PATANI YUVA SAMAJ SEWA TRUST,BANASKANTHA V. THE CIT(EXEMPTION), AHMEDABAD

ITA 168/AHD/2025

AI Insights

The case involves Patani Yuva Samaj Sewa Trust appealing against the decision of the CIT (Exemption), Ahmedabad, which rejected their application for approval under section 80G(5) of the Income Tax Act, 1961. The CIT (Exemption) had denied the application based on the ground that one of the trust's objectives, which included installing and maintaining community halls for religious and national festivals, was considered religious in nature. The tribunal found that the objective was general and did not specifically promote any religion, thus overturning the CIT (Exemption)'s decision and remanding the case for a fresh evaluation.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717122 (ITAT-AHMEDABAD)
• Duration Of Justice: 6 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 23-01-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R. P. RASTOGI
• Assessee Lawyers: MEHUL THAKKAR
• Keywords: Set aside

Judgement Text

" आयकर अपीलीय अिधकरण, अहमदाबाद \u0011ायपीठ “बी“,अहमदाबाद । IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD \u0015ी संजय गग\u001a, \u0011ाियक सद\u001b एवं \u0015ी मकरंद वसंत महादेवकर, लेखा सद\u001b क े सम!। ] ] Before Shri Sanjay Garg, Judicial Member And Shri Makarand V. Mahadeokar, Accountant Member आयकर अपील सं /ITA No.168/Ahd/2025 िनधा \u000fरण वष\u000f /Assessment Year : N.A. Patani Yuva Samaj Sewa Trust Salempura Darwaja Jantanagar Road Jantanagar, Palanpur Banaskantha – 385 001 बनाम/ v/s. The CIT (Exemption) Ahmedabad – 380 015 \u0013थायी लेखा सं./PAN: AAETP 1570 G (अपीलाथ$/ Appellant) (%& यथ$/ Respondent) Assessee by : Shri Mehul Thakkar, AR Revenue by : Shri R.P. Rastogi, CIT-DR सुनवाई की तारीख/Date of Hearing : 18/08/2025 घोषणा की तारीख /Date of Pronouncement: 19/08/2025 आदेश/O R D E R Per Sanjay Garg, Judicial Member: The present appeal has been preferred by the assessee against the order of the Learned Commissioner of Income Tax (Exemption), Ahmedabad [hereinafter referred to as ‘Ld.CIT(E)’] dated 22/11/2024, rejecting the application of the assessee-trust for approval u/s.80G(5) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. At the outset, the Ld.Counsel for the assessee has invited our attention to the impugned order of the Ld.CIT(E) to submit that the main object of the assessee is eduction and enviornmental protection. That the Ld.CIT(E) Printed from counselvise.com ITA No.168/Ahd/2025 Patani Yuva Samaj Sewa Trust vs. The CIT(E) 2 rejected the application for approval of the assessee u/s.80G(5) of the Act on the ground that one of the objects of the assessee-trust was religious in nature. The said object pointed out by the ld.CIT(E), reads as under: ”To install, maintain and run community halls, Satsang Halls, Pray Halls, Wadi and to celebrate religious and national festivals.” 3. A perusal of the aforesaid object of the assessee-trust would reveal that the said object is a general in nature, i.e. to construct community-halls for various social/community funcitons including satsnag, prayers and to celebrate religious and national festivals. The above object, in our view, is a general object to construct halls for various social/community functions. The above object in no manner propagates any religion. Therefore, the finding of the Ld.CIT(E) that the aforesaid object is religious in nature is not correct. The denial of approval u/s.80G(5) of the Act, because of the aforesaid reason is not justified. Therefore, the impugned order of the Ld.CIT(E) is set aside and the matter is restored to file of the Ld.CIT(E) for decision afresh on the application of the assessee for approval u/s.80G(5) of the Act, with a direction to grant approval to the assessee-trust if the assessee is otherwise found eligible for the same irrespective of the aforesaid object. 5. In the result, appeal of the assessee is treated as allwoed for statistical purposes. Order pronounced in the Open Court on 19 /08/2025. Sd/- Sd/- (Makarand V. Mahadeokar) Accountant Member ( Sanjay Garg ) Judicial Member अहमदाबाद/Ahmedabad, िदनांक/Dated 19/08/2025 टी.सी.नायर, व.िन.स./T.C. NAIR, Sr. PS Printed from counselvise.com ITA No.168/Ahd/2025 Patani Yuva Samaj Sewa Trust vs. The CIT(E) 3 आदेश की #ितिलिप अ$ेिषत/Copy of the Order forwarded to : 1. अपीलाथ% / The Appellant 2. #&थ% / The Respondent. 3. संबंिधत आयकर आयु' / Concerned CIT 4. आयकर आयु' ) अपील ( / The CIT(E)- Ahmedabad 5. िवभागीय #ितिनिध , अिधकरण अपीलीय आयकर , अहमदाबाद /DR,ITAT, Ahmedabad. 6. गाड\u000f फाईल / Guard file. आदेशानुसार/ BY ORDER, स&ािपत #ित //True Copy// सहायक पंजीकार (Asstt. Registrar) आयकर अपीलीय अिधकरण, ITAT, Ahmedabad 1. Date of dictation (dictation pad is attached with the file)) : 18.8.2025 2. Date on which the typed draft is placed before the Dictating Member. : 18.8.2025 3. Date on which the approved draft comes to the Sr.P.S./P.S : 4. Date on which the fair order is placed before the Dictating Member for pronouncement. : 5. Date on which fair order placed before Other Member : 6. Date on which the fair order comes back to the Sr.P.S./P.S. : 19.8.25 7. Date on which the file goes to the Bench Clerk. : 19.8.25 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 Despatch of the Order : Printed from counselvise.com "