MEENA SAMAJ SEVA SAMITI TRUST,GANDHIDHAM V. CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

ITA 90/RJT/2025

AI Insights

The case involves Meena Samaj Seva Samiti Trust, which appealed against the decision of the Commissioner of Income-tax (Exemption), Ahmedabad, who denied the trust's application for approval under section 80G(5)(iii) of the Income-tax Act, 1961, and cancelled its provisional approval. The CIT(E) had found that the trust's objects were religious in nature, thus violating the conditions of section 80G(5). The trust argued that it serves the Scheduled Tribe community, specifically 'Bhil-Meena', and does not cater to any particular caste or community. The Tribunal found merit in the trust's argument and directed a re-examination of the case.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 780175 (ITAT-RAJKOT)
• Duration Of Justice: 8 month(s) 7 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: 2024-2025
• Appeal Filed On: 31-01-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: PALLAVI; LD.
• Assessee Lawyers: MEHUL RANPURA; LD
• Keywords: Opportunity of being heard; Charitable institution; Non compliance
• Section: 10; 80G

Judgement Text

"आयकर अपीलȣय अͬधकरण, राजकोट Ûयायपीठ, राजकोट। IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER AND SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं/.ITA No.90/RJT/2025 Ǔनधा[रण वष[ / Assessment Year: 2024-25 Meena Samaj Seva Samiti Trust Gandhidham, Plot No.18, Off ½ Ward No.7/B, Nr. Kidzee School, Gandhidham(Kutch)-370 201 बनाम/ Vs. Commissioner of Income-tax (Exemption), Ahmedabad, Room No.609, 6th Floor, Aayakar Bhavan, (Vejalpur) Nr. Sachin Tower, 100 Foot Road, Anandnagar-Prahladnagar Road, Ahmedabad-380 015 èथायीलेखासं./जीआइआरसं./PAN/GIR No.: AAETM7969C अपीलाथȸ/Appellant) (Ĥ×यथȸ/Respondent) Ǔनधा[ǐरती कȧ ओर से/Assessee by : Shri Mehul Ranpura, ld.AR राजèव कȧ ओर से/Revenue by : Smt. Pallavi, Ld.CIT-DR सुनवाई कȧ तारȣख /Date of Hearing : 05/08/2025 घोषणा कȧ तारȣख /Date of Pronouncement : 08/10/2025 आदेश / O R D E R Per, Dr. Arjun Lal Saini, Accountant Member: Captioned appeal filed by the assessee, against the order passed by the Ld. Commissioner of Income-tax(Exemption), Ahmedabad [in short ‘Ld.CIT(E)’ dated 21.11.2024 wherein the Ld.CIT(E) has denied the approval under section 80G(5)(iii) of the Income-tax Act, 1961(hereinafter referred to as ‘the Act’) and also cancelled the provisional approval of the assessee-trust. 2. Grievances raised by the assessee, which, being interconnected, will be taken up together, are as follows: “1. The grounds of appeal mentioned hereunder are without prejudice to one another. Printed from counselvise.com ITA No.90/Rjt/2025 (A.Y.24-25) Meena Samaj Seva Samiti Trust 2 2. On the facts and in circumstances of the case as well as law on the subject, the learned Commissioner of Income-tax (Exemption) [hereinafter referred to as the “CIT(E)”] erred in rejecting application for registration u/s 80G(5) of the Act. 3. On the facts and in circumstances of the case as well as law on the subject, the learned CIT(E) erred in rejecting application for registration u/s 80G(5) on the alleged ground that the appellant has violated main condition of sub-section (5) of the section 80G of the Act, though there is no such violation. The learned CIT(E) may kindly be directed to grant registration u/s 80G(5)(iii) of the Act. 4. Your honour’s appellant craves leave to add, to amend, alter, or withdraw any or more grounds of appeal on or before the hearing of appeal.” 3. Succinctly, the factual panorama of the case is that assessee before us is a Trust. The assessee- trust filed an application for approval under clause (iii) of first proviso to sub-section (5) of section 80G of the Income Tax Act, 1961, in Form No.10AB electronically. Therefore, the Ld.CIT(E), having examined assessee's application, issued a show-cause notice to the assessee-trust to submit relevant documents and evidences. In response to the notice, the assessee submitted its reply stating that the assessee-trust is not for the benefit of particular caste or community, and the activities are undertaken by the assessee-trust, for the upliftment of the general public. The assessee-trust has filed submission on 23.08.2024 before learned CIT(E ). Thereafter a show cause notice was issued by Ld.CIT(E), on 09.11.2024, which is reproduced below “Please refer to the online application, in Form No.10AB, filed by you and the subsequent questionnaires dated 13.08.2024 issued to you. In the aforesaid notice/letter certain details/information/clarifications were sought for and in response to the same, you have submitted certain details. 