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Facts
The assessee, a charitable trust, was denied registration under section 80G(5) by the CIT(E) on the grounds that its objects were religious in nature. The CIT(E) relied on a Supreme Court decision regarding a similar case. The assessee argued that its primary objectives were educational and managing a gaushala, without discrimination.
Held
The Tribunal found that the dominant objective of the trust was to enhance the spiritual, physical, and intellectual capabilities of society without religious discrimination. The trust had not expended any amount on religious activities. Therefore, the assessee was held eligible for registration under section 80G(5).
Key Issues
Whether the objects of the assessee trust are primarily religious, thus disentitling it from registration under Section 80G(5) of the Income Tax Act?
Sections Cited
80G(5), 12A, 80G(5)(iv)(B)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, DELHI BENCH ‘F’, NEW DELHI
Before: SHRI SATBEER SINGH GODARA & SHRI NAVEEN CHANDRA
ORDER PER NAVEEN CHANDRA [A. M]: The above captioned appeal is preferred by the assessee against the order dated 29.04.2025, passed by Learned Commissioner of Income Tax(Exemption), Chandigargh, (hereinafter referred to as ‘ld.
CIT(E)), for Assessment Year 2025-26.
The short issue in this case is denial of registration by the ld. CIT(E) under section 80G(5)(iv)(B) of the Act. The ld. CIT(E) held that the assessee was granted registration under section 12A as religious entity and the object as mentioned in Form 10AB, the assessee has Acharya Mahamandleshwar Swami Ganeshanand Maharaj Dharmarth Trust mention religious and education entity. The Ld. CIT(E) following the decision of the Hon’ble Supreme Court in the case of Upper Ganges Sugar Mills Ltd. vs CIT 93 taxmann.com 645 (SC) held that the many of the object of the institutions was of religious nature and therefore denied registration under section 80G(5) of the Act.
It is stated by the ld. AR that the applicant trust, which was created by Swami Ganeshanand Giriji Maharaj, is only for managing educational institution and gaushala at Uchana Dist. Jind, Haryana.
Though, Swami Ganeshanand Giriji Maharaj has created many trusts and societies for the management of different institutions all over India, the objection of it being religious, does not relate to the present applicant trust as all the trust are different entities.
The ld AR further submitted that the object of the trust would show that it does not discriminate between religion, sex, gender and community etc. and is working towards educational intelligence and physical development of every person. The dominant objective is towards building and enhancement of spiritual, physical and intellectual capabilities of the entire society. The other objects are for women education, medical help for all population, establishment and maintenance of gaushala, establishment and maintenance of elderly people, etc. The ld AR vehemently stated that the Trust is not a Page 2 of 4
Per contra the ld DR relied on the orders of the CIT(E).
We find that objects of the assessee do not reflect its purpose having a religious character either the whole or substantially the whole. There is no purpose in the objects which would render and make the institution either wholly or substantially the whole, of a religious nature. We find that the dominant objective of the Trust is to enhance the spiritual, physical and intellectual capabilities of the entire society, without discriminating in caste, creed or religion. We further find from the audited financial statements that the trust has not expended any amount towards any religious activity since its creation on 15.05.2007. We are of the considered view therefore, that the objectives of the Trust would not be covered under Explanation 3 of section 80G and the decision of the hon’ble Supreme Court in the case of Upper Ganges Sugar Mills Ltd (supra) is inapplicable. We therefore hold that the assessee is eligible for registration under section 80G(5) of the Act. We order accordingly. Grounds are allowed.