GURU GADDI BABA PRABHU DYAL CHARITABLE TRUST,CHANDIGARH vs. COMMISSIONER OF INCOME TAX (APPEALS), CHANDIGARH

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ITA 590/CHANDI/2026Status: DisposedITAT Chandigarh06 August 2026AY 2026-272 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the impugned order and restored the issue of approval back to the CIT(Exemptions). This was done because the related issue of registration under Section 12AB(1)(b) had already been set aside by the Tribunal and its adjudication would impact the 80G approval.

What were the facts?

The assessee's application for approval under Section 80G(5)(ii) was rejected by the CIT(Exemptions). This rejection was based on the assessee being classified as a religious entity and the application being filed under the wrong clause.

What were the issues?

Whether the rejection of 80G approval was justified given the pending adjudication of the Section 12AB registration, and if the application was filed under the wrong clause.

Which sections of the Income-tax Act were involved?

Section 80G(5)(ii),Section 12AB(1)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, CHANDIGARH

Before: HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM & HON’BLE SHRI RAJESH DAMODARLAL SHARMA, JM

IN THE INCOME TAX APPELLATE TRIBUNAL “A” BENCH, CHANDIGARH HYBRID HEARING BEFORE HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM AND HON’BLE SHRI RAJESH DAMODARLAL SHARMA, JM आयकरअपीलसं. / ITA No.590/CHANDI/2026 Guru Gaddi Baba Prabhu Dyal CIT (Exemptions) बनाम/ Charitable Trust C. R. Building, Himalaya Marg SCO 80-81, 3rd Floor, Sector 17-C Sector – 17E, Chandigarh – 160017 Vs. Chandigarh – 160017 �ायीलेखासं./जीआइआरसं./PAN/GIR No. AADTG-2072-P (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Sh. T.N. Singla (CA) – Ld. AR ��थ�कीओरसे/Respondent by : Smt. Jaishree Sharma (CIT) - Ld. DR (Virtual) सुनवाईकीतारीख/Date of Hearing : 05-08-2026 घोषणाकीतारीख /Date of Pronouncement 06-08-2026 : आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of an application as filed by the assessee seeking approval u/s 80G(5)(ii) vide impugned order dated 06.03.2026 of Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)], the assessee is in further appeal before us. 2. During hearing, it transpires that the issue of registration u/s 12AB(1)(b) has already been set aside by Tribunal to the file of Ld. CIT(E) in ITA No. 589/Chd/2026 order dated 03.06.2026. The Tribunal set aside the order on the ground that the assessee was accorded

status of Religious entity as against the claim of the assessee that it was a religious cum charitable trust. We find that impugned approval has been rejected on the ground that the assessee was a religious entity and further the application was filed under wrong clause. Since the issue of registration u/s 12AB(1)(b) has been restored back by Tribunal to Ld. CIT(E) and the adjudication of the same would have material bearing on approval u/s 80G(5), we set aside the impugned order and restore the issue of approval back to the Ld. CIT(E) on similar lines. If the application has been preferred under wrong clause inadvertently, the same would be considered under correct clause. 3. The appeal stand allowed for statistical purposes. Order pronounced on 06th August, 2026

-Sd- -Sd- (RAJESH DAMODARLAL SHARMA) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AS Dated: 06-08-2026 आदेश की �ितिलिप अ�ेिषत /Copy of the Order forwarded to : 1. अपीलाथ�/Appellant 2. ��थ�/Respondent 3. आयकरआयु�/CIT 4. िवभागीय�ितिनिध/DR 5. गाड�फाईल/GF

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