2. On perusal of such details, your kind attention is drawn toward the object of trust deed “Constitution” Printed from counselvise.com ITA No.90/Rjt/2025 (A.Y.24-25) Meena Samaj Seva Samiti Trust 3 2.1 From the above, it can be observed that the above referred object is are religious in nature and not only charitable in nature as per section 80G(5) of Income-tax Act, 1961. 3. In this regard, you are requested to show cause as to why your application filed in Form 10AB, should not be rejected for the reasons discussed in the above para. 4. Further, you are requested to note that in case of non compliance/part compliance of said notice, the matter will be decided on the basis of facts/material available on record. Please note that this is a final opportunity and no requests for adjournment will be entertained.” 4. In response to the above notice, the assessee submitted before ld.CIT(E) that there are general objects of the trust and activities are undertaken for the upliftment of the general public and there is no inclination towards any particular caste, creed or religion. Though it is mentioned in the memorandum but the activities of the trust do not give preferences to any such religious nature. The trust undertakes activities, which are beneficial to the whole society at large and hence the application filed in Form 10AB should not be rejected. 5. However, Ld.CIT(E) did not consider the above assessee's reply and held that on plain reading of the objects of the trust, it is evident that the said objects are religious in nature involving religious awakening and hence, it clearly contravenes main condition of 80G(5) of the Act. The ld.CIT(E) noted that for the purpose of section 80G(5) of the Act, the trust can only have charitable purpose and no religious or religious-cum-charitable purpose is allowed thereunder. Further, the applicant has not filed any evidence establishing removal/amendment of its religious object. Therefore, there is clear violation of clause(ii) of section 80G(5) of the Act, which put a bar on granting approval under section 80G(5) of Income Tax Act, 1961 to the institution or fund whose instrument of constitution or rule thereunder provide for transfer or application at any time the whole or any part of its income or assets for any purpose other than a charitable purpose. In view of the above, it is quite clear that assessee Printed from counselvise.com ITA No.90/Rjt/2025 (A.Y.24-25) Meena Samaj Seva Samiti Trust 4 trust is not established only for charitable purposes. Whereas the above referred provisions of section 80G of the Act makes it amply clear that the applicant/assessee has to be established only for charitable purposes and there is no transfer or application of funds for any purposes other than a charitable purpose, subject to concession granted under Sec. 80G(5B) of the Act. Therefore, Ld.CIT(E) has denied the approval under section 80G(5)(iii) of the Income-tax Act, 1961 (hereinafter referred to as “the Act') and also cancelled the provisional approval of the assessee-trust. 6. Aggrieved by the order of Ld.CIT(E), assessee is in appeal before us. 7. Shri Mehul Ranpura, Learned Counsel for the assessee, at the outset \"Scheduled Tribe\" that is, submitted that assessee-trust belong to \"Meena/BhilMeena and falls in the definition of \"Bhil- Meen\". Therefore, as per Explanation (1) of Section 80G of the Act such Scheduled Tribe, assessee- trust, is not for the benefit of any particular caste or community. For this, the Ld. Counsel for the assessee took us through Explanation(1) of Section 80G(5) of the Act, which reads as follows: 80G. [(1) In computing the total income of an assessee, there shall be deducted, in accordance with and subject to the provisions of this section,- (6)[***] Explanation 1.