Section 80G(5) of the Income Tax Act

Income-tax Act, 2025: s.133

Section 80G(5) 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) is Sree Meenakshi Mills Ltd. v. Commissioner of Income Tax (31 ITR 28), cited in 137 of the 2,236 judgments on BharatTax that turn on this section.

Leading authorities on Section 80G(5)

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. Dawoodi Bohra Jamat
364 ITR 31 · 2014 · Supreme Court
83
citing judgments

A trust's objects, even if based on religious tenets, can qualify as charitable for tax exemptions if its benefits are not exclusively restricted to a particular religious community or caste.

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.

Udhavdas Kewalram v. CIT
66 ITR 462 · 1967 · Supreme Court
59
citing judgments

The Income-tax Appellate Tribunal performs a judicial function under the Indian Income-tax Act, invested with authority to finally determine all questions of fact. When deciding an appeal, the Tribunal must consider all material facts with due care, record findings on all contentions, and maintain a judicial balance between the revenue and taxpayer claims. The power to condone delay by enacting section 5 of the Limitation Act of 1963 enables courts, including the Tribunal, to do substantial justice, with "sufficient cause" being an elastic expression.

Shree Swaminarayan Gadi Trust v. CIT
162 Taxmann.com 772 · 2024 · Reported
44
citing judgments

Where a trust application has a curable defect, the assessee should be allowed an opportunity to explain and rectify the defect before the CIT (Exemption). The appellate tribunal may allow the appeal and direct the CIT to reconsider the application.

Fifth Generation Education Society v. CIT
185 ITR 634 · 1990 · High Court
44
citing judgments

Registration under Section 12A and approval under Section 80G are distinct from assessment; issues relevant to assessing income under Section 11 cannot be grounds for rejecting an application for registration or approval.

CIT (Exemptions) v. Bayath Kutchhi Dasha Oswal Jain Mahajan Trust
74 Taxmann.com 199 · 2016 · High Court
35
citing judgments

Section 13(1)(b) of the Income Tax Act is applicable at the stage of granting exemption, not during the process of granting registration under section 12A/12AB, provided the trust's objects are charitable in character for the general public at large and not solely for the benefit of a particular religious community.

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.

Judgments on Section 80G(5)

Tamilnadu Foundation Inc Tn Chapter, Chennai vs. CIT Exemptions, Chennai

The appeal stand allowed for statistical purposes in terms of our above order

ITA 942/CHNY/2024[-]Status: DisposedITAT Chennai26 Apr 2024

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.942/Chny/2024 Tamilnadu Foundation Inc Tn Chapter Cit (Exemption) बनाम 27, Taylors Road, Kilpauk Chennai. / Vs. Chennai - 600 010 "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaatt-3997-M (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Ms. Sree Lakshmi Valli (Advocate) -Ld. Ar " थ"कीओरसे/Respondent By : Shri G. Suresh (Jcit) - Ld. Dr सुनवाईकीतारीख/Date Of Hearing : 26-04-2024 घोषणाकीतारीख /Date Of Pronouncement : 26-04-2024 आदेश / O R D E R Manoj Kumar Aggarwal () 1. The Assessee Sought Early Hearing Of This Appeal & The Application Was Placed Before The Bench For Grant Of Early Hearing. Upon Perusal, It Transpires That The Assessee Is Aggrieved By Rejection Of An Application Filed By It On 28.09.2023 Seeking Registration Under Clause (Ii) Of Sec. 80G(5). The Ld. Cit(Exemptions), Vide Impugned Order Dated 07.03.2024, Rejected The Same On The Ground That The Assessee Was Granted Provisional Approval Up-To Ay 2024-25. Therefore, The Application Ought To Have Been Made Under Clause (Iii) Instead Of Clause

For Appellant: Ms. Sree Lakshmi Valli (Advocate) -Ld. ARFor Respondent: Shri G. Suresh (JCIT) - Ld. DR
Section 80G(5)

