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)

Recycle India Foundation, Kolkata vs. CIT(Exemption), Kolkata

In the result, appeal of the assessee is allowed

ITA 1473/KOL/2023[00]Status: DisposedITAT Kolkata02 May 2024

Bench: Dr. Manish Borad, Hon’Ble & Shri Sanjay Garg, Hon’Blei.T.A. No. 1472 & 1473/Kol/2023 Recycle India Foundation Cit (Exemption), Kolkata 230A, Ajc Bose Road Vs 4Th Floor, Unit-42 Chitrakoot Building Kolkata - 700020 [Pan : Aadtr9420N] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Ramesh Patodia, Advocate Revenue By : Shri Abhijit Kundu, Cit, D/R सुनवाई क" तारीख/Date Of Hearing : 10/04/2024 घोषणा क" तारीख /Date Of Pronouncement: 02/05/2024 आदेश/O R D E R Per Dr. Manish Borad: Both These Appeals Are Directed At The Instance Of The Assessee Against The Separate Orders Of The Learned Commissioner Of Income Tax (Exemptions), (Hereinafter The “Ld. Cit(E)”) Dt. 09/02/2023 & 29/08/2023. 2. At The Outset, We Find That Ita No. 1472/Kol/2023, Challenging The Impugned Order Of The Ld. Cit(E) Rejecting The Application Of The Assessee For Registration Under Clause (Ii) Of Section 80G Of The Income Tax Act, 1961 (Hereinafter ‘The Act’) Filed In Form 10Ab Dt. 24/09/2022, To Be Non-Maintainable On The Ground That The Assessee Has Filed Another Application, Seeking Registration U/S Under Clause (Ii) Of Section 80G Of The Act Filed In Form 10Ab Dt. 15/02/2023. We, However, Find No Reason To Interfere With Such Finding & Decision Of The Ld. Cit(E) Curbing

For Appellant: Shri Ramesh Patodia, AdvocateFor Respondent: Shri Abhijit Kundu, CIT, D/R
Section 80GSection 80G(5)Section 80G(5)(iii)

Recycle India Foundation, Kolkata vs. CIT(Exemption), Kolkata

In the result, appeal of the assessee is allowed

ITA 1472/KOL/2023[00]Status: DisposedITAT Kolkata02 May 2024

Bench: Dr. Manish Borad, Hon’Ble & Shri Sanjay Garg, Hon’Blei.T.A. No. 1472 & 1473/Kol/2023 Recycle India Foundation Cit (Exemption), Kolkata 230A, Ajc Bose Road Vs 4Th Floor, Unit-42 Chitrakoot Building Kolkata - 700020 [Pan : Aadtr9420N] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri Ramesh Patodia, Advocate Revenue By : Shri Abhijit Kundu, Cit, D/R सुनवाई क" तारीख/Date Of Hearing : 10/04/2024 घोषणा क" तारीख /Date Of Pronouncement: 02/05/2024 आदेश/O R D E R Per Dr. Manish Borad: Both These Appeals Are Directed At The Instance Of The Assessee Against The Separate Orders Of The Learned Commissioner Of Income Tax (Exemptions), (Hereinafter The “Ld. Cit(E)”) Dt. 09/02/2023 & 29/08/2023. 2. At The Outset, We Find That Ita No. 1472/Kol/2023, Challenging The Impugned Order Of The Ld. Cit(E) Rejecting The Application Of The Assessee For Registration Under Clause (Ii) Of Section 80G Of The Income Tax Act, 1961 (Hereinafter ‘The Act’) Filed In Form 10Ab Dt. 24/09/2022, To Be Non-Maintainable On The Ground That The Assessee Has Filed Another Application, Seeking Registration U/S Under Clause (Ii) Of Section 80G Of The Act Filed In Form 10Ab Dt. 15/02/2023. We, However, Find No Reason To Interfere With Such Finding & Decision Of The Ld. Cit(E) Curbing

For Appellant: Shri Ramesh Patodia, AdvocateFor Respondent: Shri Abhijit Kundu, CIT, D/R
Section 80GSection 80G(5)Section 80G(5)(iii)

Mallarpur Naisuva, Birbhum vs. CIT(E), Kolkata.

