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DHARAMDAS CHARITABLE TRUST NA vs ARI,NAVSARIVS.THE CIT(EXEMPTION), AHMEDABAD | BharatTax

DHARAMDAS CHARITABLE TRUST NA vs. ARI,NAVSARIVS.THE CIT(EXEMPTION), AHMEDABAD

ITA 73/AHD/2025Status: DisposedITAT Ahmedabad27 November 2025Bench: SHRI SANJAY GARG (Judicial Member), SHRI NARENDRA PRASAD SINHA (Accountant Member)1 pages

AI SummaryAllowed

Facts

The assessee, a charitable organization registered under section 12A, applied for approval under section 80G(5) of the Income Tax Act. The CIT(E) rejected the application on the grounds that one of the trust's objects, related to religious programs like Ramkatha, was substantially religious.

Held

The Tribunal held that the object related to religious programs was not for propagating religion but for raising funds for charitable activities. It was aimed at benefiting the public at large and guiding society towards moral and spiritual well-being.

Key Issues

Whether the CIT(E) was justified in rejecting the application for approval under Section 80G(5) due to a religious object, when the object was intended for charitable fundraising and public benefit.

Sections Cited

80G(5), 80G(5B), 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: SHRI SANJAY GARG & SHRI NARENDRA PRASAD SINHA

For Appellant: Shri Hardik Vora, A.R, Shri R P Rastogi, CIT. DR

For Respondent: Shri R P Rastogi, CIT. DR

Hearing: 03/09/2025Pronounced: 27/11/2025

IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE: SHRI SANJAY GARG, JUDICIAL MEMBER AND SHRI NARENDRA PRASAD SINHA, ACCOUNTANT MEMBER आयकर अपील सं./I.T.A. No. 73/Ahd/2025 (िनधा�रण वष� / Assessment Year : NA) बनाम/ Dharamdas Charitable CIT(Exemption) Trust Ahmedabad Vs. Navsari Dadeshwar Via Sisodra, Navsari, Gujarat - 396463 �थायी लेखा सं./जीआइआर सं./PAN/GIR No. : AACTD2134L (Appellant) .. (Respondent) अपीलाथ� ओर से /Appellant by : Shri Hardik Vora, A.R. ��यथ� क� ओर से/Respondent by : Shri R P Rastogi, CIT. DR Date of Hearing 03/09/2025 Date of Pronouncement 27/11/2025 (आदेश)/ORDER Per Sanjay Garg, Judicial Member:

The present appeal has been filed by the assessee against the order of the Ld. Commissioner of Income Tax (Exemption), (hereinafter referred to as “CIT(E)”), Ahmedabad dated 22.11.2024, against the rejection of the assessee’s application seeking approval under Section 80G of the Income Tax Act, 1961 (hereinafter referred to as the “Act”).

2.

The assessee is a charitable organisation registered u/s.12A of the Act. It applied for approval u/s.80G(5) of the Act.

[Dharamdas Charitable Trust vs. CIT(Exemption)] - 2 – However, the same was rejected by the Ld. CIT(E) on the ground that one of the objects of the assessee trust was religious in nature. He referring to the relevant provisions of Section 80G(5) of the Act observed that though it was not the case of incurring of expenditure more than 5% of its total expenditure for religious purposes to attract the provision of sub-section (5B) to Section 80G of the Act, however, as per the relevant provision, if any of the object of the assessee is wholly or substantially religious, then the approval u/s.80G(5) of the Act cannot be granted.

4.

A perusal of the aforesaid objects would reveal that the objects of the assessee trust are of charitable in nature which are generally relating to providing of education, skill, blood donation and other health related support, help to poor with shelter and food and even for the welfare of animals. A perusal of the objects of the trust would reveal that all the objects of the assessee trust are charitable in nature for the purpose of help and support not only to mankind but to animals also. So far as the object no.9 which has been taken as a ground by the Ld. CIT(E) to reject the application for approval of the assessee u/s.80G(5) of the Act is concerned, it is to be noted that the said object cannot be said to be wholly or substantially religious in nature. The assessee through the aforesaid object doesn’t intend to propagate any religion organising of Ramkatha, Bhagwat Katha and organising Yagna etc. cannot be said to be for the purpose of propagating any religion. Ramkatha and Bhagwat Katha are organised for the benefit of public at large, irrespective of the religion they profess, from the preaching of saints and coupled with the historical events and in a [Dharamdas Charitable Trust vs. CIT(Exemption)] - 4 – way guide the society to lead a moral and spiritual, contended and happy life and to remain away from sins, immoral and bad act and conduct and for the peace, progress and welfare of one and the all. Moreover, it has been specifically mentioned that the aforesaid objects of organising Ramkatha and Bhagwat Katha etc. will be for the purpose of raising of funds which can be used on the other charitable activities, such as, medical relief and help to the poor and unprivileged. Under the circumstances, we do not find justification on the part of the Ld. CIT(E) in rejecting the application of the assessee for approval u/s.80G(5) of the Act. We, therefore, set aside the order of the Ld. CIT(E) and direct the Ld. CIT(E) to grant the approval to the assessee u/s.80G(5) of the Act from the date of application.