INTERNATIONAL SOCIETY OF DIVINE LOVE JAGADGURU DHAM ,MATHURA V. ITO,WARD (EXEMPTION), AGRA

ITA 527/AGR/2025

AI Insights

The case involves the International Society of Divine Love Jagadguru Dham Raman Reti, a trust registered under Section 12AA of the Income-tax Act, 1961, which appealed against the assessment order denying certain expenses as applications of income for charitable purposes. The trust had incurred expenses on bhandara (community feast) and relief to the poor, which were initially not recognized by the Assessing Officer and the National Faceless Appeal Centre (NFAC) as charitable activities. The Tribunal, however, concluded that the bhandara expenses should be considered as charitable, aligning with the definition of 'relief of the poor' under the Act.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 834479 (ITAT-AGRA)
• Duration Of Justice: 2 month(s) 17 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2018-2019
• Appeal Filed On: 17-11-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ANIL KUMAR
• Keywords: Charitable institution
• Section: 143(3); 12AA

Judgement Text

"Page | 1 INCOME TAX APPELLATE TRIBUNAL AGRA BENCH “SMC”: AGRA BEFORE SHRI M. BALAGANESH, ACCOUNTANT MEMBER ITA No.527/AGR/2025 (Assessment Year: 2018-19) International Society of Divine Love Jagadguru Dham Raman Reti, Vrindavan, Mathura- 281121 Vs. ITO, Ward (Exemption), Aayankar Bhawan, Sanjay Place, Agra (Appellant) (Respondent) PAN: AATI2546M Assessee by : None Revenue by: Shri Anil Kumar, Sr. DR Date of Hearing 23/01/2026 Date of pronouncement 03/02/2026 O R D E R 1. The appeal in ITA No. 527/AGR/2025 for AY 2018-19, arises out of the order of the ld National Faceless Appeal Centre (NFAC), Delhi [hereinafter referred to as ‘ld. CIT(A)’, in short] dated 25.09.2025 against the order of assessment passed u/s 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’) dated 08.03.2021 by the Assessing Officer, NeAC, Delhi (hereinafter referred to as ‘ld. AO’). 2. None appeared on behalf of the assessee despite issuance of notice. Hence I proceed to dispose of this appeal on hearing the Learned DR and based on materials available on record. 3. The only issue to be decided in this appeal is as to whether the bhandara expenses incurred by the Assessee could be construed as Printed from counselvise.com ITA No.527/AGR/2025 International Society of Divine Love Jagadguru Dham Raman Reti Page | 2 application of income for charitable purposes in the facts and circumstances of the instant case. 4. I have heard the Learned DR and perused the materials available on record. The Assessee Trust is duly registered under Section 12AA of the Act. The Assessee Trust had filed its return of income for assessment year 18-19 declaring total income of Rs. Nil on 08-09-2018. From the details filed by the Assessee Trust, the learned AO noted that Assessee Trust had debited expenses for Bhandara expenses in the sum of Rs. 7,47,203 and relief of the poor to the tune of Rs. 24,10,611. The learned AO on perusal of the objects of the Trust noted that these two activities were not part of the objects of the Trust and accordingly proceeded to deny both the items as application of funds for objects of the Trust. The learned AO accordingly re-computed the income of the Trust by ignoring these two items as application of income for charitable purposes and completed the assessment under Section 143(3) read with Sections 143(3A) and 143(3B) of the Act on 08-03-2021. The Assessee Trust challenged the assessment order before the learned NFAC. 5. The learned NFAC observed that the Assessee Trust had incurred expenditure of Rs. 24,10,611 on account of relief to the poor which falls in the definition of charitable purpose under Section 2(15) of the Act and accordingly deleted the addition to that extent. However, as far as Bhandara expenses in the sum of Rs. 7,47,203 is concerned, the learned NFAC observed that though distribution of food to the needy can be part of charitable activity, the Assessee Trust had failed to furnish cogent evidence showing that these expenses were incurred solely for the poor and not for general religious gatherings. The learned NFAC observed that these were organized as Bhandara programs which have more of religious / cultural Printed from counselvise.com ITA No.527/AGR/2025 International Society of Divine Love Jagadguru Dham Raman Reti Page | 3 flavour rather than targeted relief activity. Accordingly, the learned NFAC concluded that this activity was not spelt out in the Trust Deed and accordingly would be outside the ambit of charitable activity and confirmed the addition made by the learned AO. 6. I directed the learned DR to furnish the full copy of the Trust Deed on 21-1-2026 and the same was duly furnished by him on 23-1-2026. I find that the nature of Bhandara expenses represent distribution of food to the needy. This fact is not disputed by the lower authorities. Once it is accepted that food is distributed to the needy, it automatically falls within the ambit of ‘relief of the poor’ which is an accepted charitable activity even as per the learned NFAC. I find that the learned NFAC had merely suspected that the Assessee Trust had organized Bhandara programs which has religious / cultural flavour. This is purely a surmise and once it is accepted that food has been distributed only to the needy people, it does not matter where the said activity was done by the Assessee Trust. Hence I direct the learned AO to treat the amounts incurred on account of bhandara expenses in the sum of Rs 7,47,203 as an application of income for charitable purposes. Accordingly, the grounds raised by the Assessee are allowed. 7. In the result, the appeal of the Assessee is allowed. Order pronounced in the open court on 03/02/2026. -Sd/- (M. BALAGANESH) ACCOUNTANT MEMBER Dated: 03/02/2026 A K Keot Printed from counselvise.com ITA No.527/AGR/2025 International Society of Divine Love Jagadguru Dham Raman Reti Page | 4 Copy forwarded to 1. Applicant 2. Respondent 3. CIT 4. CIT (A) 5. DR:ITAT ASSISTANT REGISTRAR ITAT, New Delhi Printed from counselvise.com "