YUVA GAYATRI PARIWAR TRUST,ANAND vs. THE CIT(EXEMPTION), AHMEDABAD
THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD “B” BENCH
Before Dr. BRR Kumar, Vice President
And Ms. Suchitra Kamble, Judicial Member
Yuva Gayatri Pariwar
Trust,
11 Ambika Nagar
Society, Opp.
Omkareshwar Mahadev
Temple, B/h. Townhall,
Anand
PAN: AAATY8687R
(Appellant)
Vs
The CIT(Exemption)
Ahmedabad
(Respondent)
Assessee by: Shri Pramesh B. Doshi, A.R.
Revenue by: Shri R.P. Rastogi, CIT-D.R.
Date of hearing
: 09-07-2025
Date of pronouncement
: 03-09-2025
आदेश/ORDER
Per Suchitra Kamble, Judicial Member:
This is an appeal filed against the order dated 23-10-
2024 passed by CIT(E), Ahmedabad for assessment year nil.
The grounds of appeal are as under:- “1. The ld Commissioner of Income Tax, Exmp., Ahmedabad has erred in law in rejecting the application for approval in Form No. 10AB under clause (iii) of first proviso to Sec. 80G(5) of the Act on the ground that trust is for the benefit of any particular religious community or caste.
The ld Commissioner of Income Tax, Exmp., Ahmedabad has also erred in law in rejecting the approval u/s. 80G(5) of the Act considering that the appellant trust is having objects of religious nature.
The ld Commissioner of Income Tax, Exmp., Ahmedabad has also erred in law in cancelling the provisional approval u/s. 80G(5) of the Act. Assessment Year: NA
I.T.A No. 581/Ahd/2025
Yuva Gayatri Pariwar Trust, A.Y. NA
2
The order of the ld Commissioner of Income Tax, Exmp., Ahmedabad is illegal against the natural justice and good conscience.
5 The appellant preserves right to add, alter or amend any or more grounds of appeal.
Total tax effect (see note below):
N.A.”
The assessee is a charitable trust registered under the Bombay Public Trust Act. It was granted provisional registration on 23-06-2022 for A.Y. 2023-24 to A.Y. 2025-26. The 80G approval was also granted on the same day. The assessee made an application for approval under clause (iii) of 1st proviso to sub-section (5) of section 80G of the Income Tax Act 1961 and filed Form No. 10AB electronically. The CIT(E) issued notices and the assessee/applicant filed its reply dated 7th October, 2024. After considering the reply of the assessee/applicant and the financials (audited accounts) dated 31-03-2023 available on record, the CIT(E) rejected the provisional registration.
Being aggrieved by the order dated 23-10-2024 passed by the CIT(E), the applicant/assessee filed present appeal belatedly for 78 days. The applicant filed condonation of delay thereby stating that the assessee has undergone knee surgery during the period and therefore could not respond to the order of the CIT(E) and there was delay in filing the present appeal.
Since the delay appears to be genuine, the delay is condoned.
The ld. A.R. submitted that the trust deed of the applicant does not contain any object of religious nature and is a non- religious welfare oriented organization committed to public service, social upliftment and ethical development. The trust is doing activity for educational objects, social welfare, medical
I.T.A No. 581/Ahd/2025
Yuva Gayatri Pariwar Trust, A.Y. NA
3
objects and other charitable objects and is organizing various seminars for self-development and self reliance by providing various opportunities to rural and urban communities. The ld.
A.R. submitted that the CIT(E) has rejected the application of the applicant on the ground that trust is a religious trust and accordingly violated the conditions of section 80G(5)(iii) of the Income Tax Act. However, it is not correct as the trust is not established for religious object and it does not carry on any religious activities. The A.R. further submitted that the observation of the ld. CIT(E) that the assessee trust have integrated religious instances over and above 5% of total income in violation of section 80G(5)(iii) of the Act is not just and proper.
The ld. A.R. submitted that the object clause 1 in the trust deed refers its activities align with the document “Sapta Sutri
Aandolan” for charitable purposes on social upliftment and do not promote any specific religion. Object clause (2) refers that Akhil Vishwa Gayatri Parivar Trust Haridwar guides for ideals and principles to carry out the charitable objects. The ld. A.R.
submitted that the assessee trust is meant for education, physical and mental health, environment and other charitable objects and carrying on activities for the said object.
The ld. D.R. submitted that the assessee trust is having 38.53% as religious expenditure being 108 Kundi Yagna and the same is reflected in the audited account as on 31-03-2023 and therefore the CIT(E) has rightly rejected the approval under clause (iii) of 1st proviso of section 80G(5).
We have heard both the parties and perused all the material available on record. It is pertinent to note that as per the requirement of section 80G(5)(iii) of the Income Tax Act only
I.T.A No. 581/Ahd/2025
Yuva Gayatri Pariwar Trust, A.Y. NA
4
5% religious expenditure is allowable but in the present applicant/assessee trust case, the said religious expenditure is Rs. 17,85,466/- as against its total income of Rs. 46,33,403/- which is almost 38.53% and the same is reflected in audited accounts of the applicant trust. The applicant is accepting that the Trust is promoting certain religious activities without giving any supporting evidences to the activities such as education expenditure, health expenditure, as mentioned in the clause of the trust deed. Therefore, the applicant trust failed to establish that it is incurring 5% expenditure only for the religious activities. The applicant trust has also not given any details related to the expenditure incurred on the actual charitable purposes. The plea of the assessee that the object clause 1 is related to seven foundational principles but the assessee/applicant has not given any details as to how the assessee trust is implementing these seven foundational principles and has not given any details about educational or health or environmental institutions which are run by the trust for charitable purposes and which is beneficial to the society at large without any distinction of religion, caste, creed or gender.
Section 80G approval/application has to be granted after taking a holistic view and in the present case, the CIT(E) has taken a justified view and rejected the application. Hence, there is no need to interfere with the findings of CIT(E) and the appeal of the assessee/applicant trust is dismissed.
In the result, the appeal of the assessee is dismissed.
Order pronounced in the open court on 03-09-2025 (Dr. BRR Kumar) (Suchitra Kamble)
Vice President Judicial Member
I.T.A No. 581/Ahd/2025
Yuva Gayatri Pariwar Trust, A.Y. NA
5
Ahmedabad : Dated 03/09/2025
आदेश क त
ल प अे षत / Copy of Order Forwarded to:-
1. Assessee
Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से,
उप/सहायक पंजीकार
आयकर अपीलय अधकरण,
अहमदाबाद