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)

Kalinga Institute of Industrial Technology, Patia, Bhubaneswar vs. CIT(Exemption), Hyderabad

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

ITA 178/CTK/2024[2023-24]Status: DisposedITAT Cuttack19 Jun 2024AY 2023-24

Bench: Shri George Mathan & Shri Manish Agarwalआयकर अऩीऱ सं/Ita No.178/Ctk/2024 (ननधाारण वषा / Assessment Year : 2023-2024) Kalinga Institute Of Industrial Vs Cit(Exemption), Hyderabad Technology, Patia, Bhubaneswar Pan No. :Aaatk 8724 H (अऩीऱाथी /Appellant) (प्रत्यथी / Respondent) .. ननधााररती की ओर से /Assessee By : None राजस्व की ओर से /Revenue By : Shri Sanjay Kumar, Cit-Dr सुनवाई की तारीख / Date Of Hearing : 19/06/2024 घोषणा की तारीख/Date Of Pronouncement : 19/06/2024 आदेश / O R D E R Per Bench : This Is An Appeal Filed By The Assessee Against The Order Dated 08.03.2024, Passed By The Cit(Exemption), Hyderabad In Din & Notice No.Itba/Exm/F/Exm45/2023-24/1062246514(1). 2. None Appeared On Behalf Of The Assessee Even The Case Was Called For The Second Round, However, An Adjournment Application Has Been Filed Seeking Adjournment. The Ground Taken For Adjournment, In Our Opinion, Is Not A Plausible One; Therefore, We Reject The Adjournment Application & Proceed To Dispose Off The Appeal Of The Assessee After Considering The Facts Of The Present Case & Submissions Of The Ld. Sr.Dr. 3. Ld. Cit-Dr Submitted That The Ld. Cit(E) Has Rightly Denied The Registration U/S.80G(5) Of The Act As The Application Of The Assessee- Society Was Filed Beyond The Prescribed Time Limit As Per The Finance Act

For Appellant: NoneFor Respondent: Shri Sanjay Kumar, CIT-DR
Section 12ASection 80G(5)

Rabindra Bharati Society, Kolkata vs. CIT(Exemption), Kolkata

The appeal of the assessee is allowed accordingly and the ld

ITA 278/KOL/2024[00]Status: DisposedITAT Kolkata13 Jun 2024

Bench: Shri Sanjay Garg & Shri Rakesh Mishrai.T.A. No.278/Kol/2024 Rabindra Bharati Society……..………....................…...……………....Appellant At 5 Dwarka Nath Tagore Lane, Post Office Jorasanko, District Kolkata, Pin 700007, West Bengal [Pan: Aabtr7964H] Vs. Cit(Exemptions, Kolkata.…….……………............................…..…..... Respondent Appearances By: Shri P. K. Ray & R.C Halder, Advocate, Appeared On Behalf Of The Assessee. Shri Rakesh Kumar Das, Cit-Dr, Appeared On Behalf Of The Revenue. Date Of Concluding The Hearing : June 06, 2024 Date Of Pronouncing The Order : June 13, 2024 आदेश / Order संजय गग", "या"यक सद"य "वारा / Per Sanjay Garg: The Present Appeal Has Been Preferred By The Assessee Against The Order Dated 22.12.2023 Of The Commissioner Of Income Tax (Exemption), Kolkata [Hereinafter Referred To As ‘Cit(Exemption)’] Rejecting The Application Of The Assessee For Final Approval As Per The Provisions Of Section 80G(5)(Iii) Of The Income Tax Act (Hereinafter Referred To As The ‘Act’). 2. The Brief Facts Of The Case Are That The Assessee Was Already Registered/Approved U/S 80G(5) Of The Act As A Charitable Institution Since 06.04.2022. However, An Amendment Was Brought Into The Relevant Provisions Of Section 80G Of The Act Vide Taxation & Other Laws (Relaxation & Amendment Of Certain Provisions) Act, 2020 (Hereinafter Referred To As ‘Amendment Act Of 2020’) With Effect From 01.04.2021 Whereby, An Institution, Which Has Already Been Approved

Section 80GSection 80G(5)Section 80G(5)(iii)