PATANI YUVA SAMAJ SEWA TRUST,BANASKANTHA vs. THE CIT(EXEMPTION), AHMEDABAD

The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as ‘Ld.CIT(E)’] dated 22/11/2024, rejecting the application of the assessee-trust for approval u/s.80G(5) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

At the outset, the Ld.Counsel for the assessee has invited our attention to the impugned order of the Ld.CIT(E) to submit that the main object of the assessee is eduction and enviornmental protection. That the Ld.CIT(E) Patani Yuva Samaj Sewa Trust vs. The CIT(E)

A perusal of the aforesaid object of the assessee-trust would reveal that the said object is a general in nature, i.e. to construct community-halls for various social/community funcitons including satsnag, prayers and to celebrate religious and national festivals. The above object, in our view, is a general object to construct halls for various social/community functions. The above object in no manner propagates any religion. Therefore, the finding of the Ld.CIT(E) that the aforesaid object is religious in nature is not correct. The denial of approval u/s.80G(5) of the Act, because of the aforesaid reason is not justified. Therefore, the impugned order of the Ld.CIT(E) is set aside and the matter is restored to file of the Ld.CIT(E) for decision afresh on the application of the assessee for approval u/s.80G(5) of the Act, with a direction to grant approval to the assessee-trust if the assessee is otherwise found eligible for the same irrespective of the aforesaid object.