YUVA GAYATRI PARIWAR TRUST,ANAND vs. THE CIT(EXEMPTION), AHMEDABAD

ITA 581/AHD/2025Status: DisposedITAT Ahmedabad03 September 2025Bench: Dr. BRR Kumar (Vice President), Ms. Suchitra Kamble (Judicial Member)5 pages
AI SummaryDismissed

What did the Tribunal hold?

The Tribunal upheld the CIT(E)'s decision, concluding that the assessee failed to demonstrate that its expenditure for stated charitable activities (education, health, environment) was within the permissible limits for a non-religious trust. The significant religious expenditure (38.53%) without adequate supporting evidence for other charitable purposes justified the rejection of the Section 80G(5) approval.

What were the facts?

The assessee, Yuva Gayatri Pariwar Trust, initially received provisional registration and 80G approval. It applied for final approval under Section 80G(5), but the CIT(E) rejected the application, citing that the trust's religious expenditure (38.53% of total income) exceeded the permissible 5% limit and that the trust failed to provide sufficient evidence of non-religious charitable activities. The appeal against this rejection was filed belatedly, but the delay was condoned by the Tribunal.

What were the issues?

Whether a trust that incurs religious expenditure exceeding 5% of its total income and fails to provide sufficient evidence for other declared charitable activities is eligible for approval under Section 80G(5) of the Income Tax Act.

Which sections of the Income-tax Act were involved?

Section 80G(5),Section 10AB

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, AHMEDABAD “B” BENCH

Before: Dr. BRR Kumar & Ms. Suchitra Kamble

For Appellant: Shri Pramesh B. Doshi, A.R
For Respondent: Shri R.P. Rastogi, CIT-D.R

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.

2.

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.

2.

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.

3.

The ld Commiss

The order continues below.

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