JIVANDEEP FOUNDATION,VADODARA V. THE CIT(EXEMPTION), AHMEDABAD

ITA 177/AHD/2025

AI Insights

The case involves the Jivandeep Foundation, a Trust established for various charitable purposes, which appealed against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad. The Commissioner had denied the Trust's application for registration under section 80G(5) of the Income Tax Act, 1961, primarily because the Trust had made a donation of Rs. 1,00,000 to a political party, which was not substantiated with adequate evidence to show that it was used for the Trust's charitable objectives. The Trust argued that the donation was intended to support cultural and nation-building activities, but the Tribunal found these claims unsubstantiated due to the lack of documentary evidence.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 126631 (ITAT-AHMEDABAD)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 23-04-2025
• Appeal Filed By: Assessee
• Order Result: Dismissed
• Bench Allotted: D
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Keywords: Set aside; Charitable institution; Grounds of appeal; No evidence; Dismissed; Commissioner; Commissioner of Income Tax; Registration under section 80G(5); Exempt; Services; Reconsider
• Section: 80G

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “D” BENCH Before: DR. BRR Kumar, Vice President And Shri T. R. Senthil Kumar, Judicial Member Jivandeep Foundation GF-22, Classic Complex, Akota Garden Char Rasta, Productivity Road, Akota, Vadodara-390020 PAN: AACTJ3864H (Appellant) Vs Commissioner of Income Tax (Exemption) Ahmedabad (Respondent) Assessee Represented: Shri Samir Parikh, A.R. Revenue Represented: Shri Prathvi Raj Meena, CIT-DR Date of hearing : 21-04-2025 Date of pronouncement : 23-04-2025 आदेश/ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- This appeal is filed by the Assessee as against the order dated 28.12.2024 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying registration under section 80G(5) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. Brief facts of the case is that the assessee is a Trust created on 09-03-2016 with the main object of providing education, health, cultural activities, social services and rural developments for the ITA No: 177/Ahd/2025 I.T.A No. 177/Ahd/2025 Page No Jivandeep Foundation vs. CIT(E) 2 Public at Large. The assessee filed Form 10AB for registration u/s. 80G(5) of the Act. The Ld. CIT(E) found that the assessee Trust had made donation to political party of Rs.1,00,000/- during the Financial Year 2022-23 as per the Audit Report. Therefore issued a show cause notice to explain the expenditure made as is per the object of the Trust. In reply, the assessee stated that the donation to political party was made for the object of the Trust namely Cultural activities and Nation Building activities such as Celebration of Independence Day on 15th August, 2022, distribution of National Flag to Public at Large under the scheme of “Har Ghar Tiranga-Azadi Ke Amrit Mahotsav”, etc. 3. The Ld. CIT(E) considered the above submissions of the assessee and held that the donation was made to support Cultural activities and National Building activities, but the assessee failed to submit documentary evidences in support of the same and thereby denied registration u/s. 80G(5)(iii) of the Act. 4. Aggrieved against the same, assessee is in appeal before us raising the following Grounds of Appeal: “1. The learned Hon. CIT Exemption is not correct in rejecting approval u/s 80G (5) of the Income Tax Act. 2. The learned Hon. CIT Exemption is not correct in stating that the activity of the trust is not genuine on the ground that the appellant trust is failed to file documentary evidences regarding donation to political party. 3. Appellant trust pray that all the conditions laid down for approval under section 80G is fully satisfied, appeal of the appellant be allowed. 4. Appellant trust pray to allow the appeal of Appellant and grant the approval under clause -80(G) (5) (iii) of Income tax Act, 1961. I.T.A No. 177/Ahd/2025 Page No Jivandeep Foundation vs. CIT(E) 3 5. Alternatively, appeal be allowed by set aside the order and matter referred back to the desk of Hon. CIT Exemption for reconsideration. 6. Appellant Craves leave to add, alter or amend any of the grounds of appeal mentioned above, either at or before the time of hearing.” 5. The Ld. Counsel appearing for the assessee submitted as follows: “a) As per the requirements of section 80G(5), the Trust has made every effort to ensure compliance with the conditions specified, including maintaining proper books of accounts, filing income tax returns, and ensuring that the funds are applied solely for charitable purposes b) The Trust has complied with the conditions specified in clauses (i) to (v) of section 80G(5) of the Income Tax Act, 1961. The donation was made to a political party under the belief that the funds would support cultural and nation-building activities; however, it was an inadvertent mistake by the Trust, and such donations were not intended for any political agenda but rather for activities aimed at fostering public welfare. c) It is respectfully submitted that the donation made to the political party was purely for non-political, social, and cultural purposes, such as organizing Independence Day celebrations and promoting national unity, which is in line with the Trust's objectives. d) While the Trust acknowledges that donations to political parties are generally not eligible for deductions under section 80G, we submit that the donation was made in good faith for purposes directly related to the welfare of the community, and the Trust undertakes that such donations will not recur in the future.” 6. The above submissions of the assessee are without proper materials and no evidences placed before us in support of the claim made by the assessee that the amount of Rs. 1,00,000/- used for the Celebration of Independence Day. In the absence of the same, we do not find any merits in the claim made by the assessee Trust. I.T.A No. 177/Ahd/2025 Page No Jivandeep Foundation vs. CIT(E) 4 Thus the ground raised by the assessee is devoid of merits and the same is liable to be dismissed. 6. In the result, the appeal filed by Assessee is dismissed. Order pronounced in the open court on 23-04-2025 Sd/- Sd/- (DR. BRR KUMAR) (T.R. SENTHIL KUMAR) VICE PRESIDENT JUDICIAL MEMBER Ahmedabad : Dated 23/04/2025 आदेश कȧ ĤǓतͧलͪप अĒेͪषत / Copy of Order Forwarded to:- 1. Assessee 2. Revenue 3. Concerned CIT 4. CIT (A) 5. DR, ITAT, Ahmedabad 6. Guard file. By order/आदेश से, उप/सहायक पंजीकार आयकर अपीलȣय अͬधकरण, अहमदाबाद "