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)

Fortess, Mumbai vs. Comm of Income Tax(Exemption), Mumbai

In the result, the appeal filed by the assessee is allowed

ITA 2201/MUM/2021[2022-23 TO AY 2026-27]Status: DisposedITAT Mumbai21 Oct 2022

Bench: Shri Aby T. Varkey, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. Nos. 2200 To 2201/Mum/2021 (निर्धारण वर्ा / Assessment Year: 2022-23 To Ay. 2026-27) Fortess बिधम/ Cit(Exemptions) 6Th 1306-1307,Lodha Supremus, Floor, Cumballa Hill, Vs. Senapati Bapat Marg, Lower Mtnl, Building, Pedder Parel, Mumbai-400013. Road, Mumbai-400026. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaaaf4811F (अपीलाथी /Appellant) (प्रत्यथी / Respondent) .. Assessee By: Shri Sukhsagar Syal Revenue By: Shri Samuel Pitta (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 14/10/2022 घोषणा की तारीख /Date Of Pronouncement: 21/10/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: These Are Appeal Preferred By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax (Exemptions), Mumbai Dated 02.10.2021 Whereby The Ld. Cit(E) Granted Approval U/S 80G(5) Of The Income Tax Act, 1961 (Hereinafter “The Act”). However, The Grant Of Approval Was Made Subject To Several Conditions Imposed In Form No. 10Ac While Granting Registration Under Clause (Iii) Of Proviso To Section 80G(5) Of The Act. Being Aggrieved By The Ld. Cit(E)’S Action Stipulating Several Conditions While Granting Registration U/S 80G Of The Act, The Assessee Is In Appeal Before Us. 2. At The Outset, The Ld. Ar Of The Assessee Shri Sukhsagar Syal Brought To Our Notice That The Issue Is No Longer Res-Integra. According To Him, This Tribunal Has Already Taken A View On This Issue As To Whether The Cit(E) While Granting The Registration Approval U/S

For Appellant: Shri Sukhsagar SyalFor Respondent: Shri Samuel Pitta (Sr. AR)
Section 12ASection 80GSection 80G(5)

Fortess, Mumbai vs. CIT (Exemption), Mumbai

In the result, the appeal filed by the assessee is allowed

ITA 2200/MUM/2021[2022-23 TO AY 2026-27]Status: DisposedITAT Mumbai21 Oct 2022

Bench: Shri Aby T. Varkey, Jm & Shri Amarjit Singh, Am आयकर अपील सं/ I.T.A. Nos. 2200 To 2201/Mum/2021 (निर्धारण वर्ा / Assessment Year: 2022-23 To Ay. 2026-27) Fortess बिधम/ Cit(Exemptions) 6Th 1306-1307,Lodha Supremus, Floor, Cumballa Hill, Vs. Senapati Bapat Marg, Lower Mtnl, Building, Pedder Parel, Mumbai-400013. Road, Mumbai-400026. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaaaf4811F (अपीलाथी /Appellant) (प्रत्यथी / Respondent) .. Assessee By: Shri Sukhsagar Syal Revenue By: Shri Samuel Pitta (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 14/10/2022 घोषणा की तारीख /Date Of Pronouncement: 21/10/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: These Are Appeal Preferred By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax (Exemptions), Mumbai Dated 02.10.2021 Whereby The Ld. Cit(E) Granted Approval U/S 80G(5) Of The Income Tax Act, 1961 (Hereinafter “The Act”). However, The Grant Of Approval Was Made Subject To Several Conditions Imposed In Form No. 10Ac While Granting Registration Under Clause (Iii) Of Proviso To Section 80G(5) Of The Act. Being Aggrieved By The Ld. Cit(E)’S Action Stipulating Several Conditions While Granting Registration U/S 80G Of The Act, The Assessee Is In Appeal Before Us. 2. At The Outset, The Ld. Ar Of The Assessee Shri Sukhsagar Syal Brought To Our Notice That The Issue Is No Longer Res-Integra. According To Him, This Tribunal Has Already Taken A View On This Issue As To Whether The Cit(E) While Granting The Registration Approval U/S

For Appellant: Shri Sukhsagar SyalFor Respondent: Shri Samuel Pitta (Sr. AR)
Section 12ASection 80GSection 80G(5)

Bai Hirabai Jamsetji Tata Na vs. Ari Charitable Institution (Previously Baihirabai Tata Navsari Charitable Institute, Mumbai

In the result, the appeal filed by the assessee is allowed

ITA 2198/MUM/2021[AY 2022-2023 TO AY 2026-27]Status: DisposedITAT Mumbai11 Oct 2022

