ULLAL CHARITABLE TRUST ,MANGALORE vs. COMMISSIONER OF INCOME TAX(EXEMPTIONS), BENGALURU

ITA 1379/BANG/2025Status: DisposedITAT Bangalore25 February 2026AY 2025-26Bench: SHRI PRASHANT MAHARISHI, VICE – (President), SHRI SOUNDARARAJAN K. (Judicial Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the CIT(E) erred in denying the 80G approval solely based on fee receipts from educational activities, especially since the assessee had separate accounting for fees and donations. The Tribunal noted that the assessee already had 12A registration, indicating its charitable nature, and there was no allegation of misuse of funds. The denial of approval was considered not well-reasoned.

What were the facts?

The assessee, a charitable trust with registration under section 12A, applied for approval under section 80G. The CIT(E) rejected the application, observing a substantial increase in income over expenses and concluding that the trust might have a profit motive. The CIT(E) also noted that the trust received fees from students for education, which are distinct from donations.

What were the issues?

Whether the denial of approval under section 80G by the CIT(E) was justified, considering the trust's primary charitable activities and separate accounting for fees and donations.

Which sections of the Income-tax Act were involved?

Section 80G,Section 80G(5)(iii),Section 2(15),Section 12AB,Section 11(1),Section 11(1)(a),Section 12A

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, ‘B’ BENCH : BANGALORE

Before: SHRI PRASHANT MAHARISHI, VICE – & SHRI SOUNDARARAJAN K.

For Appellant: Dr. Sheetal Borker, Advocate
For Respondent: Shri Muthu Shankar, CIT-DR

PER SOUNDARARAJAN K., JUDICIAL MEMBER

This is an appeal filed by the assessee challenging the rejection order of the Ld.CIT(E) in which the application filed for an approval u/s. 80G has been denied by an order dated 31/01/2025 and raised the following grounds:

1.

On the facts and in the circumstances of the case the learned Commissioner of income Tax (Exemptions) erred in denying the approval under section 80G(5)(iii) of the Income tax Act, 1961. 2. The learned Commissioner of Income Tax (Exemptions) erred in holding that the appellant had not furnished sufficient details or proof of the activities of the trust/Institution within the meaning of section 2(1

The order continues below.

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