The appeal of the assessee is allowed accordingly and the ld

ITA 165/KOL/2024[N/A]Status: DisposedITAT Kolkata23 Apr 2024

Bench: Shri Sanjay Garg & Dr. Manish Boradi.T.A. Nos.164&165/Kol/2024 Mallarpur Naisuva……………..…….…................…...……………....Appellant Mallarpur, Birbhum, W.B-731216. [Pan: Aabtm6211E] Vs. Cit(Exemptions), Kolkata.....…..........................................…..…..... Respondent Appearances By: Shri P. K. Ray, Ar & Daud Ahmed Buksh, Appeared On Behalf Of The Appellant. Shri Abhijit Kundu, Cit-Sr. Dr, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : April 09, 2024 Date Of Pronouncing The Order : April 23, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Captioned Appeals Have Been Preferred By The Assessee Against The Separate Orders Both Dated 09.01.2024 Of The Commissioner Of Income Tax (Exemption), Kolkata [Hereinafter Referred To As ‘Cit(Exemption)’]. Ita No.164/Kol/2024 Is Against The Rejection Of Application For Registration U/S 12Aa(1)(Ac)(Iii) Of The Income Tax Act (Hereinafter Referred To As The ‘Act’) & Ita No.165/Kol/2024 Is Against The Rejection Of The Application Of The Assessee For Final Approval As Per The Provisions Of Section 80G(5)(Iii) Of The Act. 2. Ita No.164/Kol/2024 - The Ld. Cit(Exemptions) Has Rejected The Application Holding The Same To Be Prima Facie Not Maintainable Being Premature. The Ld. Cit(Exemptions) Observed That The Assessee Earlier

Section 11Section 12Section 12ASection 12A(1)(ac)Section 80GSection 80G(5)Section 80G(5)(iii)

Rotary Club of Jadavpur Trust, Kolkata vs. CIT(E), Kolkata.

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

ITA 1126/KOL/2023[2023-24]Status: DisposedITAT Kolkata19 Feb 2024AY 2023-24

Bench: Dr. Manish Borad, Hon’Ble & Shri Sonjoy Sarma, Hon’Blei.T.A. No. 1126/Kol/2023 Assessment Year: 2023-24 Rotary Club Of Jadavpur Trust Commissioner Of Income Tax 6A, North Road Vs (Exemption), Kolkata Jadavpur Kolkata - 700032 [Pan : Aaatr8066R] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri A.K. Indra, C.A. Revenue By : Shri Rakesh Kumar Das, Cit, D/R सुनवाई क" तारीख/Date Of Hearing : 08/02/2024 घोषणा क" तारीख /Date Of Pronouncement: 19/02/2024 आदेश/O R D E R Per Dr. Manish Borad: The Present Appeal Is Directed At The Instance Of The Assessee Against The Order Of The Commissioner Of Income Tax (Exemption), Kolkata (Hereinafter The “Ld. Cit(E)”) Dt. 28/08/2023, Rejecting The Registration Under 80G(5)(Iii) Of The Income Tax Act, 1961 (“The Act”). 2. At The Outset, The Ld. Counsel For The Assessee Submitted That, The Sole Ground On Which The Ld. Cit(E) Has Rejected The Grant Of Registration To The Assessee Trust, Is That The Assessee Did Not Comply With The Hearing Notices Fixing The Hearings On 08/08/2023 & 22/08/2023 & Neither The Assessee File The Necessary Documents As Called For By The Ld. Cit(E). Before Us, The Ld. Counsel For The Assessee Submitted That, The Secretary Of The Assessee Trust, Who Was Entrusted Pursue The Matter Of Registration Was Down With Enteric Fever & Was On Complete Bed Rest On The Advise Of The Attending Physician. Therefore, He Could Not Access

For Appellant: Shri A.K. Indra, C.AFor Respondent: Shri Rakesh Kumar Das, CIT, D/R