MUSLIM FOUNDATION FOR RENAISSANCE KOLHAPUR,KOLHAPUR vs. CIT(EXEMPTION), PUNE, PUNE

ITA 1921/PUN/2026Status: DisposedITAT Pune13 October 2026AY 2026-275 pages
AI SummaryPartly Allowed

What did the Tribunal hold?

The Tribunal held that the CIT(Exemption) rejected the assessee's application for approval under Section 80G based on the observation that expenditure on religious activities exceeded 5% of total income. The assessee's counsel presented an auditor's certificate asserting that no expenses were incurred on religious activities for the relevant financial years. Considering the conflicting submissions and the auditor's certificate, the Tribunal found it appropriate to restore the issue to the file of the CIT(Exemption) for a fresh examination of the details and a decision in accordance with facts and law. The CIT(Exemption) was directed to provide the assessee with an adequate opportunity of being heard. The grounds raised by the assessee were allowed for statistical purposes.

What were the facts?

The assessee, Muslim Foundation for Renaissance, filed an appeal against the order dated 21.03.2026 passed by the CIT(Exemption), Pune. The CIT(Exemption) had rejected the assessee's application for grant of approval under Section 80G of the Income Tax Act, 1961. The sole ground for rejection was that the assessee had spent more than 5% of its total receipts on religious activities. The assessee's counsel presented an auditor's certificate stating that no amount was spent on religious activities. The assessee proposed that the matter be restored to the CIT(Exemption) for verification of details, which the revenue's counsel did not object to, relying on the CIT(Exemption)'s order.

What were the issues?

1. Whether the Tribunal should restore the matter to the file of the CIT(Exemption) for fresh adjudication on the grant of approval under Section 80G of the Income Tax Act, 1961, given the dispute regarding expenditure on religious activities. Assessee's contentions: The assessee argued that the CIT(Exemption) rejected the application solely on the ground of expenditure on religious activities exceeding 5% of total receipts. The assessee submitted an auditor's certificate confirming no expenditure was incurred on religious activities for financial years 2022-23 to 2024-25. The assessee agreed to a remand to the CIT(Exemption) for verification and decision. Revenue's contentions: The Revenue relied on the order of the CIT(Exemption).

Which sections of the Income-tax Act were involved?

Section 80G

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, PUNE BENCH “B”, PUNE

For Appellant: CA Ms. Chaitee Londhe
For Respondent: Shri Amit Bobde, CIT-DR

PER R.K. PANDA, VP:

This appeal filed by the assessee is directed against the order dated 21.03.2026 of the Ld. CIT(Exemption), Pune rejecting the application for grant of approval u/s 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

2.

The Ld. Counsel for the assessee at the outset submitted that the Ld. CIT(E) denied the grant of approval u/s 80G of the Act on the ground that the assessee has spent more than 5% of the total receipts towards religious activities. The Ld. Counsel for the assessee filed a certificate from the Auditor certifying that no 2 amount has been spent for religious activities. He accordingly submitted that since the only objection raised by the Ld. CIT(E) for refusing

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 80G

All 6,482 judgments and leading authorities on Section 80G →

Recent GST High Court judgments

Search GST case law →