SHRI KSHETRA RAMTEK TELI SAMAJ DHARAMSHALA,NAGPUR vs. CIT EXEMPTION , PUNE

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ITA 438/NAG/2025Status: DisposedITAT Nagpur16 June 20265 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that maintaining a Dharamshala cannot be considered a religious activity unless there are restrictions on entry based on religious order. The Tribunal found that many expenses classified as religious by the CIT(E) were actually general expenses for the trust's activities.

What were the facts?

The assessee, a charitable trust, applied for regular approval under Section 80G(5) to claim deductions for donations. The CIT(E) rejected the application, concluding that the trust's activities were primarily religious in nature based on its financial statements.

What were the issues?

Whether the activities of maintaining a Dharamshala and related expenditures constitute religious activities, thereby disqualifying the trust for 80G approval.

Which sections of the Income-tax Act were involved?

Section 80G(5),Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, NAGPUR BENCH :: NAGPUR

For Appellant: Shri Kapil Hirani, Advocate
For Respondent: Shri Pankaj Kumar, CIT-DR
Hearing: 10.06.2026Pronounced: 16.06.2026

IN THE INCOME TAX APPELLATE TRIBUNAL NAGPUR BENCH :: NAGPUR BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER & SHRI KHETTRA MOHAN ROY, ACCOUNTANT MEMBER ITA No. 438/NAG/2025 Shri Kshetra Ramtek Teli CIT (Exemption), Pune. Samaj Dharamshala, vs Dharamshala Shri Santaji Smruti Mandi, Hanuman Chowk, Chhaprunagar, Nagpur-440 008 PAN : AAGTS 7803 P Assessee Revenue Assessee by : Shri Kapil Hirani, Advocate Revenue by : Shri Pankaj Kumar, CIT-DR Date of hearing : 10.06.2026 Date of pronouncement : 16.06.2026 O R D E R PER ANUBHAV SHARMA, JM:

This appeal filed by the assessee is directed against the order of Learned Commissioner of Income Tax (Exemption), Pune, (for short, “CIT(E)”), dated 17/06/2025; whereby application for regular approval u/s. 80G(5) has been rejected.

2.

Heard and perused the record. Appellant is a charitable trust registered u/s. 12A of the Act and has

ITA No. 438/NAG/2025 (Shri Kshetra Ramtek Teli Samaj Dharamshala) claimed that it is providing free accommodation to the pilgrims in their ‘Dharmashala’ at Ramtek and also other charitable activities including providing scholarship to the meritorious students. Appellant applied for registration u/s. 80G(5)(iv) by filing Form No.10B before the Ld. Prescribed Authority-CIT(E) and the application was rejected vide impugned order dated 17.06.2025; whereby Ld.Prescribed Authority-CIT(E) has concluded that assessee is engaged in religious activities and out of total receipts of Rs.28.22 Lakhs, assessee had made expenditure on religious activities amounting to Rs. 1.45 Lakhs which allegedly amounts to 5.16% of the total income of the respective financial year and further holding no charitable activities have not been carried out by the trust.

3.

Learned counsel for the assessee has submitted that it had maintained Dharamshala, same cannot be said to be a religious activity and had drawn our attention to the expenditure reflected in the financial statement on account of what Ld. Prescribed Authority-CIT(E) calls religious expenses to submit that expenditure like preparation of food, decoration, catering expenses, donation, purchase of mementos and other sundry purchases have also been to be considered as religious and

ITA No. 438/NAG/2025 (Shri Kshetra Ramtek Teli Samaj Dharamshala) if those are excluded the balance religious expenditure would only be 22,945/-.

4.

Ld. DR heavily relied the impugned order and the findings therein to submit that Ld. Prescribed Authority- CIT(E) had examined the bills and vouchers in the nature of activities and on the basis of tangible material concluded that the assessee is engaged in religious activities and no charitable activities have been carried out by the Trust.

5.

Giving thoughtful consideration to the material on record and the submissions, we find from the impugned order that Ld. Prescribed Authority-CIT(E) has drawn all its conclusions on the basis of financial statement under the head “expenditure on object of the Trust”, Ld.Prescribed Authority-CIT(E) has held that on verification of the financial statement, it is seen that activities are religious in nature. However, what religious activities pertaining to particular religious, order are run have not been indicated at all. Ld. Prescribed Authority- CIT(E) mentions of expenditure on religious activities amounting to Rs. 1.45 Lakhs which learned counsel has demonstrated is factually incorrect as there are numerous items for which the vouchers were examined and the same

ITA No. 438/NAG/2025 (Shri Kshetra Ramtek Teli Samaj Dharamshala) are in regard to expenses in the nature of funds like Sneha Sammelan, catering expenses, distribution of mementos, hording print expenses, purchase of cloth objects, shawl, flower, garlands, hall clean, and by no stretch of imagination same can be considered to be expenses of religious nature only because the trust is operating Dharamshala near Hindu religious site, that does not make the activities of the trust are religious.

6.

In any case, maintaining Dharamshala cannot be alleged to be religious activity unless it is established that there was restriction of entry on the basis of any religious order.

7.

Furthermore, based upon the fact of demonstration of non-religious expenditure for FY 2023-24, we are of the considered view that assessee was otherwise entitled to the benefit of sub-clause (5)(B) of section 80G.

8.

In the light of aforesaid, we are inclined to sustain the grounds. Appeal is allowed. Impugned findings of the Ld. Prescribed Authority-CIT(E) are set aside. Ld. Prescribed Authority-CIT(E) is directed to issue the relevant Form 10AD in favour of the assessee.

ITA No. 438/NAG/2025 (Shri Kshetra Ramtek Teli Samaj Dharamshala) 9. In the result, appeal filed by the assessee stands allowed.

Order pronounced in open Court on 16.06.2026

sd/- sd/- ANUBHAV SHARMA KHETTRA MOHAN ROY ACCOUNTANT MEMBER JUDICIAL MEMBER

Nagpur: Dated: 16/06/2026 vr/-

Copy to: 1. The Assessee 2. The Revenue 3. The Pr.CIT concerned. 4. The DR, ITAT, Nagpur 5. Guard file. By order Vukkem Digitally signed by Vukkem Rambabu Rambabu Date: 2026.06.17 10:13:21 +05'30' Senior Private Secretary ITAT, Nagpur

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