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Facts
The assessee, Jivandeep Foundation, a Trust created in 2016 for educational, health, and social purposes, filed for registration under Section 80G(5). The CIT(E) denied registration because the Trust had donated Rs. 1,00,000 to a political party in FY 2022-23, which they deemed outside the Trust's objectives.
Held
The Tribunal held that while the donation was made towards cultural and nation-building activities, the assessee failed to provide sufficient documentary evidence to support this claim. However, in the interest of justice, the order of the CIT(E) was set aside.
Key Issues
Whether the donation to a political party by a trust registered under Section 80G can be considered as fulfilling its charitable objectives, and if sufficient documentary evidence was provided to the CIT(E) to support such a claim.
Sections Cited
80G(5), 80G(5)(iii)
AI-generated summary — verify with the full judgment below
Income Tax Appellate Tribunal, “D” BENCH, AHMEDABAD
आयकर अपीलीय अिधकरण,अहमदाबाद "ायपीठ ‘D’ अहमदाबाद। IN THE INCOME TAX APPELLATE TRIBUNAL “D” BENCH, AHMEDABAD BEFORE DR. BRR KUMAR, VICE PRESIDENT AND SHRI T.R. SENTHIL KUMAR, JUDICIAL MEMBER Jivandeep Foundation, Commissioner of Income Tax GF-22, Classic Complex, Akota (Exemption), Vs Garden Char Rasta, Productivity Ahmedabad Road, Akota, Vadodara-390020 [PAN No.:AACTJ3864H] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Appellant by : Shri Samir Parikh, AR Respondent by : Shri Sher Singh, CIT-DR सुनवाई की तारीख/Date of Hearing: 12.11.2025 घोषणा की तारीख /Date of Pronouncement: 14.11.2025 आदेश/O R D E R PER T.R. SENTHIL KUMAR, JUDICIAL MEMBER:
This appeal is filed by the Assessee as against the order dated 28.12.2024 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying registration under section 80G(5) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
Brief facts of the case is that the assessee is a Trust created on 09-03-2016 with the main object of providing education, health, cultural activities, social services and rural developments for the Public at Large. The assessee filed Form 10AB for registration u/s. 80G(5) of the Act. The Ld. CIT(E) found that the assessee Trust had made donation to political party of Rs.1,00,000/- during the Financial Year 2022-23 as per the Audit Report. Therefore, issued a show cause notice to explain 2 the expenditure made is as per the object of the Trust. In reply, the assessee stated that the donation to political party was made for the object of the Trust namely Cultural activities and Nation Building activities such as Celebration of Independence Day on 15th August, 2022, distribution of National Flag to Public at Large under the scheme of “Har Ghar Tiranga-Azadi Ke Amrit Mahotsav”, etc.
The Ld. CIT(E) considered the above submissions of the assessee and held that the donation was made to support Cultural activities and National Building activities, but the assessee failed to submit documentary evidences in support of the same and thereby denied registration u/s. 80G(5)(iii) of the Act.
Aggrieved against the same, assessee is in appeal before us raising the following Grounds of Appeal:
“1. The learned Hon. CIT Exemption is not correct in rejecting approval u/s 80G (5) of the Income Tax Act.
2. The learned Hon. CIT Exemption is not correct in stating that the activity of the trust is not genuine on the ground that the appellant trust is failed to file documentary evidences regarding donation to political party.
3. Appellant trust pray that all the conditions laid down for approval under section 80G is fully satisfied, appeal of the appellant be allowed.
4. Appellant trust pray to allow the appeal of Appellant and grant the approval under clause -80(G)(5)(iii) of Income tax Act, 1961.
Alternatively, appeal be allowed by set aside the order and matter referred back to the desk of Hon. CIT Exemption for reconsideration. 3 6. Appellant craves leave to add, alter or amend any of the grounds of appeal
mentioned above, either at or before the time of hearing.”
5. Ld. Counsel submitted before us a Paper Book running to 28 pages enclosing copy of the registration of the Trust, objects of the Trust, annual accounts and copy of application for registration under Section 80G of the Act. Ld. Counsel submitted the Ld. CIT(E) denied registration as the assessee trust made donation of Rs. 1,00,000/- to political party. Whereas the above donation made by the Trust in support of cultural activities for celebration of Independence Day (15th August) and part of national building activity. Clause (iii) of the objects of the Trust provides to organize camps for youth to take interest in nation-building activities and develop ethical feeling in them. The assessee trust spent a sum of Rs. 6,33,617/- towards medical relief and Rs. 5,15,250/- towards providing foods and a relief of poverty and also spent Rs. 83,308/- towards other charitable objects. The Ld. CIT(E) held that the assessee trust failed to submit documentary evidences in support of its contention that the donation was made to support cultural and national building activities. Therefore, in the interest of justice, we deem it fit and set-aside the order passed by CIT(E) with a direction to consider the same afresh by giving opportunity of hearing to the assessee. Needless to say, the assessee to produce all relevant materials before CIT(E) for granting registration under Section 80G of the Act.