PUJA FOUNDATION,AHMEDABAD V. THE CIT(EXEMPTION), AHMEDABAD

ITA 341/AHD/2025

AI Insights

The case involves the Puja Foundation, which appealed against the decision of the CIT(Exemption), Ahmedabad, denying them registration under section 80G(5) of the Income Tax Act, 1961. The CIT(Exemption) had initially granted provisional registration but later denied the final registration, citing that the trust's activities were not purely charitable but also included religious activities, thus violating section 80G(5)(ii) & 80G(5B) of the Act. The Puja Foundation argued that their activities were solely charitable, focusing on education and medical aid without any religious expenditures. The ITAT found the CIT(Exemption)'s decision to be arbitrary and set aside the order, directing a re-evaluation of the trust's activities.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 717614 (ITAT-AHMEDABAD)
• Duration Of Justice: 5 month(s) 30 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 12-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 13-02-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside; Charitable institution
• Section: 80G

Judgement Text

" AHMEDABAD “B” BENCH Before: Shri T.R. Senthil Kumar, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member Puja Foundation C/22 Riveri Antilia, Corporate Road, Ahmedabad-380015 Gujarat PAN: AATFP1718R (Appellant) Vs CIT(Exemption), Ahmedabad (Respondent) Assessee Represented: Shri Parin S. Shah, A.R. Revenue Represented: Shri R. P. Rastogi, CIT-DR Date of hearing : 06-08-2025 Date of pronouncement : 12-08-2025 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 [hereinafter referred to as “CIT(E)”] denying registration under section 80G(5) of the Income Tax Act, 1961 (hereinafter referred to as “the Act”) on the ground that the activities of the Trust are not purely for charitable purpose but also for religious activities. ITA No. 341/Ahd/2025 Printed from counselvise.com I.T.A No. 341/Ahd/2025 Page No Puja Foundation vs. CIT(E) 2 2. The Grounds of Appeal raised by the Assessee are as follows: 1. The order passed by CIT (Exemption) is bad in law and required to be quashed. 2. Ld. CIT (Exemption) erred in rejecting application for registration u/s 80G(5) of the Act by observing that trust is charitable cum religious trust and thus violated provision of section 80G(5)(ii) & 80G(5B) of the Act. 3. Ld. CIT (Exemption) ought to have considered the fact and activities of the trust and ought to have granted registration. 4. Without prejudice to the above and in alternative, appellant trust pray to set aside the case with direction to verify activities of the trust and ought to have granted registration. 3. The Ld. Counsel submitted that the assessee Trust was created on 25-07-2016 for the purpose of Education, Medial Aid to the needy people irrespective of Caste, Creed and Religion. The assessee filed provisional registration u/s 12AB and u/s 80G which were granted by Ld.CIT(E) vide separate orders both dated 27-05- 2021 granting exemption from the Asst. Year 2021-22 to 2023-24. The assessee filed application for final registration u/s 80G(5) of the Act. Ld. PCIT issued a detailed notice asking for various details and activities carried out by the assessee Trust. 4. In reply, the assessee Trust filed all the required details including the questions relating to religious activities and explained that no expenditure incurred by the assessee Trust towards religious activities and furnished Audit Report for the Financial Years 2021-22, 2022-23 and 2023-24. The assessee Trust also filed copy of the Ledger account of all the expenditures towards the objects of the Trust relating to the preceding assessment years. The Printed from counselvise.com I.T.A No. 341/Ahd/2025 Page No Puja Foundation vs. CIT(E) 3 Ld. PCIT issued a show cause notice dated 20-12-2024 that the objects as well as other Clauses of the Trust is religious in nature which is violation of clause (3) of Section 80G(5) of the Act and why application for final registration not be denied. 4.1. In reply, the assessee Trust explained the main object of the Trust is to help the students by way of fees, books, equipments etc. and help the poor people. The assessee Trust has not undertaken any religious activity and no expenditure incurred during the last three years and produced copy of the bank pass book, statements and profit and loss account in support of its claim. However without verifying the same, Ld. CIT(E) denied the final registration u/s. 80G(5) of the Act to the assessee and also cancelled the provisional registration already granted. 5. Ld. D.R. appearing for the Revenue supported the order passed by the Ld. CIT(E). 6. We have perused the materials available on record and heard rival submission. Ld. CIT(E) in the impugned order reproduced the submissions of the assessee. However without verification of the accounts and no expenditure incurred by the assessee towards religious activities, Ld. CIT(E) denied the registration u/s 80G(5) of the Act which in our considered opinion, is highly arbitrary and the impugned order is liable to be set-aside. Thus the order passed by Ld. CIT(E) is hereby set-aside with a direction to Ld. CIT(E) to consider the materials available on record and grant registration Printed from counselvise.com I.T.A No. 341/Ahd/2025 Page No Puja Foundation vs. CIT(E) 4 u/s 80G(5) of the Act by providing one more opportunity of hearing to the assessee. 7. In the result, the appeal filed by the Assessee is allowed for statistical purpose. Order pronounced in the open court on 12 -08-2025 Sd/- Sd/- (NARENDRA PRASAD SINHA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER JUDICIAL MEMBER Ahmedabad : Dated 12/08/2025 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 Printed from counselvise.com "