SHRI DIGAMBAR JAIN SIDDHA KSHETRA KUNDALGIRI,DAMOH vs. ANOOP SINGH, CIT(E), BHOPAL

ITA 792/IND/2026Status: DisposedITAT Indore30 September 20267 pages
AI SummaryRemanded

What were the facts?

The assessee, Shri Digambar Jain Siddha Kshetra Kundalgiri Trust, filed an application for renewal of registration/approval under section 80G(5)(ii) of the Income-tax Act, 1961. The Commissioner of Income-tax (Exemption), Bhopal (CIT(E)), rejected the application on March 30, 2026, noting that the trust's objects were purely religious. The CIT(E) acknowledged that the trust's registration under section 12AB was not being declined, but the dispute centered on whether approval under section 80G could be granted to a religious entity. The assessee appealed this order to the Income Tax Appellate Tribunal (ITAT), Indore Bench.

What did the Tribunal hold?

The Tribunal noted that registration under section 12AB had been granted to the assessee. The CIT(E) had rejected the renewal/approval under section 80G(5)(ii) primarily because the trust was considered purely religious. However, considering the contentions raised by the assessee's counsel, the written submissions, the paper book, and the additional ground raised, the Tribunal was of the view that in the interest of justice and fair play, the assessee should be given another opportunity to explain its claim. The Tribunal decided to set aside the impugned order and restore the matter to the file of the CIT(E) for de novo consideration of the assessee's application for renewal of registration under section 80G(5)(ii). The CIT(E) is to independently examine the matter based on all available material and facts submitted by the assessee, provide a reasonable opportunity of being heard, and pass a fresh speaking order in accordance with the law. The Tribunal expressly left undecided the specific findings on the grounds of appeal, as the matter was remanded for fresh adjudication.

What were the issues?

1. Whether the learned CIT(E) erred in fact, law, and circumstances by holding that the trust is engaged only in religious activities, when it works for charitable objects for the public at large? (Question of fact and law) 2. Whether the learned CIT(E) erred in fact, law, and circumstances by not considering that the temple construction is for preserving a 1500-year-old monument of archaeological interest, confirmed by government agencies and courts, including the High Court of MP and the Supreme Court of India? (Question of fact and law) 3. Whether the learned CIT(E) erred in fact, law, and circumstances by holding the assessee as a wholly religious entity, when expenses on religious activities are not more than 1 percent? (Question of fact and law) Assessee's Contentions: - The trust's objects include charitable purposes as defined under section 2(15) of the Act, specifically preservation of monuments of artistic or historic interest and advancement of objects of general public utility. - The trust does not violate section 80G(5B) read with explanation 3 of section 80G, as it spends less than 5% of its total income on religious purposes (approximately 1%). - The assessee also raised an additional ground that section 80G(5B) overrides section 80G(5)(ii) of the Act. Revenue's Contentions: - The learned DR relied on the impugned order, stating the trust is religious in nature and not charitable, thus the CIT(E)'s order should be confirmed. - The revenue emphasized that expenses debited to the income and expenditure account were religious in nature, amounting to approximately 7.90% of the total income.

Which sections of the Income-tax Act were involved?

Section 80G(5)(ii),Section 80G(5B),Section 2(15),Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, INDORE BENCH, INDORE

Before: SHRI PARESH M. JOSHI & SHRI ARVIND SONI

For Appellant: Shri Manish Koushal, AR
For Respondent: Shri Anup Singh, CIT- DR
Hearing: 08.09.2026Pronounced: 30.09.2026

PER ARVIND SONI, ACCOUNTANT MEMBER:

This appeal filed by the assessee is directed against the impugned order dated 30.03.2026 passed by the learned Commissioner of Income-tax (Exemption), Bhopal ["CIT(E)"], whereby the application of the assessee for renewal of registration/approval under section 80G(5)(ii) of the Income-tax Act, 1961 ("the Act”) dated 30-03-2026, for registration was rejected.

Shri Digambar Jain Siddha Kshetra Kundalgiri Trust

2.

The brief facts of the case are that the assessee is a public

charitable trust. Ld. CIT(E) noted that the objects of the trust are religious in nature i.e. to construct/maintain/renovate the temple and

The order continues below.

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