SHRI SANT GAJANAN MAHARAJ PATTEKAR CHARITABLE TRUST,THANE vs. CIT EXEMPTION, PUNE, PUNE
IN THE INCOME TAX APPELLATE TRIBUNAL
PUNE BENCH “B”, PUNE
BEFORE SHRI MANISH BORAD, ACCOUNTANT MEMBER
AND SHRI VINAY BHAMORE, JUDICIAL MEMBER
आयकर अपील सं. / ITA No.170/PUN/2025
Shri Sant Gajanan Maharaj
Pattekar Charitable Trust,
39 Teli House, Edulji Road,
Tembhi Naka,
Thane- 400601. PAN : AANTS8908A
Vs. CIT, Exemption, Pune.
Appellant
Respondent
आदेश / ORDER
PER VINAY BHAMORE, JM:
This appeal filed by the assessee is directed against the order dated 26.12.2024 passed by Ld. CIT, Exemption, Pune rejecting the application for registration u/s 80G(5) of the IT Act.
2. Facts of the case, in brief, are, that the assessee filed its application for registration in Form No.10AB under clause (iii) of first proviso to sub-section (5) of section 80G of the IT Act on 21.06.2024. With a view to verify the genuineness of activities of Assessee by : Smt. Deepa Khare
Revenue by : Shri Amit Bobde
Date of hearing
: 21.08.2025
Date of pronouncement : 21.08.2025
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the assessee and fulfilment of conditions laid down in clause (i) to (v) of section 80G(5) of the IT Act, a notice was issued through
ITBA portal on 18.07.2024 requesting the assessee to upload certain information/clarification on or before 06.08.2024. In reply to the said notice, the desired information was furnished by the assessee.
On verification of the information furnished by the assessee, Ld.
CIT, Exemption, Pune found certain discrepancies, therefore, issued another notice on 17.12.2024 and asked the assessee to furnish various other details. Not being satisfied with the explanation furnished by the assessee in response to notice dated 17.12.2024,
Ld. CIT, Exemption, Pune rejected the application for approval u/s 80G(5) of the IT Act by observing as under :-
“7. The assessee was requested to show cause as to why the application should not be rejected and why the approval granted under section 80G(5) of the Income Tax Act, 1961 should not be cancelled.
The assessee was also given opportunity of being heard vide the said notice. The assessee was specifically informed that in the event of failure to comply by the due date, the application shall be liable to be rejected and the approval shall also be liable to be cancelled. The compliance to the said notice was due on 20/12/2024. The notice was duly served on the assessee through e-portal and email.
8. The assessee furnished its compliance on 19/12/2024. It contended that the trust's activities were not aimed at any specific caste, creed, community, or religion but focused on spiritual and societal upliftment as a whole and that none of the trust's objectives are exclusively or substantially religious, as per Explanation 3 of Section 80G. The assessee further contended that the provisions of sec.
80G(5B), permits religious expenditure up to 5% of the total income in a previous year without disqualifying the trust from Section 80G benefits. On verification of the same, it is noticed that the assessee has itself confirmed that the trust has carried out religious activities.
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Further, the assessee has also given the bifurcation for F, Y. 2022-23
and contended that the expenses shown as religious expenses were grouped wrongly under religious heading. The contention of the assessee is duly considered but the same was not found to be acceptable. The assessee has submitted the audited financial statements, alongwith its enclosure/ schedules, duly signed and stamped by the trustees and the Chartered Accountant wherein the expenses have been disclosed as religious expenses.
9. In light of the above, it is reveals that the assessee has carried out religious activities, which is more than the prescribed limit of 5% of the total income. Therefore, the conditions laid down u/s. 80G(5)(ii) read with section 80G(5B) of the Act are not fulfilled. Hence, the request for approval u/s 80G(5) (vi) of the Income-tax Act, 1961 cannot be accepted.
10. In view of the above, the application filed by the assessee is hereby rejected and the provisional approval granted on 02/10/2021
under clause (iv) for first proviso to section 80G(5) of the Income Tax
Act, 1961 is hereby cancelled.”
It is this above order against which the assessee is in appeal before this Tribunal. 4. Ld. AR appearing from side of the assessee submitted before us that the order passed by Ld. CIT, Exemption, Pune is unjustified. Ld. AR submitted before us that if Ld. CIT, Exemption, Pune was not satisfied with the reply of the assessee trust he should have had provided one more opportunity to the assessee so that the assessee can produce further evidences in support of its claim. Accordingly, Ld. AR requested before the bench to provide one more opportunity to the assessee to substantiate its claim before Ld. CIT, Exemption, Pune. 4 5. Ld. DR appearing from side of the Revenue relied on the order passed by Ld. CIT, Exemption, Pune, & requested to confirm the same. 6. In this regard, we find that admittedly the assessee was registered u/s 80G & 12AA since long i.e. way back from the year 2017. We further find that the application for approval u/s 80G(5) was rejected by Ld. CIT, Exemption, Pune on the ground that the expenditure relating to religious activities are more than the prescribed limit of 5% of the total income. In this regard, it was the contention of Ld. AR of the assessee that the expenditure shown as religious expenses were wrongly grouped under religious heading & if one more opportunity is provided to the assessee he is in a position to substantiate this ground before Ld. CIT, Exemption, Pune. Considering the totality of the facts of the case & also in the interest of justice, we deem it appropriate to set-aside the order passed by Ld, CIT, Exemption, Pune & remand the matter back to his file to decide the issue a fresh as per fact & the law after providing reasonable opportunity of hearing to the assessee. The assessee is also hereby directed to comply with the notices issued by Ld. CIT, Exemption, Pune and produce requisite documents/information/ evidences in support of its contention that 5 the expenditure related to religious activities is less than 5% of the total income. Thus, the grounds of appeal raised by the assessee are partly allowed. 7. In the result, the appeal filed by the assessee is partly allowed for statistical purposes. Order pronounced on 21st day of August, 2025. (MANISH BORAD) JUDICIAL MEMBER
पुणे / Pune; ᳰदनांक / Dated : 21st August, 2025. Sujeet
आदेश कᳱ ᮧितिलिप अᮕेिषत / Copy of the Order forwarded to :
1. अपीलाथᱮ / The Appellant.
2. ᮧ᭜यथᱮ / The Respondent.
3. The CIT, Exemption, Pune.
4. The Pr. CIT/CIT concerned.
5. िवभागीय ᮧितिनिध, आयकर अपीलीय अिधकरण, “B” बᱶच,
पुणे / DR, ITAT, “B” Bench, Pune.
गाडᭅ फ़ाइल / Guard File. आदेशानुसार / BY ORDER,
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Senior Private Secretary
आयकर अपीलीय अिधकरण, पुणे / ITAT, Pune.