SHREE ALKAPURI STHANKVASI JAIN SANGH,VADODARA vs. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

ITA 1380/AHD/2026Status: DisposedITAT Ahmedabad29 September 20265 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal held that the appeal was barred by limitation due to the admitted delay and the failure of the assessee to file an application for condonation of delay, despite opportunities. The Tribunal found no reason to condone the delay and accordingly dismissed the appeal on this procedural ground. Even on merits, the Tribunal found no reason to interfere with the findings of the Commissioner of Income Tax (Exemption). The Commissioner had correctly observed that the objects of the trust were predominantly religious, and the expenses incurred on religious activities exceeded the 5% limit stipulated in Section 80G(5B) and Explanation 3 to Section 80G. Therefore, the assessee violated the main condition of Section 80G(5) of the Act, which requires the trust to be set up solely for charitable purposes. The application for registration under Section 80G was correctly rejected. The Tribunal did not expressly leave any issue undecided.

What were the facts?

The assessee, Shree Alkapuri Sthankvasi Jain Sangh, filed an appeal against the order of the Commissioner of Income Tax (Exemption), Ahmedabad, who denied registration under Section 80G of the Income Tax Act, 1961. The appeal was filed with a delay, and the assessee did not submit an application for condonation of delay, despite admitting the delay. The assessee also sought repeated adjournments during the hearing. The Commissioner had given the assessee opportunities to make submissions regarding its application for registration. The Commissioner examined the trust deed, the objects and activities of the assessee, and the expenses incurred. The Commissioner noted that the main objects of the trust were religious in nature, and the expenses incurred on religious activities exceeded the permissible limit under Section 80G(5B) and Explanation 3 to Section 80G.

What were the issues?

1. Whether the appeal filed by the assessee is barred by limitation, considering the admitted delay and the absence of a condonation application. 2. Whether the assessee's trust is established solely for charitable purposes as required by Section 80G(5) of the Income Tax Act, 1961, given that its objects and activities are predominantly religious. Assessee's contentions: The assessee admitted to a delay in filing the appeal and sought adjournments. No specific arguments were recorded for the merits of the case. The assessee's reply to the CIT(E) indicated that some objects were for the benefit of the Jain religion and that they had undertaken charitable activities like medical facilities and food supply in Vadodara, with activities related to Section 80G starting from November 2023. They attached a self-certified copy of the Trust Deed. Revenue's contentions: The revenue, through the CIT(E), argued that the trust's objects were purely religious or religious-cum-charitable, violating the main condition of Section 80G(5) of the Act. The revenue also noted that the religious expenditure incurred by the assessee exceeded the 5% limit prescribed under Section 80G(5B) and Explanation 3 to Section 80G.

Which sections of the Income-tax Act were involved?

Section 80G,Section 80G(5),Section 80G(5B)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “A” BENCH

Before: DR. BRR Kumar & Shri Tapas Ram Misra

For Appellant: Shri Jignesh Parikh, A.R
For Respondent: Shri Kiran Unavekar, CIT-DR

PER TAPAS RAM MISRA, JUDICIAL MEMBER:

This appeal is filed by the Assessee as against the order passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying registration under section 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

2.

On perusal of appeal documents, it is seen that there is admittedly a delay in filing this appeal against the order of the Ld. CIT(E). The assessee has however not submitted any application for condonation of delay despite admitting to the delay in the Memo of appeal itself. T

The order continues below.

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