SHRI BAWA LAL JI MAHARAJ CHARITABLE SOCIETY,DHIANPUR vs. INCOME TAX OFFICER WARD-( EXEMPTION), AMRITSAR

ITA 700/ASR/2026Status: DisposedITAT Amritsar29 September 2026AY 2026-275 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal held that the matter should be restored to the file of the CIT(E) for a fresh examination. The reasoning was that subsequent to the rejection order, the CIT(E) had granted registration to the assessee under Section 12AB of the Act after examining the requisite documents. Therefore, the observations in the impugned order regarding the genuineness of the assessee's activities needed reconsideration in light of the Section 12AB registration. The Tribunal also noted that the objection regarding the absence of a dissolution clause required fresh examination, as the assessee stated the trust deed was amended to incorporate such a clause. These subsequent developments directly impacted the grounds for declining 80G approval. The CIT(E) was directed to examine the application afresh, considering the Section 12AB registration and the amended trust deed, and also to examine the objection regarding alleged benefit to another person/entity. The assessee was to be given an opportunity to furnish the amended trust deed and other required documents. The operative direction was to set aside the impugned order and restore the application to the CIT(E). No issue was expressly left undecided.

What were the facts?

The assessee, Shri Bawa Lal Ji Maharaj, filed an appeal before the Income Tax Appellate Tribunal (ITAT) against the order of the Commissioner of Income Tax (Exemptions) [CIT(E)], Chandigarh. The assessment year in question is 2026-27. The CIT(E) rejected the assessee's application for approval under Section 80G(5)(ii) of the Income Tax Act, 1961, citing that the assessee was engaged in religious activities, despite the application mentioning charitable activities. The assessee contended that the rejection was contradictory as they had already been granted registration under Section 12AB(1)(b) and had received 80G approval previously for the same objects. The amount in dispute is not explicitly stated. The procedural history involves the rejection of the 80G application by the CIT(E) and the subsequent appeal to the ITAT.

What were the issues?

1. Whether the learned CIT(Exemptions) erred in rejecting the application for approval under Section 80G(5)(ii) solely on the ground that the application form 10AB mentioned 'religious cum charitable' activities, without appreciating that the trust is engaged in charitable activities such as running a hospital, medical relief, relief to the poor, and social welfare. (Question of law and fact, relying on Section 80G(5)(ii) and Explanation 3 of the Income-tax Act). Assessee's contentions: - The rejection is contradictory and arbitrary, especially since registration under Section 12AB(1)(b) was granted after examining the genuineness of charitable activities. - The trust has been granted approval under Section 80G on earlier occasions based on the same Memorandum of Association and objects, with no material change. - The activities are genuine religious cum charitable activities, including langar, relief to the poor, and welfare activities. Revenue's contentions: - The judgment records no specific contentions for the revenue regarding this issue, other than the CIT(E)'s initial rejection order.

Which sections of the Income-tax Act were involved?

Section 80G,Section 80G(5)(ii),Section 12AB,Section 12AB(1)(b)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AMRITSAR BENCH, AMRITSAR.

Before: SH. SAKTIJIT DEY, HON’BLE & SH. GIRISH AGRAWAL, HON’BLE

Hearing: 28.09.2026

Per: GIRISH AGRAWAL, AM:

This appeal is in respect of rejection of application made by the assessee seeking approval u/s 80G(5)(ii) filed in Form 10AB. According to the ld. CIT(E), the assessee is engaged in the religious activities though in Form 10AB the assessee has mentioned the nature of activities being charitable.

2.

The ld. CIT(E) concluded that assessee is engaged in religious activities and though rejected the application made for seeking approval u/s 80G. 2 Assessment Year: 2026-27

2.

1 That the learned CIT (Exemptions) has rejecting the application for approval under section 80G (5) solely on the ground that in application form 10AB nat

The order continues below.

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