SIKH MISSIONARYCOLLEGE,LUDHIANA vs. INCOME TAX OFFICE, EXMEPTION WARD, JALANDHAR

students of schools and other monetary assistance to the poor and deserving students. (vii) To preach the spiritual values, enunciated in the religious scriptures, particularly the Sikh Scriptures in India and abroad. (viii) To train missionaries in Missionary College to be set-up to promote the above aims and to employ them in Missionary Colleges/Centres and to employ other staff, and to pay them in return of services, gratuities. Wages. Salaries, honorarium, etc., and to regulate terms & conditions of their services. (ix) To establish and/or aid institutions engaged in religious, social and philosophical research and set up libraries, monthly magazines, reading rooms and printing press etc. (x) To procure the incorporation, registration of Parchar Centres/Missionaries Colleges and other educational schools/ academic institutions. xi) To aid or otherwise subscribe to charitable, national or other institutions. and make donations to such bodies, persons and in such cases as may be deemed expedient in furtherance of the objectives of the Organization. xii) To Purchase, take on lease or otherwise acquire any movable and immovable property or any right or privilege or convenience for purpose of the Organisation. xiii Generally to do all such things as may be conducive and necessary for the advancement and fulfilment of the above objectives. 2.1. The ld. CIT(E) noted that from the plain reading of the MOA, it was been clearly manifested that the objects of the applicant are religious also. Therefore, a query dated 18.09.2024 was raised to the applicant regarding this issue and was requested to submit the reply till 23.09.2024. The query is being reproduced as under:

"Kindly refer to your reply filed on 12.09.2024. • In MOA, many of your objects are for Religious purposes, particularly in respect of Sikh religion. However, in your submissions in response to query No. 17 & 18 you have not clearly stated whether you are undertaking any religious activity. Please showcause why your application should not be rejected as the society appears to be engaged in promotion of Sikh religion as per its objects. You are requested to furnish your explanation on or before 23.09.2024 on chandigarh.cit.exmp@incometax.gov.in or to file your submission on the e-filing portal." 2.2. The ld. CIT(E) noted that in response to the above query, the applicant submitted an Affidavit dated 23.09.2024, wherein it was declared that the Society does not work or conduct charitable activities for people from specific cast, color or religion and the same is reproduced as under:-

2.3. The ld. CIT(E) observed that theaffidavit filed by the applicant was duly been considered but could not be accepted as in the MOA it has been clearly mentioned that the purpose of the College is to preach and promote the Sikh religion among mankind. She further observed that the information which is available in public domain clearly depicts that the motive of the applicant is to spread Sikh religion which is religious in nature.

2.4. The ld. CIT(E) also noted about the introduction of college as appearing on its website, and observed that mere submitting the evidence regarding the declaration that the activities are only charitable cannot be accepted. Thereafter, the ld. CIT(E) discussed about the provisions of section 2(15) of the Act and the relevant provisions of section 80G and also reproduced the decision of the Hon’ble Apex Court in the case of Upper Ganges Sugar Mills Ltd. Vs CIT [1997] 93 taxman 645(SC) and observed that the present application of the applicant filed in Form 10AB under clause (iii) of first proviso to section 80G(5) of the Act was not maintainable as the trust/institution was established with aims and objects of religious nature, which cannot be considered to be for charitable purposes per the provisions of section 80G(5) of the Income-tax Act. Accordingly, she held that the application filed by the applicant for approval u/s 80G of the Act was not maintainable and rejected the same and further held that consequent lack of approval shall supersede any approval granted u/s 80G of the Act by any authority at any earlier time.

“1. That on the facts, circumstances and legal position of the case, the Worthy CIT(E) has erred in rejecting registration application moved u/s 80G(5) even when the appellant was eligible for the same.

2. That on law, facts and circumstances of the case, the order passed by Worthy CIT(E) deserves to be quashed since the same has been passed without affording reasonable opportunity of being heard to the appellant. 3.1. The ld. AR relied upon the grounds of appeal and submitted a paper book containing page 1 to 241 and prayed that on more opportunity may be given to the assessee to explain the facts before the Ld. CIT(E) along with the relevant explanation.

5.1. It is noted that the assessee has been registered under Societies Registration Act, XXI of 1860 and as amended by Punjab Amendment Act, 1957 on 02.07.1980 (page no.16 of the paper book) and further the Ld. CIT(E) has not discussed about the validity of the registration of the assessee trust u/s 12A of the Act in her order. Therefore, in the interest of justice, to given one more opportunity to the assessee to explain its case before the ld. CIT(E), the order of the Ld. CIT(E) is set-aside and restored to her file for fresh consideration on merit and to pass the order in accordance with law after giving reasonable opportunity of being heard to the assessee.

Order pronounced as per Rule34(4) of the ITAT Rules, 1963 on 26th August, 2025.