KALABHARTI CHARITABLE FOUNDATION,VADODARA vs. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

ITA 225/AHD/2025Status: DisposedITAT Ahmedabad25 February 2026Bench: the final hearing of the appeal.”6 pages
AI SummaryRemanded

What did the Tribunal hold?

The tribunal found that the CIT(E) rejected the application based on an interpretation of the trust deed and the assessee's non-response to a show cause notice. The tribunal concluded that the issue of whether the trust's objects are predominantly charitable or religious requires a deeper, holistic examination of the trust deed, activities, intent, and judicial precedents. Therefore, the tribunal set aside the CIT(E)'s order and remanded the matter for fresh adjudication, suggesting the assessee consider revising its objects clause.

What were the facts?

The assessee, Kalabharti Charitable Foundation, applied for approval under section 80G(5) of the Income-tax Act. The CIT(E) rejected the application, citing the inclusion of "religion" in the trust's objects, deeming it a "religious-cum-charitable" trust not solely for charitable purposes as required by Section 80G(5) and Explanation 3. The assessee appealed, arguing its objects are general, not for specific religious propagation, and alleged a violation of natural justice.

What were the issues?

Whether the inclusion of "religion" in a trust's objects disentitles it from approval under section 80G, and whether the CIT(E) erred in interpreting the trust deed and providing an adequate hearing.

Which sections of the Income-tax Act were involved?

Section 80G(5),Section 80G(5B),Section 2(15)

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Income Tax Appellate Tribunal, “B” BENCH, AHMEDABAD

Before: DR. BRR KUMAR & SHRI SIDDHARTHA NAUTIYAL

For Appellant: Shri Sunil Talati, CA
For Respondent: Shri R P Rastogi, CIT-DR
Pronounced: 25.02.2026

PER SIDDHARTHA NAUTIYAL - JUDICIAL MEMBER:

This appeal has been filed by the Assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), (in short “Ld. CIT(E)”), Ahmedabad vide order dated 25.11.2024. 2. The assessee has raised the following grounds of appeal:

“1. The Ld. CIT(E) has erred in passing an order in Form 10AD by rejecting the appellant’s current application filed in Form 10AB for registration or approval u/s. 80G(5) of the Income Tax Act, 1961. It is submitted that the order passed by Ld. CIT(E) is incorrect and illegal both on facts and on law and the same be deleted.

2.

Your Appellant su

The order continues below.

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