Section 80G(5)(iii) of the Income Tax Act

Income-tax Act, 2025: s.133

Section 80G(5)(iii) falls under section 80G of the Income-tax Act, 1961, which corresponds to section 133 (Deduction in respect of donations to certain funds, charitable institutions, etc) of the Income-tax Act, 2025.

Read section 133 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 80G(5)(iii) is Sree Meenakshi Mills Ltd. v. Commissioner of Income Tax (31 ITR 28), cited in 137 of the 687 judgments on BharatTax that turn on this section.

Leading authorities on Section 80G(5)(iii)

Sree Meenakshi Mills Ltd. v. Commissioner of Income Tax
31 ITR 28 · 1957 · Supreme Court
137
citing judgments

Expenditure incurred for commercial expediency, even without a direct or immediate benefit but indirectly facilitating business, is deductible as laid out wholly and exclusively for trade. The scope of reference jurisdiction under Section 66 is limited to questions of law, allowing challenges to Tribunal findings of fact only if they are perverse, unreasonable, or lack evidence.

CIT v. Parma Nand
268 ITR 172 · 2004 · High Court
81
citing judgments

Whether there was sufficient cause for delay in making applications for registration under section 12A and 80G is always a question of fact, and contumacious conduct by the assessee must be established for levying penalty under section 271C for non-deduction of TDS.

Ahmedabad Rana Caste Association v. CIT
82 ITR 704 · 1971 · Supreme Court
51
citing judgments

An intention to benefit a section of the public, as distinguished from a special individual, is sufficient for a trust to be considered for charitable registration and exemptions. This applies even if the beneficiaries belong to a specific caste, community, or professional group, allowing the trust to qualify as serving a general public utility under Section 2(15).

Bishnupur Public Education Institute v. Commissioner of Income Tax (Exemption)
139 Taxmann.com 121 · High Court
33
citing judgments

The delay in filing an application for approval under section 10(23C) cannot be condoned by the CIT (Exemption) if it is filed beyond the prescribed time limit, as this decision was affirmed by the Kolkata Tribunal in Bishnupur Public Education Institute.

CIT (Exemptions) v. Shree Tapeshwar Hanumanji Bajrang Charity Trust
122 Taxmann.com 98 · 2020 · High Court
30
citing judgments

Registration under Section 12A or 12AB of the Income-tax Act is a mandatory pre-condition for obtaining approval under Section 80G of the Act. Consequently, if an assessee lacks valid registration under Section 12A/12AB, their application for approval under Section 80G is liable to be rejected.

Esthuri Aswathiah v. CIT, Mysore
66 ITR 478 · 1967 · Supreme Court
29
citing judgments

The Income Tax Appellate Tribunal functions judicially and must decide all questions of fact and law before it. The Tribunal may act upon probabilities and use presumptions to bridge gaps in evidence, especially when conclusive proof is not available due to delays or the nature of transactions.

Sonepat Hindu Educational and Charitable Society v. CIT
278 ITR 262 · 2005 · High Court
26
citing judgments

Registration of an institution under Section 12A of the Income Tax Act is sufficient proof that it was established for charitable purposes, and therefore, registration under Section 80G cannot be denied solely on the basis that the institution is not for charitable purposes.

Upper Ganges Sugar Mills Ltd. v. CIT
93 Taxmann 645 · 1997 · Supreme Court
25
citing judgments

An institution or fund is deemed to be one to which section 80G applies even if it incurs expenditure of a religious nature not exceeding five per cent. of its total income, overriding Explanation 3 to section 80G(5)(ii).

Binod Bihari Singh v. Union of India
1 SCC 572 · 1993 · Reported
21
citing judgments

The requirement to explain each day's delay in filing an appeal must be interpreted pragmatically and with common sense, not pedantically. Refusing to condone delay can lead to a grave miscarriage of justice.

Nitdaa Foundation v. CIT
167 Taxmann.com 111 · 2024 · ITAT
17
citing judgments

An existing trust that has previously been granted approval under sections 12AA and 80G should apply under clause (i) of the first proviso to section 80G(5) as an old entity, not under clause (iii) as a new trust. Applying under the incorrect clause may lead to unnecessary provisional certificates and delays.

