SHREE BRAHMAJYOTI SANSKAR DHAM TRUST ,SURAT vs. THE COMMISSIONER OF INCOME TAX, (EXEMPTION) AHMEDABAD , AHMEDABAD

This appeal by assessee emanates from the order dated 27.11.2024, passed by the learned Commissioner of Income-tax (Exemption), Ahmedabad [in short, ‘ld. CIT(E)’], wherein the ld. CIT(E) rejected the application filed in Form No.10AB for approval u/s 80G(5)(iii) of the Income-tax Act (in short, ‘the Act’).

The grounds of appeal raised by assessee are as under: “(1) On the facts and circumstances of the case and as per law, the learned CIT(Exemption) was not justified in rejecting the application u/s 80G. (2) With no religious object and evidently, no religious activities undertaken, the learned CIT(Exemption) was driven by extraneous considerations in rejecting the application u/s 80G. (3) The above grounds are prejudiced to one another.

Aggrieved by the order of CIT(E), the assessee filed appeal before the Tribunal. The learned Authorized Representative (ld. AR) of the assessee filed a paper book containing 130 pages, including copy of Form 10AC granting provisional registration u/s 12AB, copy of provisional registration certificate in Form 10AC (80G), copy of application made in Form 10AB for regular registration u/s 80G(5), notice dated 13.08.2024, copy of self-certified trust deed in English translation, copies of audit report of last 3 years, show cause notice u/s 80G(5)(iii) and various decision (vide PB 70 to 130). He also submitted that the documents were also provided before the ld. CIT(E). However, the ld. CIT(E) has passed an ex parte order. The ld. AR submitted that out of 15 objects, only 2 objects are religious. If they are 2025-26 Shree Brahmajyoti Sanskar Dham Trust held to be religious, 13 out of 15 objects are charitable and evidently, no religious activities were undertaken, nor had there been any finding or an allegation in the order rejecting u/s 80G(5) of the Act. Apart from the objects Nos. 6 and 10, all other objects are charitable objects of the trust and it does not categorize the trust as one with religious objects. These objects are progressive and are intended to be undertaken for pursuing betterment of life and morality. He submitted that the trust had not incurred any expenses of religious nature in past 3 years. He relied upon the decision in cases of Shree Sattavis Kadva Patidar Pragati Mandal vs. CIT(E), (ii) Shri Yamunaji Mandir Trust, 46 ITR 283 (Trib) 53, (iii) M/s Maharaja Aggarsain Charitable Trust vs. CIT(E), wherein it was held that the trusts even with mixed objects and religious expenditure below 5% of total income were held to be eligible for registration u/s 80G(5) of the Act.

On the other hand, learned Commissioner of Income-tax - Departmental Representative (ld. CIT-DR) for the revenue supported the order of CIT(E).

We have heard both the parties and perused the materials available on record. The CIT(E) has treated the assessee-trust as a religious trust in view of the object Nos.6 and 10 of the trust deed. The ld. AR has submitted audited income and expenditure account and balance sheet for the years ended 31.03.2021, 31.03.2022 and 31.03.2023. The ld. AR submitted the audited annual accounts and audit report for financial years (FYs) 2021-22, 2022-23 and 2023-24 and submitted that there was no expenditure of religious nature incurred by the assessee-trust