any expenditure towards religious activities. He prayed that the similar direction may be given in the present case.

5.

On the other hand, the ld. DR relied on the findings of the ld. CIT(E).

6.

Considered the rival submissions and materials placed on record. We observed that the ld. CIT(E) rejected the application filed by the assessee u/s 80G merely on the basis that one of the objects of the assessee is to establish for worship and other institutions of similar nature in India. He has not brought on record how much the expenditure, the assessee has incurred towards above objects. We observed that from the provisions of section 80G(5)(ii) of the Act, the amended provisions of Acts itself allows the relevant institutions to spend not exceeding 5% of the total income towards religious activities in the above said nature, since ld. CIT(E) has not verified the above aspect and merely rejected the application on the basis of objects clause. In our considered view since the assessee has not incurred any expenditure towards this objects and even otherwise assessee is allowed to spent expenditure to the extent of 5% of the total income in such religious activities as per modified provisions. Ld. CIT(E) cannot simply reject the application without application of mind, therefore, we are inclined to direct the ld. CIT(E) to grant registration u/s 80G

5 ITA No. 6184/Del/2026 Hindu Seva Foundation as per factual matrix available on record and even otherwise in case the expenditure incurred by the assessee towards religious activities is Nil or less than 5%, the assessee should be granted registration u/s 80G. We direct accordingly.

7.

In the result, the appeal filed by the assessee is allowed.

Order is pronounced in the Open Court on 06.08.2026

Sd/- Sd/- (VIMAL KUMAR) (S. RIFAUR RAHMAN) JUDICIAL MEMBER ACCOUNTANT MEMBER Dated: 06.08.2026 *GP/Sr.PS* Copy forwarded to: 1. Appellant 2. Respondent 3. CIT(E) 4. CIT 5. DR: ITAT ASSISTANT REGISTRAR ITAT NEW DELHI

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