Bench: Shri Pramod Kumar, Vp & Shri Aby T. Varkey, Jm आयकर अपील सं/ I.T.A. No. 2198/Mum/2021 (निर्धारण वर्ा / Assessment Year: 2022-23 To Ay. 2026-27) Bai Hirabai Jamsetji Tata बिधम/ Cit(Exemptions) 6Th Navsari Charitable Floor, Cumballa Hill, Vs. Institution (Previously Mtnl Building Pedder Road, Known As Baihirabai Tata Mumbai-400026. Navsari Charitable Institute) Bombay House, Ground Floor, Homi Mody Street, Fort, Mumbai. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaatb0258P (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri Atul Suraiya Revenue By: Dr. Mahesh Akhade (Dr) सुनवाई की तारीख / Date Of Hearing: 30/09/2022 घोषणा की तारीख /Date Of Pronouncement: 11/10/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: This Is An Appeal Preferred By The Assessee Against The Order Of The Ld. Commissioner Of Income Tax (Exemptions), Mumbai Dated 02.10.2021 Whereby The Ld. Cit(E) Granted Approval U/S 80G(5) Of The Income Tax Act, 1961 (Hereinafter “The Act”). However, The Grant Of Approval Was Made Subject To Several Conditions Imposed In Form No. 10Ac While Granting Registration Under Clause (Iii) Of Proviso To Section 80G(5) Of The Act. Being Aggrieved By The Ld. Cit(E)’S Action Stipulating Several Conditions While Granting Registration U/S 80G Of The Act, The Assessee Is An Appeal Before Us. 2. It Is Admitted Fact That The Assessee Is Registered U/S 12A Of The Act & Further It Is Noted That Similar Issue Has Cropped Up (I.E.

For Appellant: Shri Atul SuraiyaFor Respondent: Dr. Mahesh Akhade (DR)
Section 12ASection 80GSection 80G(5)

Chamber of Indian Charitable Trusts, Mumbai vs. Pr CIT/ Comm of Income Tax, Mumbai

In the result, the appeals filed by the assessee are allowed

ITA 2169/MUM/2021[2022-23]Status: DisposedITAT Mumbai28 Sept 2022AY 2022-23

Bench: Shri Aby T. Varkey, Jm & Shri Gagan Goyal, Am आयकर अपील सं/ I.T.A. Nos. 2168 & 2169/Mum/2021 (निर्धारण वर्ा / Assessment Year:2022-23) Chamber Of Indian बिधम/ Pcit Charitable Trusts Mumbai-400020. Vs. Gala No.328-332, Linkway Estates, New Link Road, Malad (W), Mumbai- 400064. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaicc9627J (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri P. J. Pardiwala & Mr. Sukhsagar Syal. Revenue By: Shri Nihar Samal (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 04/07/2022 घोषणा की तारीख /Date Of Pronouncement: 28/09/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: These Are Appeals Preferred By The Assessee Trust Against The Imposition Of Certain Impugned Conditions In The Orders Passed By The Ld. Cit(E), Mumbai Dated 24.09.2021 & 24.05.2021, Whereby The Ld. Cit(E) Granted Registration U/S 12Ab(1)(A) Of The Income Tax Act, 1961 (Hereinafter “The Act”) & Under Clause (Iii) Of The Second Proviso To Section 80G(5) Of The Act

For Appellant: Shri P. J. Pardiwala & MrFor Respondent: Shri Nihar Samal (Sr. AR)
Section 12ASection 12A(1)(ac)Section 80G(5)

Chamber of Indian Charitable Trusts, Mumbai vs. Pr CIT/ Comm of Income Tax, Mumbai

In the result, the appeals filed by the assessee are allowed

ITA 2168/MUM/2021[2022-23]Status: DisposedITAT Mumbai28 Sept 2022AY 2022-23

Bench: Shri Aby T. Varkey, Jm & Shri Gagan Goyal, Am आयकर अपील सं/ I.T.A. Nos. 2168 & 2169/Mum/2021 (निर्धारण वर्ा / Assessment Year:2022-23) Chamber Of Indian बिधम/ Pcit Charitable Trusts Mumbai-400020. Vs. Gala No.328-332, Linkway Estates, New Link Road, Malad (W), Mumbai- 400064. स्थायी लेखा सं./जीआइआर सं./Pan/Gir No. : Aaicc9627J (अपीलाथी /Appellant) .. (प्रत्यथी / Respondent) Assessee By: Shri P. J. Pardiwala & Mr. Sukhsagar Syal. Revenue By: Shri Nihar Samal (Sr. Ar) सुनवाई की तारीख / Date Of Hearing: 04/07/2022 घोषणा की तारीख /Date Of Pronouncement: 28/09/2022 आदेश / O R D E R Per Aby T. Varkey, Jm: These Are Appeals Preferred By The Assessee Trust Against The Imposition Of Certain Impugned Conditions In The Orders Passed By The Ld. Cit(E), Mumbai Dated 24.09.2021 & 24.05.2021, Whereby The Ld. Cit(E) Granted Registration U/S 12Ab(1)(A) Of The Income Tax Act, 1961 (Hereinafter “The Act”) & Under Clause (Iii) Of The Second Proviso To Section 80G(5) Of The Act

For Appellant: Shri P. J. Pardiwala & MrFor Respondent: Shri Nihar Samal (Sr. AR)
Section 12ASection 12A(1)(ac)Section 80G(5)