Judgments on Section 80G(5)(iii)

Indian Redcross Society Anand District Branch, Anand vs. The CIT (Exemption), Ahmedabad

In the result, the appeal of the assessee is allowed for statistical

ITA 1909/AHD/2024[NA]Status: DisposedITAT Ahmedabad12 Feb 2025

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokarआयकर अपील सं/Ita No.1909/Ahd/2024 निर्धारण वर्ष / Assessment Year : - Indian Redcross Society- Anand District Branch Sardar Bhavan Sardar Gunj Road Opp. Anand Municipality Anand-388 001 (Gujarat) बनाम / V/S. The Cit(Exemption) Vejalpur Ahmedabad स्थायी लेखा सं./Pan: Aaat 19551 L अपीलार्थी/ (Appellant) प्रत्यर्थी / (Respondent) Assessee By : Shri B.T. Thakkar, Ar Revenue By : Shri V. Nandakumar, Cit-Dr सुनवाई की तारीख / Date Of Hearing : 10/02/2025 घोषणा की तारीख / Date Of Pronouncement: 12/02/2025 आदेश/Order Per Makarand V. Mahadeokar, Am: This Appeal By The Assessee Is Directed Against The Order Dated 03/09/2024 Of The Commissioner Of Income Tax (Exemption), Ahmedabad [Hereinafter Referred To As “Cit(E)"], Rejecting The Approval Under Section 80G(5)(Iii) Of The Income Tax Act, 1961 [Hereinafter Referred To As “The Act”]. Facts Of The Case: 2. The Assessee, Indian Redcross Society Anand District Branch, Applied For Renewal Of Approval Under Section 80G(5)(Iii) Of The Act By Filing Form 10Ab. The Assessee Was Granted Provisional Approval Under The Said Section On 05/04/2022 Which Was Valid Up To A.Y. 2024-25. 2.

For Appellant: Shri B.T. Thakkar, ARFor Respondent: Shri V. Nandakumar, CIT-DR
Section 80GSection 80G(5)Section 80G(5)(i)Section 80G(5)(iii)

Anand Lions Club Society, Anand vs. The CIT (Exemption), Ahmedabad

In the result, both the appeals of the assessee are allowed for statistical purposes

ITA 1905/AHD/2024[NA]Status: DisposedITAT Ahmedabad12 Feb 2025

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokar1. आयकर अपील सं /Ita No.1899/Ahd/2024 2. आयकर अपील सं /Ita No.1900/Ahd/2024 िनधा"रण वष" /Assessment Year : - Apna Charitable Trust The Cit (Exemption) बनाम/ Devkuva Saiyedwada New Income Tax Office V/S. Near Gariyapir Masjid Vejalpur Petlad S.O., Anand – 388 450 Ahmedabad – 380 015 (Gujarat) "थायी लेखा सं./Pan: Aaita 5586 H अपीलाथ%/ (Appellant) &' यथ%/ (Respondent) Assessee By : Shri B.T. Thakkar, Ar Revenue By : Shri V. Nandakumar, Cit-Dr सुनवाई की तारीख/Date Of Hearing : 10/02/2025 घोषणा की तारीख /Date Of Pronouncement: 12/02/2025 आदेश/O R D E R Per Makarand V. Mahadeokar, Am: These Two Appeals By The Assessee Are Directed Against The Orders Of The Commissioner Of Income Tax (Exemption), Ahmedabad [Hereinafter Referred To As "Cit(E)"], Rejecting The Applications Filed By The Assessee For (I) Renewal Of Registration Under Section 12A(1)(Ac) (Iii) & (Ii) Approval Under Section 80G(5)(Iii) Of The Income Tax Act, 1961 [Hereinafter Referred To As "The Act"]. Since Both The Appeals Involve Similar Facts & Legal Issues, They Are Being Disposed Of By This Consolidated Order.

For Appellant: Shri B.T. Thakkar, ARFor Respondent: Shri V. Nandakumar, CIT-DR
Section 12ASection 12A(1)Section 12A(1)(ac)Section 80G(5)Section 80G(5)(i)Section 80G(5)(iii)

Apna Charitable Trust, Anand vs. The CIT (Exemption), Ahmedabad

In the result, both the appeals of the assessee are allowed for statistical purposes

ITA 1900/AHD/2024[NA]Status: DisposedITAT Ahmedabad12 Feb 2025

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokar1. आयकर अपील सं /Ita No.1899/Ahd/2024 2. आयकर अपील सं /Ita No.1900/Ahd/2024 िनधा"रण वष" /Assessment Year : - Apna Charitable Trust The Cit (Exemption) बनाम/ Devkuva Saiyedwada New Income Tax Office V/S. Near Gariyapir Masjid Vejalpur Petlad S.O., Anand – 388 450 Ahmedabad – 380 015 (Gujarat) "थायी लेखा सं./Pan: Aaita 5586 H अपीलाथ%/ (Appellant) &' यथ%/ (Respondent) Assessee By : Shri B.T. Thakkar, Ar Revenue By : Shri V. Nandakumar, Cit-Dr सुनवाई की तारीख/Date Of Hearing : 10/02/2025 घोषणा की तारीख /Date Of Pronouncement: 12/02/2025 आदेश/O R D E R Per Makarand V. Mahadeokar, Am: These Two Appeals By The Assessee Are Directed Against The Orders Of The Commissioner Of Income Tax (Exemption), Ahmedabad [Hereinafter Referred To As "Cit(E)"], Rejecting The Applications Filed By The Assessee For (I) Renewal Of Registration Under Section 12A(1)(Ac) (Iii) & (Ii) Approval Under Section 80G(5)(Iii) Of The Income Tax Act, 1961 [Hereinafter Referred To As "The Act"]. Since Both The Appeals Involve Similar Facts & Legal Issues, They Are Being Disposed Of By This Consolidated Order.

