SHREE MAHESHWARI SAMAJ BHAVAN AND COMMUNITY HALL TRUST,PALANPUR vs. THE CIT(EXEMPTION), AHMEDABAD

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ITA 575/AHD/2026Status: DisposedITAT Ahmedabad24 June 20264 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal set aside the CIT(E)'s order and remanded the matter back, directing the CIT(E) to grant the assessee another opportunity to provide evidence regarding the public benefit of its activities and expenditure.

What were the facts?

The assessee trust applied for approval under Section 80G(5) of the Income Tax Act. The CIT(E) rejected the application, stating the trust's activities were for the benefit of a specific community and not the public at large, and the assessee failed to provide compliance.

What were the issues?

Whether the trust's activities were for the benefit of the public at large, and whether the assessee was given sufficient opportunity to prove this.

Which sections of the Income-tax Act were involved?

Section 80G(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD

Before: SHRI SANJAY GARG & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Kunal Shangvi, AR
For Respondent: Shri Kiran Unavekar, CIT-DR
Hearing: 15.06.2026Pronounced: 24.06.2026

PER NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER:

This appeal is filed by the assessee against the order of Commissioner of Income Tax (Exemption), Ahmedabad, [in short “CIT(E)”] dated 31.12.2025 in the proceeding u/s 80G(5) of the Income Tax Act [hereinafter referred as “the Act”].

2.

The brief facts of the case are that the assessee had filed an application in Form No. 10AB for approval u/s. 80G(5)(iv)B) of the Act. The Ld. CIT(E) noticed that the Trust was constituted for the benefit of

ITA No. 575Ahd/2026 Shree Maheshwari Samaj Bhavan and Community Hall Trust Vs. CIT (E) 2 members/families of Maheshwari Samaj/Community only and was not for the benefit of public at large. The Ld. CIT(E) had issued notice to the assessee and required it to explain as to how the activities of the assessee were charitable in nature for the benefit of public at large. However, no compliance was made by the assessee in spite of three opportunities provided to it. Therefore, he had rejected the application of the assessee.

3.

Aggrieved with the order of the Ld. CIT(E), the assessee is in appeal before us. The following grounds have been taken in this appeal:

1.

On the facts and in the circumstances of the case as well as law on the subject, the Ld. CIT(E) has erred in denying the registration u/s. 80G(5)(iii) of the IT Act, 1961, without appreciating that the appellant’s object which comes into the ambit of charitable activities. 2. On the facts and circumstances of the case, the object of Trust is not restricted to particular religious community or caste ad his is for the public at large and there is no violation of clause (iii) of sub-section (5) of Section 80G. 3. The appellant therefore prays that the application filed in Form No. 10AB u/s. 80G(5) of the IT Act, and Provisional Registration may be granted looking to the merits of the case. 4. The appellant humbly craves leave to add, alter or delete all or any of the grounds either before or in the course of hearing of the appeal.

4.

Shri Kunal Shangvi, the Ld. AR of the assessee submitted that no compliance could be made by the assessee before the Ld. CIT(E) and the fact that the activities of the assessee were not confined to the members of Maheshwari Samaj but for the benefit of general public, could not be properly explained before him. The Ld. AR submitted that the assessee has also modified the object of the Trust and the reference of Maheshwari Samaj as given in the object has since been removed. He further submitted that the activities of the assessee trust are for the benefit of the general public. The Ld. AR requested that the matter may be set aside to

ITA No. 575Ahd/2026 Shree Maheshwari Samaj Bhavan and Community Hall Trust Vs. CIT (E) 3 the file of the Ld. CIT(E) with a direction to allow another opportunity to produce evidences before him in order to establish that the activities of the trust were for the benefit of general public and not confined to Maheshwari community only.

5.

Per contra, Shri Kiran Unavekar, the Ld. CIT-DR had no objection if the matter was set aside to the file of the Ld. CIT(E) for allowing another opportunity to the assessee.

6.

We have considered the request of the assessee. It is found that the Ld. CIT(E) had primarily rejected the application, considering the object of the assessee which was as under:

“To construct Vadi Bhavan for Maheshwari Samaj, Palanpur and to make arrangement regarding the same. To spread education in the Samaj and to provide Vedic Benefits to maintain well-being among the people”.

The only object of the assessee was to construct Vadi Bhavan for Maheshwari Samaj. Before the Ld. CIT(E) no details of the expenditure towards referred object along with the list of beneficiaries of the Vadi Bavan was provided. According to the assessee, the Vadi Bhavan constructed by Maheshwari Samaj was for the benefit of public in general. The assessee has also filed a copy of the revised object as per which the reference of Maheshwari Samaj for the work of construction of Vadi Bhavan has been omitted. Considering the submission of the assessee that its activities are for the benefit of general public at large, we deem it proper to set aside the matter to the file of the Ld. CIT(E) with a direction to allow another opportunity to the assessee to provide evidences in respect of beneficiaries who have utilized the Vadi Bhavan/Community

ITA No. 575Ahd/2026 Shree Maheshwari Samaj Bhavan and Community Hall Trust Vs. CIT (E) 4

hall constructed by Maheshwari Samaj. The assessee is also directed to make compliance before the Ld. CIT(E) and produce the evidence in respect of expenditure incurred by it as well as the list of beneficiaries who have utilized the benefit of community hall. The Ld. CIT(E) may, thereafter, re-adjudicate the matter as per law.

7.

In the result, the appeal of the assessee is allowed for statistical purpose.

Order pronounced in the Court on 24/06/2026 at Ahmedabad.

Sd/- Sd/- (SANJAY GARG) (NARENDRA PRASAD SINHA) Judicial Member Accountant Member Dated – 24th June, 2026 Neelesh, Sr. P.S (True Copy) आदेश आदेश क� आदेश आदेश क� क� �ितिलिप क� �ितिलिप �ितिलिप अ�ेिषत �ितिलिप अ�ेिषत अ�ेिषत/Copy of the Order forwarded to : अ�ेिषत 1. अपीलाथ� / The Appellant 2. ��यथ� / The Respondent. 3. संबंिधत आयकर आयु� / Concerned CIT 4. आयकर आयु�(अपील) / The CIT(A) 5. िवभागीय �ितिनिध, आयकर अपीलीय अिधकरण / DR, ITAT, 6. गाड� फाईल /Guard file. आदेशानुसार/BY ORDER, आदेशानुसार आदेशानुसार आदेशानुसार पंजीकार (Dy./Asstt.Registrar) उप उप/सहायक उप उप सहायक सहायक पंजीकार सहायक पंजीकार पंजीकार आयकर आयकर अपीलीय आयकर आयकर अपीलीय अपीलीय अिधकरण अपीलीय अिधकरण अिधकरण, अहमदाबाद अिधकरण अहमदाबाद अहमदाबाद / ITAT, Ahmedabad अहमदाबाद

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