VYANKTESH MANDIR TRUST COMMITTEE,INDORE vs. ITO EXEMPTION, EXEMPTION WARD INDORE

ITA 823/IND/2026Status: DisposedITAT Indore30 September 202650 pages
AI SummaryRemanded

What were the facts?

The assessee, Vyanktesh Mandir Trust Committee, filed an application for renewal of approval under Section 80G of the Income Tax Act, 1961, for AY NA. The application was for renewal of approval under Section 80G(5)(ii), which requires that the institution's constitution or rules do not allow for the transfer of income or assets for purposes other than charitable. The assessee's activities were described as religious cum charitable, with the trust constituted on September 10, 1951. The Commissioner of Income Tax (Exemption) issued a show-cause notice on March 9, 2026, proposing to reject the application, citing that the trust's activities appeared predominantly religious, including running and maintenance of a temple and conducting religious ceremonies. The assessee replied on March 13, 2026, detailing charitable activities like running a Gaushala, Sanskrit Paathshala, Homeopathy Aushadhalaya, and Annakshetra, all open to the general public. The assessee also clarified that 'Rath Yatra' expenses included arrangements for charitable functions and that purely religious rituals constituted a small portion of total expenditure.

What did the Tribunal hold?

The Tribunal held that the Commissioner of Income Tax (Exemption) had not properly examined the submissions and documentary evidence provided by the assessee before issuing the impugned order. The Commissioner ought to have thoroughly scrutinized the assessee's replies and supporting materials to determine whether the trust's activities were charitable or religious. The Tribunal noted that the Commissioner's order simply stated that the reply dated March 19, 2026, was not acceptable, without providing specific reasons. The Tribunal emphasized that the Commissioner, discharging a quasi-judicial function, must pass a well-reasoned and speaking order, analyzing the material ingredients of Section 80G(5)(ii) based on the assessee's evidence. It was highlighted that an empirical analysis of financials, on-spot verification, and consideration of judicial precedents are crucial tools for adjudicating whether the trust's purpose is predominantly charitable or religious. The Tribunal also pointed out that the assessee is expected to provide complete disclosures, including details of charitable activities, and that the Commissioner should provide an opportunity for personal hearing. Consequently, the Tribunal set aside the impugned order and remanded the matter back to the Commissioner for a fresh de novo assessment.

What were the issues?

1. Whether the Commissioner of Income Tax (Exemption) erred in proposing to reject the application for renewal of approval under Section 80G(5)(ii) of the Income Tax Act, 1961, solely on the grounds that the assessee's activities are predominantly religious in nature? Assessee's Contention: The assessee argued that it conducts various charitable activities for the benefit of the general public, including running a Gaushala, Sanskrit Paathshala, Homeopathy Aushadhalaya, and Annakshetra, which are open to all without restriction. They contended that expenses under 'Rath Yatra' primarily relate to charitable functions and that purely religious rituals constitute a small portion of the total expenditure. The existence of a temple is incidental to the predominantly charitable nature of its activities. Revenue's Contention: The revenue, through the Commissioner of Income Tax (Exemption), proposed to reject the application on the grounds that the assessee is primarily engaged in activities related to running and maintenance of a temple and conducting religious ceremonies and rituals, which may not qualify for approval under Section 80G as per the provisions of Section 80G(5) of the Act, read with applicable rules, if activities are predominantly religious in nature.

Which sections of the Income-tax Act were involved?

Section 253,Section 80G(5)(ii),Section 80G(5)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI PARESH M JOSHI

For Appellant: CA & Sh
For Respondent: Shri Anup Singh, CIT DR
Hearing: 23.09.2026Pronounced: 30.09.2026

Per Paresh M Joshi, J.M:

This is an appeal filed by the Assessee trust under section 253 of the income tax Act 1961,[ hereinafter referred to as the Act for the sake of brevity] before this tribunal, as & by way of an appeal .The Assessee is aggrieved by the order

bearing No:-ITBA/EXM/F/EXM45/2025-26/1087914995(1)

dated 25.03.2026, which is hereinafter referred to as the “Impugned order”.

VYANKTESH MANDIR TRUST COMMITTEE ITA No. 823/Ind/2026 - A.Y. NA

2.

Factual Matrix

2.

1 That the assessee trust had filed an application seeking the “Renewal of approval” under section 80G of the Act 1961. The relevant Form no: - 10AB dated 30.09.2025 is placed on record at paper bo

The order continues below.

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