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)

P.P. Savani Knowledge City, Surat vs. The C.I.T. (Exemptions), Ahmedabad

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

ITA 818/AHD/2017[2016-17]Status: DisposedITAT Surat11 Jan 2019AY 2016-17

Bench: Smt. Diva Singh & Shri O.P.Meenaआ.अ.सं./I.T.A. No.818/Ahd/2017 िनधा"रण वष"/Assessment Year : 2016-17 P.P.Savani Knowledge City, Vs. The Income Tax Officer(Hq), Mansi Building, Sidhhkutir Exemption, Cit(Exemption), Industrial Estate, Kapodara, Ahmedabad – 380 009. Surat – 395 006. [Pan: Aaicp 0506 D] अपीलाथ" Appellant ""यथ"/Respondent Shri Hiren Vepari – Ca िनधा"रती क" ओर से /Assessee By Shri Prasenjit Singh – Cit-Dr राज"व क" ओर से /Revenue By 10.01.2019 सुनवाई की तारीख/ Date Of Hearing: 11.01.2019 उ"ोषणा क" तारीख/Pronouncement On आदेश /O R D E R Per Diva Singh, Jm: 1. The Present Appeal Has Been Filed By The Assessee Assailing The Correctness Of The Order Dated 25.01.2017 Of Cit(Exemption), Ahmedabad On The Following Grounds : “(I) Denial Of Registration U/S.80G(5) Of The Act: (1) On The Facts & Circumstances Of The Case & As Per Law, The Commissioner Of Income-Tax (Exemption) Was Not Justified In Refusing To Grant Registration U/S.80G(5) Of The Act To The Appellant. (2) The Appellant Submits That Commissioner Of Income-Tax (Exemption) Was Not Correct In Stating That On Account Of Non-Furnishing Of Information, Registration Was Refused When All The Information Called For Was Furnished. (3) Without Prejudice To The Above, Refusal To Grant Registration U/S.80G(5) Was On Grounds Which Were Not Relevant. (Ii) Miscellaneous: The Appellant Craves Leave To Add, Alter Or Vary Any Of The Grounds Of Appeal” 2. The Ld.Ar Inviting Attention To The Impugned Order Submitted That The Assessee Filed An Application For Registration Of The Trust U/S.80G(5) In Form No.10G Under Rule 11Aa Which Was Stated To Be Received By The Office

Section 80G(5)