MAHAJAN AWAS FOUNDATION,AHMEDABAD vs. THE CIT(EXEMPTION), AHMEDABAD

5. On the facts and merits of the case appellant craves for admission of additional evidences in the interest of natural justice and equity. The appellant craves leave to add, amend, alter, edit, delete, modify or change all or any of the grounds of appeal at the time of or before the hearing of the appeal.

3 documents, which clearly demonstrated the genuine nature of the activities. The Ld.AR also relied on various judicial pronouncements including the judgement of Hon’ble Allahabad High Court in the case of Sri Radha Raman Niwas Trust (2014) 42 taxmann.com 77 (All.).

4.1. The assessee has provided audited financial statements and supporting vouchers, which show that no funds have been used for religious purposes. All expenses have been directed toward charitable activities, as confirmed by the documents on record. The Ld.CIT (Exemption) failed to properly assess these documents, which provide a clear indication that the assessee's activities are charitable.

4 classified as religious if they are aimed at the general public and not for the benefit of a particular community. In this case, the assessee trust’s objects included conducting religious ceremonies, such as "Akhand Naam Sankirtan" (meditation and spiritual chanting), and providing food during festivals (Bhandara). The Commissioner had denied approval under section 80G of the Act, citing that the activities were religious and not charitable. However, the Hon’ble High Court overruled the Ld.CIT’s decision, observing that while activities like Akhand Naam Sankirtan and Bhandara have religious undertones, they serve the general public without any restriction based on caste or religion. The Court held that unless it is proved that these activities were confined to a specific religious community, they should be regarded as charitable, not religious. The Court emphasized that promoting values such as meditation, yoga, and providing food during festivals benefits society as a whole, irrespective of the religious origin of the activities.

5.1. This ruling is relevant to the present case. The assessee’s objectives include promoting universally accepted ethical values such as non-violence (ahimsa), truth (satya), and environmental conservation, which are derived from Jainism but are intended for the welfare of society as a whole. As held in the Sri Radha Raman Niwas Trust case, the mere mention of a religious tradition or philosophy does not disqualify a trust from being charitable, as long as its activities are for the general public utility and not restricted to a specific religious group.

5.2. At the stage of registration and approval, it is not necessary for the Ld.CIT(E) to assess the application of income or how the funds will be Mahajan Awas Foundation vs. The CIT (E)

5 utilized in future years. The focus should be on whether the trust’s activities benefit society at large. The assessee in the present case has provided sufficient evidence, including audited financial statements and vouchers, to demonstrate that all its expenditures were for charitable purposes, such as providing relief to the underprivileged and protecting the environment.

5.2. The assessee has been granted final registration under section 12AB of the Act after verification of its activities. This registration is a strong indication that the assessee's activities are genuine and charitable. The Ld.CIT (Exemption) should have considered this fact before rejecting the application under section 80G of the Act.

5.3. We find that the Ld.CIT (Exemption) failed to consider the assessee’s submissions and supporting evidence, thereby violating the principles of natural justice. The assessee was not afforded a fair opportunity to present its case, as the Ld.CIT (Exemption) disregarded key documents and judicial precedents that were favorable to the assessee.

5.4. We are of the view that the rejection of the assessee’s application for approval under section 80G(5) of the Act by the Ld.CIT (Exemption) was unjustified. The assessee’s objects are charitable, and no evidence has been provided to show that it has engaged in religious activities. Furthermore, the final registration granted under section 12AB of the Act corroborates the charitable nature of the assessee’s activities.

5.5. The order of the Ld.CIT(E) is set aside. The matter is remanded back to the Ld.CIT(E) for fresh consideration, with specific directions to grant Mahajan Awas Foundation vs. The CIT (E) approval under section 80G(5) of the Act, after considering the evidence provided by the assessee, including its audited financial statements and the vouchers of expenses, which establish the charitable nature of its activities. The Ld.CIT (Exemption) shall provide the assessee with a reasonable opportunity of being heard before passing a fresh order.