-An institution or fund established for the benefit of Scheduled Castes, backward classes, Scheduled Tribes or of women and children shall not be deemed to be an institution or fund expressed to be for the benefit of a religious community or caste within the meaning of clause (iii) of sub-section (5)” 8. The Ld. Counsel for the assessee further took us through the Notification of the Government of India, wherein “Bhill- Meena” has been classified as Scheduled Tribe as per Explanation(1) of Section 80G(5) of the Act. The relevant notification is reproduced below: Printed from counselvise.com ITA No.90/Rjt/2025 (A.Y.24-25) Meena Samaj Seva Samiti Trust 5 THE CONSTITUTION (SCHEDULED TRIBES) ORDER, 1950 C.O. 22 In exercise of the powers conferred by clause (1) of article 342 of the Constitution of India, the President, after consultation with the Governors and Rajpramukhs of the States concerned, is pleased to make the following Order, namely:-- 1. This Order may be called the Constitution (Scheduled Tribes) Order, 1950. 2. The Tribes or tribal communities, or parts of, or groups within, tribes or tribal communities, specified in 2 [Parts I to 3 [XXII] of the Schedule to this Order shall, in relation to the States to which those Parts respectively relate, be deemed to be Scheduled Tribes so far as regards members thereof residents in the localities specified in relation to them respectively in those Parts of that Schedule. [3. Any reference in this Order to State or to a district or other territorial division thereof shall be construed as a reference to the State, district or other territorial division as constituted on the 1st day of May, 1976.] Constitution (Scheduled Tribes) Order, 1950 (PART III.—Rules and Orders under the Constitution) [PART VIII.—Madhya Pradesh 1. Agariya 2. Andh 3. Baiga 4. Bhaina 5. Bharia Bhumia, Bhuinhar Bhumia, Bhumiya, Bharia, Paliha, Pando 6. Bhattra 7. Bhil, Bhilala, Barela, Patelia 8. Bhil Mina 9. Bhunjia 10. Biar, Biyar 11. Binjhwar 12. Birhul, Birhor 13. Damor, Damaria 14. Dhanwar 15. Gadaba, Gadba 16. Gond; Arakh, Arrakh, Agaria, Asur, Badi Maria, Bada Maria, Bhatola, Bhimma, Bhuta, Koliabhuta, Koliabhuti, Bhar, Bisonhorn Maria, Chota Maria, 17. Halba, Halbi 18. Kamar 19. Karku 20. Kawar, Kanwar, Kaur, Cherwa, Rathia, Tanwar, Chhatri *** 22. Khairwar, Kondar 23. Kharia 24. Kondh Khond, Kandh 25. Kol 26. Kolam 27. Kokru, Bopchi, Mouasi, Nihal, Nahul Bondhi, Bondeya 28. Korwa, Kodaku 29. Majhi 30. Majhwar 31. Mawasi 2 *** 33. Munda 31. Mawasi 2 *** 35. Oraon, Dhanka, Dhangad 36. Panika (in Chhatarpur, Datia, Panna, Rewa, Satna, Shahdol, Sidhi and Tikamgarh districts) 37. Pao 38. Pardhan, Pathari, Saroti *** 40. Pardhi; Bahelia, Bahellia, Chita Pardhi, Langoli Pardhi, Phans, Pardhi, Shikari,Dandami Maria, Dhuru, Dhurwa, Dhoba, Dhulia,Dorla, Gaiki, Gatta, Gatti, Gaita, Gond Gowari,Hill Maria Kandra, Kalangar, Khatola, Koitar, Koya, Khirwar,Khirwara, Kucha Maria, Kuchaki Maria, Madia, Maria, Mana, Mannewar, Moghya, Mogia, Monghya, Mudia, Muria, Nagarchi, Nagwanshi, Ojha, Raj, Sonjhari Jhareka, Thatia, Thotya, Wade Maria, Vade Maria, Daroi Takankar, Takia [in (1) Bastar, Chhindwara, Mandra, Raigarh, Seoni and surguja districts, (2) Baihar tahsil of Balaghat district, (3) Betul and Bhainsdehi tehsils of Betul district, (4) Bilaspur and Katghora tahsils of Bilaspur district, (5) Durg and Balod tahsils of Durg district, (6) Chowki, Manpur and Mohala Revenue Inspectors' Circles of Rajnandgaon district, (7) Murwara, Patan and Sihora tahsils of Jabalpur district, (8) Hoshangabad and Sohagpur tahsils of Hoshangabad district and Narsimhapur district, (9) Harsud tahsil of Khandwa district, (10) Bindra Nawagarh Dhamtari and Mahasamund tahsils of Raipur district] 41. Parja 42. Saharya, Saharia, Seharia, Sehria, Sosia, Sor Printed from counselvise.com ITA No.90/Rjt/2025 (A.Y.24-25) Meena Samaj Seva Samiti Trust 6 43. Saonta, Saunta 44. Saur 45. Sawar, Sawara 46. Sonr.] _____________________________________________________________________________ ___ 1. Ins. by Act 29 of 2000, s. 25 and the Sixth Sch. (w.e.f. 9-11-2000). 2. Ins. by Act 30 of 2000, s. 24 and the Sixth Sch. (w.e.f. 15-11-2000) 3. Ins by Act 10 of 2003, s. 4 and the Second Sch. 185 Constitution (Scheduled Tribes) Order, 1950 (PART III.—Rules and Orders under the Constitution) PART IV.