For Appellant: Shri B.T. Thakkar, ARFor Respondent: Shri V. Nandakumar, CIT-DR
Section 12ASection 12A(1)Section 12A(1)(ac)Section 80G(5)Section 80G(5)(i)Section 80G(5)(iii)

Apna Charitable Trust, Anand vs. The CIT (Exemption), Ahmedabad

In the result, both the appeals of the assessee are allowed for statistical purposes

ITA 1899/AHD/2024[NA]Status: DisposedITAT Ahmedabad12 Feb 2025

Bench: Ms. Suchitra Kamble & Shri Makarand V. Mahadeokar1. आयकर अपील सं /Ita No.1899/Ahd/2024 2. आयकर अपील सं /Ita No.1900/Ahd/2024 िनधा"रण वष" /Assessment Year : - Apna Charitable Trust The Cit (Exemption) बनाम/ Devkuva Saiyedwada New Income Tax Office V/S. Near Gariyapir Masjid Vejalpur Petlad S.O., Anand – 388 450 Ahmedabad – 380 015 (Gujarat) "थायी लेखा सं./Pan: Aaita 5586 H अपीलाथ%/ (Appellant) &' यथ%/ (Respondent) Assessee By : Shri B.T. Thakkar, Ar Revenue By : Shri V. Nandakumar, Cit-Dr सुनवाई की तारीख/Date Of Hearing : 10/02/2025 घोषणा की तारीख /Date Of Pronouncement: 12/02/2025 आदेश/O R D E R Per Makarand V. Mahadeokar, Am: These Two Appeals By The Assessee Are Directed Against The Orders Of The Commissioner Of Income Tax (Exemption), Ahmedabad [Hereinafter Referred To As "Cit(E)"], Rejecting The Applications Filed By The Assessee For (I) Renewal Of Registration Under Section 12A(1)(Ac) (Iii) & (Ii) Approval Under Section 80G(5)(Iii) Of The Income Tax Act, 1961 [Hereinafter Referred To As "The Act"]. Since Both The Appeals Involve Similar Facts & Legal Issues, They Are Being Disposed Of By This Consolidated Order.

For Appellant: Shri B.T. Thakkar, ARFor Respondent: Shri V. Nandakumar, CIT-DR
Section 12ASection 12A(1)Section 12A(1)(ac)Section 80G(5)Section 80G(5)(i)Section 80G(5)(iii)

Navjyoti Education Society, Jhargram vs. ITO, Ward-1(1), Exemption, Kolkata

The appeal of the assessee is allowed for statistical purposes

ITA 2343/KOL/2024[2024-25]Status: DisposedITAT Kolkata12 Feb 2025AY 2024-25

Bench: Shri Rajesh Kumar & Shri Sonjoy Sarmai.T.A. No.2343/Kol/2024 Assessment Year: 2024-25 Navjyoti Education Society………………………………………..………….……Appellant Matri Bhaban, Vidyasagar Pally, Jhargram, Dist-Jhargram, West Bengal-721507. [Pan: Aabtn2609M] Vs. Cit(Exemptions), Kolkata……..……....….….. ………………..........…...…..…..Respondent Appearances By: Shri P. K. Ray, Ar, Appeared On Behalf Of The Appellant. Shri Raja Sengupta, Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : January 30, 2025 Date Of Pronouncing The Order : February 12, 2025 Order Per Sonjoy Sarma: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 23.09.2024 Of The Commissioner Of Income Tax (Exemption), Kolkata [Hereinafter Referred To As ‘Cit(Exemption)’] Rejecting The Application Of The Assessee For Approval As Per The Provisions Of Section 80G(5)(Iv)(B) Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. Brief Facts Of The Case Are That The Assessee Was Granted Provisional Approval U/S 80G(5)(Iv) Of The Act In Form No.10Ac By An Order Dated 31.12.2021 Which Is Valid From 31.12.2021 To A.Y 2024-25. Subsequently, The Assessee Filed Application For Approval U/S 80G(5)(Iii) On 16.01.2023 In Form 10Ab Under Rule 17A Of The I.T. Rules 1962. Subsequently, A Notice Was Issued To The Assessee At The Email Address Provide By The Applicant Trust Requesting Details Of Its Activity Along With Supporting Document. In Response To That, The Assessee Furnished Certain Documents Which Were Duly Examined & It Was Noted That The Assessee Had Commenced Its Activities On 06.04.2000. As Per Cbdt

Section 80G(5)(iii)Section 80G(5)(iv)