SANSKRUTI EDUCATION TRUST,AMRELI vs. THE CIT(EXEMPTION), AHMEDABAD
Income Tax Appellate Tribunal, “A” BENCH, AHMEDABAD
Before: SHRI SIDDHARTHA NAUTIYAL & SHRI NARENDRA PRASAD SINHA
PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER:
This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), (in short “Ld.
CIT(E)”), Ahmedabad vide order dated 27.12.2024. 2. The assessee has taken the following grounds of appeal:
“1. The learned CIT (Exemption), Ahmedabad has erred in not granting approval u/s 80G (5) of the act on the ground that objects of the trust are religious in nature.
The trust runs school and colleges and students from all religion and faiths take education.
On the facts and in the circumstances of the case the trust is not a religious trust and approval u/s 80G (5) be granted to the trust.
The learned CIT (Exemption), Ahmedabad has erred in not referring the Audit Reports for last 3 years furnished by the trust along with its application for approval u/s 80G(5) of the act. Where it can be already observed that expense on prayer temple is below the prescribed limit of 5% as per act. On the facts and in the circumstances of the case approval u/s 80G(5) be granted to the trust. Asst. Year –NA - 2–
The learned CIT (Exemption), has erred in deciding what is the religious activities and what is non-religious activities. After all the trust is engaged in providing education to all without discrimination. Students from all faith take education. Prayer temple cannot be wholly religious Hindu Temple. On the facts and in the circumstances of the case approval u/s 80G(5) be granted to the trust in the interest of public at large and its needs of education.
The appellant may be permitted to alter, to modify, to rectify, to withdraw any grounds of appeal duly raised and to raise new grounds of appeal during the assessment proceedings.”
The brief facts of the case are that the assessee trust had filed an application in Form No. 10AB before the learned Commissioner of Income Tax (Exemptions) seeking approval under section 80G(5) of the Income- tax Act, 1961 ("the Act"). During the course of examination of the application, the learned CIT (Exemptions) issued a show-cause notice dated 12.12.2024 requiring the assessee to explain certain issues arising from the objects of the trust as contained in the trust deed. In the said show- cause notice, the CIT (Exemptions) observed that one of the objects of the assessee trust related to establishing and maintaining a knowledge centre and prayer temple for removal of ignorance and superstition in society, which, according to the CIT (Exemptions), indicated that the trust had objects of a religious nature. The CIT (Exemptions) further noted that for the purpose of approval under section 80G(5) of the Act, the institution must be established solely for charitable purposes and the presence of even a single religious object would render the trust ineligible for approval under section 80G of the Act. In the show-cause notice, the CIT (Exemptions) also advised the assessee that in case it intended to amend or alter the impugned objects so as to comply with the provisions of section 80G(5) of the Act, the assessee could file an affidavit along with a Sanskruti Education Trust vs. CIT(E) Asst. Year –NA - 3–
resolution of the authorized persons and proof of application made to the Charity Commissioner/