NAVSARI DHODIA GNAYATI PANCH,NAVSARI V. CIT(EXEMPTION), AHMEDABAD

ITA 164/SRT/2025

AI Insights

The case involves the Navsari Dhodia Gnayati Panch, a trust that filed an application in Form No. 10AB seeking approval under section 80G(5)(iii) of the Income-tax Act, 1961. The application was initially rejected by the Commissioner of Income-tax (Exemptions), Ahmedabad, on the grounds that the trust's objects were religious in nature, categorizing it as a religious-cum-charitable trust, which did not meet the criteria of being a purely charitable trust as required under section 80G(5) of the Act. The trust appealed this decision to the Income Tax Appellate Tribunal, Surat.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 833500 (ITAT-SURAT)
• Duration Of Justice: 11 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: DB
• Assessment Year: misc
• Appeal Filed On: 13-02-2025
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: MUKESH JAIN
• Assessee Lawyers: NILESH PATEL
• Keywords: Charitable institution

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL SURAT BENCH, SURAT BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT MS. SUCHITRA KAMBLE, JUDICIAL MEMBER I.T.A. No. 164/SRT/2025 (Assessment Year: - ) Navsari Dhodia Gnayati Panch, Navsari Nr. Police Line, Dasera Takery, Navsari-396445 [PAN : AAATN 8668 F] Vs. The Commissioner of Income-tax (Exemptions), Ahmedabad (Appellant) .. (Respondent) Appellant by : Shri Nilesh Patel, AR Respondent by: Shri Mukesh Jain, CIT-DR Date of Hearing 23.01.2026 Date of Pronouncement 03.02.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- The captioned appeal has been filed by the assessee against the order passed by the Ld. Commissioner of Income Tax (Exemption), Ahmedabad (hereinafter referred to as the ‘Ld. CIT (E)’ for short), vide order dated 26.12.2024, rejecting the application filed by the assessee in Form No. 10AB for approval u/s 80G(5)(iii) of the Income-tax Act, 1961 (hereinafter referred to as “the Act” for short). 2. The brief facts of the case are that the assessee had filed an application in Form No. 10AB on 27.06.2024 seeking approval u/s 80G(5)(iii) of the Act. Upon examination of the objects of the trust as set out in its instrument of creation, the Ld. CIT(E) observed that the objects were religious in nature, thereby categorising the assessee as a composite trust, i.e., a religious-cum-charitable trust. On this basis, the Ld. CIT(E) rejected the assessee’s application for approval u/s 80G(5) of the Act, holding that the assessee did not satisfy the principal condition prescribed therein, i.e. the assessee-trust should be a purely charitable trust. Printed from counselvise.com ITA No. 164/SRT/2025 Navsari Dhodia Gnayati Panch Vs. CIT(E) Asst. Year : - - 2– 3. Aggrieved by the order of the Ld. CIT(E), the assessee filed the preset appeal before the Tribunal. 4. At the outset, we note that in response to the show-cause notice (SCN) dated 03.12.2024 issued by the Ld. CIT(E), the assessee neither filed any submission nor sought any adjournment. Consequently, the Ld. CIT(E) rejected the assessee’s application on the ground that the objects as contained in the instrument of creation are religious in nature, thereby categorising the assessee as a composite trust, i.e., a religious-cum-charitable trust. Before us, the Ld. AR submitted that although one of the objects of the trust is of a religious-cum- charitable nature, the trust is primarily engaged in charitable activities. It was further submitted that, if an opportunity is granted, the assessee would place on record the necessary documentary evidence in support of its charitable activities before the Ld. CIT(E). On the other hand, the Ld. Departmental Representative (DR) contended that the assessee-trust/institution is required to furnish the requisite details, explanations, and submissions before the Ld. CIT(E) for proper examination. 5. Having considered the facts and circumstances of the case, we are of the considered opinion that the interests of justice would be met by restoring the matter to the file of the Ld. CIT(E) for fresh consideration of the application and for passing a speaking order in accordance with law after taking into account the submissions and explanations to be furnished by the assessee. 6. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 03.02.2026 Sd/- Sd/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT Surat; Dated 03/02/2026 btk Printed from counselvise.com ITA No. 164/SRT/2025 Navsari Dhodia Gnayati Panch Vs. CIT(E) Asst. Year : - - 3– आदेश की \u0007ितिलिप अ ेिषत/Copy of the Order forwarded to : 1. अपीलाथ\u0011 / The Appellant 2. \u0007\u0012थ\u0011 / The Respondent. 3. संबंिधत आयकर आयु\u001a / Concerned CIT 4. आयकर आयु\u001a ) अपील ( / The CIT(A)- 5. िवभागीय \u0007ितिनिध , अिधकरण अपीलीय आयकर , /DR,ITAT, Surat, 6. गाड! फाईल / Guard file. आदेशानुसार/ BY ORDER, TRUE COPY सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण ITAT, Surat 1. Date of dictation …dictated in the open court on..…02.02.2026….….. 2. Date on which the typed draft is placed before the Dictating Member … …02.02.2026………… 3. Other Member…….02.02.2026…………… 4. Date on which the approved draft comes to the Sr.P.S./P.S …. . 02.02.2026…………. 5. Date on which the fair order is placed before the Dictating Member for pronouncement ..03.02.2026........ 6. Date on which the fair order comes back to the Sr.P.S./P.S …03.02.2026…..…………. 7. Date on which the file goes to the Bench Clerk ….03.02.2026….….…. 8. Date on which the file goes to the Head Clerk…………………………………... 9. The date on which the file goes to the Assistant Registrar for signature on the order 10. Date of Dispatch of the Order…………………………………… Printed from counselvise.com "