—Gujarat 1. Barda 2. Bavacha, Bamcha 3. Bharwad (in the Nesses of the forest of Alech, Barada and Gir) 4. Bhil, Bhil Garasia, Dholi Bhil, Dungri Bhil, Dungri Garasia, Mewasi Bhil, Rawal Bhil, Tadvi Bhil, Bhagalia, Bhilala, Pawra, Vasava, Vasave 5. Charan (in the Nesses of the forests of Alech, Barada and Gir) 6. Chaudhri (in Surat and Valsad districts) 7. Chodhara 8. Dhanka, Tadvi, Tetaria, Valvi 9. Dhodia 1 [Dhodi] 10. Dubla, Talavia, Halpati 11. Gamit, Gamta, Gavit, Mavchi, Padvi 12. Gond, Rajgond 13. Kathodi, Katkari Dhor Kathodi, Dhor Katkari, Son Kathodi, Son Katkari 14. Kokna, Kokni, Kukna *** 16. Koli Dhor, Tokre Koli, Kolcha, Kolgha 17. Kunbi (in the Dangs disrict) 18. Naikda, Nayaka, Cholivala Nayaka, Kapadia Nayaka, Mota Nayaka, Nana Nayaka 19. Padhar *** 21. Pardhi, Advichincher, Phanse Pardhi (excluding Amreli, Bhavnagar, Jamnagar, Junagadh, Kutch, Rajkot and Surendranagar districts) 22. Patelia 23. Pomla 24. Rabari (in the Nesses of the forests of Alech, Barada and Gir) 25. Rathawa 26. Siddi, [Siddi-Badshan] (in Amreli, Bhavnagar, Jamnagar, Junagadh, Rajkot and Surendranagar districts) *** 28. Varli 29. Vitolia, Kotwalia, Barodia [30. Bhil, Bhilala, Barela, Patelia 31. Tadvi Bhil, Pawra, Vasave 32. Padvi]. 9. Therefore, Ld. Counsel for the assessee submitted that \"Meena Samaj Seva Trust\" is not for any particular community and caste, therefore the approval u/s 80G(5)(iii) of the Act should be granted to the assessee-trust. 10. On the other hand, Ld. CIT-DR for the Revenue submitted that the assessee- trust is not running any charitable activity but it is for religious purposes, only I for particular caste that is \"Meena Samaj\". Therefore, most of the objects are religious in a nature. Therefore, the registration should not be granted to the assessee-trust. In addition to this, the notification of the government in respect Printed from counselvise.com ITA No.90/Rjt/2025 (A.Y.24-25) Meena Samaj Seva Samiti Trust 7 of Scheduled Tribes, should be examined by the learned CIT(E), therefore, matter may be remitted back to the file of the learned CIT(E) for examination of the notification (referred by the learned Counsel for the assessee), and then after adjudicate the issue in accordance with law. 11. We have carefully considered the facts of the case, the submission of the Id. Counsel for the assessee and ld.CIT-DR for the Revenue and evidences on record. We note that the “Bhil-Meena/Meena” has been defined as a Scheduled Tribes, by the CONSTITUTION (SCHEDULED TRIBES) ORDER, 1950, the list of the same has been referred above. Therefore, we note that the assessee- trust was made for the purpose of Scheduled Tribes, (Bhil Meena), which is not for the purpose of special community and caste. Therefore, we direct the Ld.CIT(E) to examine the Government notification “CONSTITUTION (SCHEDULED TRIBES) ORDER, 1950,\" and if the assessee- trust falls in the definition of Scheduled Tribes, (Bhil Meena), the approval should be granted to the assessee- trust, under section, 80G(5)(iii) of the Income-tax Act, 1961, in accordance with law. The assessee is also directed to submit a copy of government notification(CONSTITUTION (SCHEDULED TRIBES) ORDER, 1950) before the learned CIT(E) and other relevant documents and evidences for approval under section 80G(5)(iii) of the Income-tax Act, 1961. It is needless to say that the assessee will be at liberty to adduce any evidences as deemed relevant before the ld.CIT(E) at the time of proceedings before him, in consequence to this order and the ld.CIT (E) shall allow the assessee, adequate opportunity of being heard and to make relevant submissions, and then pass a speaking order which is fair and judicious. For statistical purposes, the appeal of the assessee is treated to be allowed. Printed from counselvise.com ITA No.90/Rjt/2025 (A.Y.24-25) Meena Samaj Seva Samiti Trust 8 12. In the result, filed by the assessee is allowed for statistical purposes, in above terms. Order is pronounced in the open court on 08/10/2025. Sd/- Sd/- (DINESH MOHAN SINHA) (DR.ARJUN LAL SAINI) ÛयाǓयक सदèय/JUDICIAL MEMBER लेखा सदèय/ACCOUNTANT MEMBER राजकोट /Rajkot Ǒदनांक/ Date: 08/10/2025 DKP Outsourcing Sr.P.S आदेश कȧ ĤǓतͧलͪप अĒेͪषत/ Copy of the order forwarded to :  अपीलाथȸ/ The Assessee  Ĥ×यथȸ/ The Respondent  आयकर आयुÈत/ CIT  आयकर आयुÈत(अपील)/ The CIT(A)  ͪवभागीय ĤǓतǓनͬध, आयकर अपीलȣय आͬधकरण, राजकोट/ DR, ITAT, RAJKOT  गाड[ फाईल/ Guard File By order/आदेश से, सहायक पंजीकार आयकर अपीलȣय अͬधकरण ,राजकोट Printed from counselvise.com "