TUSHITA RETREAT PUBLIC CHARITABLE SOCIETY,KANGRA vs. CIT(E), CHANDIGARH

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, CHANDIGARH HYBRID HEARING BEFORE HON’BLE SHRI LALIET KUMAR, JM AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.1814/CHANDI/2025 Tushita Retreat Public Charitable Society CIT(Exemption) बनाम/ 1, Dharamkot Mecleodganj C.R. Building, Sector – 17E Vs. Kangra, Himachal Pradesh – 176057 Chandigarh – 160017 �ायीलेखासं./जीआइआरसं./PAN/GIR No. AABAT-3953-D (अपीलाथ�/Appellant) : (��थ� / Respondent) अपीलाथ�कीओरसे/ Appellant by : Sh. Aman Patri (Advocate) – Ld. AR ��थ�कीओरसे/Respondent by : Smt. Kusum Bansal (CIT) - Ld. DR सुनवाईकीतारीख/Date of Hearing : 25-05-2026 घोषणाकीतारीख /Date of Pronouncement : 02-06-2026 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of approval application as filed by the assessee under Clause (ii) to proviso to Sec. 80G(5) vide impugned order dated 02-12-2025 of Ld. Commissioner of Income Tax (Exemption), Chandigarh, [CIT(E)], the assessee is in further appeal before us. Having heard rival submissions, the appeal is disposed-off as under. 2. Upon perusal of paras 3.1. & 3.2 of the impugned order, it could be seen that the approval has been denied on the ground that the

assessee was engaged in religious activities. The Ld. CIT(E) invoked the provisions of Sec.80G(5)(iii) and Explanation-3 to deny approval to the assessee trust. The Ld. AR drew attention to its application as placed on Page No.1 to 8 of the paper-book to state that the object of the assessee-trust was qua relief to the poor, education, medical relief and advancement of any other objects of general public utility. The attention was also drawn to assessee’s financial statements for FYs 2022-23 to 2024-25 to argue that no expenditure was incurred on religious activities and the conclusion of Ld. CIT(E) was misplaced misconceived. Reference has also been made to assessee’s Memorandum of Association (MOA) of assessee-trust to contend that none of its objects are religious in nature. Lastly, Ld. AR contended that the impugned issue was never confronted to the assessee and no effective opportunity was granted to rebut the same. The Ld. CIT-DR fairly stated that the matter could be re-examined by approving authority. 3. Finding substantial force in the arguments of Ld. AR and keeping in mind the fact that no effective opportunity was granted to the assessee to rebut the impugned fact, we deem it fit to set aside the impugned order and restore the issue of approval back to the file of Ld. CIT(E) for de novo consideration with a direction to the assessee to plead and prove its case forthwith.

-Sd- -Sd- (LALIET KUMAR) (MANOJ KUMAR AGGARWAL) JUDICIAL MEMBER ACCOUNTANT MEMBER AS Dated: 02-06-2026 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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