Save Shakti Foundation, Chennai vs. CIT Exemption, Chennai

The appeal stand allowed for statistical purposes in terms of our above order

ITA 923/CHNY/2024[-]Status: DisposedITAT Chennai26 Apr 2024

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.923/Chny/2024 Save Shakti Foundation Cit (Exemption) बनाम No.10, 3Rd Main Road, Kottur Gardens Chennai. / Vs. Kotturpuram, Chennai - 600 085 "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aauts-7506-D (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri Y. Sridhar (Fca) - Ld. Ar " थ"कीओरसे/Respondent By : Shri G. Suresh (Jcit) - Ld. Dr सुनवाईकीतारीख/Date Of Hearing : 26-04-2024 घोषणाकीतारीख /Date Of Pronouncement : 26-04-2024 आदेश / O R D E R Manoj Kumar Aggarwal () 1. The Assessee Sought Early Hearing Of This Appeal & The Application Was Placed Before The Bench For Grant Of Early Hearing. Upon Perusal, It Transpires That The Assessee Is Aggrieved By Rejection Of An Application Filed By It On 27.09.2023 Seeking Registration Under Clause (Ii) Of First Proviso To Sec. 80G(5). The Ld. Cit(Exemptions), Vide Impugned Order Dated 07.03.2024, Rejected The Same On The Ground That The Assessee Was Granted Provisional Approval Up-To Ay 2024-25. Therefore, The Application Ought To Have Been Made Under Clause (Iii)

For Appellant: Shri Y. Sridhar (FCA) - Ld. ARFor Respondent: Shri G. Suresh (JCIT) - Ld. DR
Section 80G(5)

Anjuman-Himayath-E-Islam, Chennao vs. It-Exemptions, Chennai

The appeal stand allowed for statistical purposes in terms of our above order

ITA 756/CHNY/2024[2024-25]Status: DisposedITAT Chennai26 Apr 2024AY 2024-25

Bench: Hon’Ble Shri Mahavir Singh & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.756/Chny/2024 Anjuman-E-Himayath Islam Cit (Exemption) बनाम 16 B.N. Reddy Road, T.Nagar Chennai. / Vs. Chennai - 600 017 "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaata-4337-Q (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : None " थ"कीओरसे/Respondent By : Shri G. Suresh (Jcit) - Ld. Dr सुनवाईकीतारीख/Date Of Hearing : 26-04-2024 घोषणाकीतारीख /Date Of Pronouncement : 26-04-2024 आदेश / O R D E R Manoj Kumar Aggarwal () 1. The Assessee Sought Early Hearing Of This Appeal & The Application Was Placed Before The Bench For Grant Of Early Hearing. Upon Perusal, It Transpires That The Assessee Is Aggrieved By Rejection Of An Application Filed By It On 30.09.2023 Seeking Registration Under Clause (Iii) Of Sec. 80G(5). The Ld. Cit (Exemptions), Vide Impugned Order Dated 16.03.2024, Rejected The Same On The Ground That The Application Was Filed Beyond Due Date. Further, There Was No Extension For Filing Of Such Applications Beyond 30.09.2022. Aggrieved, The Assessee Is In Further Appeal Before Us.

For Appellant: NoneFor Respondent: Shri G. Suresh (JCIT) - Ld. DR
Section 80G(5)

Teddy Trust, Triumangalam vs. CIT(Exemption), Chennai

In the result, these Writ Petitions are allowed on the following terms: -

ITA 1315/CHNY/2023[--]Status: DisposedITAT Chennai10 Apr 2024

Bench: Hon’Ble Shri Mahavir Singh, Vp & Hon’Ble Shri Manoj Kumar Aggarwal, Am आयकरअपील सं./ Ita No.1315/Chny/2023 Teddy Trust Cit (Exemption) बनाम Tenkasi Road, Alampatti Po Chennai. / Vs. Tirumangalam-625 706. "थायीलेखासं./जीआइआरसं./Pan/Gir No. Aaatt-1047-L (अपीलाथ"/Appellant) : (" थ" / Respondent) अपीलाथ"कीओरसे/ Appellant By : Shri J. Saravanan (Advocate) -Ld. Ar " थ"कीओरसे/Respondent By : Shri A. Sasikumar (Cit) - Ld. Dr सुनवाईकीतारीख/Date Of Hearing : 10-04-2024 घोषणाकीतारीख /Date Of Pronouncement : 10-04-2024 आदेश / O R D E R Manoj Kumar Aggarwal () 1. Aggrieved By Denial Of Registration U/S. 80G(5) Of The Act By Learned Commissioner Of Income Tax (Exemption), Chennai [Cit(E)] Vide Impugned Order Dated 25.09.2023, The Assessee Is In Further Appeal Before Us. 2. From The Record, It Emerges That The Assessee Trust Filed An Application In Form No.10Ab On 30.03.2023 Seeking Registration Under Clause (Iii) Of First Proviso To Sub-Section (5) Of Sec.80G. It Transpired That The Assessee Trust Was Incorporated On 04.11.1992 & It Commenced Its Activities On 17.01.1992. The Assessee Was Granted

For Appellant: Shri J. Saravanan (Advocate) -Ld. ARFor Respondent: Shri A. Sasikumar (CIT) - Ld. DR
Section 10Section 12ASection 80GSection 80G(5)Section 80G(5)(i)Section 80G(5)(iii)Section 80G(5)(iv)