ASHOKNAGAR SHRIRAMAKRISHNA SANGHA,ASHOKENAGAR BARASAT vs. CIT(E), , KOLKATA

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ITA 1185/KOL/2025Status: DisposedITAT Kolkata21 May 2026AY 2024-20254 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal found that the expenses on religious activities were minimal (less than 2% of total expenditure) and that the assessee was genuinely carrying out charitable activities for the public benefit.

What were the facts?

The assessee applied for approval under Section 80G of the Income Tax Act. The CIT(Exemption) rejected the application, observing that the assessee incurred expenses on religious activities.

What were the issues?

Whether the rejection of approval under Section 80G was justified when the assessee's primary activities were charitable, despite incurring some religious expenses.

Which sections of the Income-tax Act were involved?

Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A”BENCH KOLKATA

आयकर अपील�य अ�धकरण, कोलकाता पीठ, कोलकाता IN THE INCOME TAX APPELLATE TRIBUNAL “A”BENCH KOLKATA Before Shri Rajesh Kumar, Accountant Member and Shri Pradip Kumar Choubey, Judicial Member ITA No.1185/Kol/2025 (Assessment Year: 2024-25) Ashoknagar Shriramakrishna Sangha..……..............................……….……Appellant 216/3 Ashokenagar Barasat (24 Pgn.) North, WB – 743222. [PAN: AADTA0502C] vs. CIT(Exemption), Kolkata….………..….……………………...……...…..…..Respondent Appearances by: ShriArvind Agarwal, Advocate, appeared on behalf of the appellant. Shri Praveen Kishore, Cit-DR, appeared on behalf of the Respondent. Date of concluding the hearing : April 23, 2026 Date of pronouncing the order : May 21,2026

ORDER Per Rajesh Kumar, Accountant Member: This is an appeal filed by the assessee against the order dated 27.03.2025 passed by the ld. CIT(Exemption), Kolkata rejecting the approval u/s 80G of the Income Tax Act (hereinafter the ‘Act’).

2.

The facts in brief are that the assessee filed an application on 02.09.2024 for approval u/s 80G(5)(iv)(B) in Form 10AB. The ld. CIT(E) sought certain clarifications by asking details and supporting evidences

ITA No.1185/Kol/2025 vide letter dated 08.02.2025 which the assessee replied by submitting various details on 16.02.2025. The ld. CIT(E) on perusal of the documents submitted by the assessee observed that the assessee has incurred expenses on religious activities like mandir construction work, Guru Purnima, Swamiji Tithi Puja etc. The ld. CIT(E) thereafter issued show-cause notice on 23.03.2025 seeking explanation as to why approval u/s 80G(5) should not be rejected and the same was replied by the assessee by submitting that the institutions is not meant for the benefit of any particular religion, community or caste. Finally the ld. CIT( E ) rejected the application of the assessee and hence the assessee is in appeal before us.

3.

We have heard the rival contentions. We have also perused the expenses incurred by the assessee on so called religious activities and also gone through the expenses incurred by the assessee on charitable activities. The assessee has given a comparative chart of expenditure incurred as follows:

ITA No.1185/Kol/2025

4.

Considering the above chart, we find that 0.52% in the financial year ending with 31.03.2024 , 1.30% in the financial year ending with 31.03.2023 and 1.32% in the financial year ending with 31.03.2022 were incurred for religious purposes. Therefore, in our view, the assessee can not be held to existing for religious purposes. In our opinion , the assessee is genuinely carrying charitable activities for the benefit of

ITA No.1185/Kol/2025 public at large and the approval u/s 80G(5) of the Act cannot be rejected. Therefore, we direct the ld. CIT(E) to grant registration u/s 80G(5) of the Act to the assessee.

5.

In the result, appeal of the assessee is allowed. Kolkata, the 21st May, 2026.

Sd/- Sd/- [Pradip Kumar Choubey] [Rajesh Kumar] JudicialMember Accountant Member

Dated: 21.05.2026. RS Copy of the order forwarded to: 1. Appellant - 2. Respondent - 3. CIT(A)- 4. CIT- , 5. CIT(DR),

//True copy// By order Assistant Registrar, Kolkata Benches

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