RANIMA SARVAJANIK CHARITABLE TRUST,BHAVNAGAR V. THE CIT(EXEMPTION), AHMEDABAD

ITA 1447/AHD/2025

AI Insights

The case involves the Ranima Sarvajanik Charitable Trust appealing against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad, which denied them registration under section 80G(5) of the Income Tax Act, 1961. The CIT(E) had rejected the application on the grounds that the Trust was not purely charitable but also engaged in religious activities, exceeding the 5% limit prescribed for such activities under section 80G(5)(ii). The Tribunal noted that the CIT(E) had not considered the actual expenses incurred by the Trust on religious activities before making the decision. The Tribunal's decision to remand the case for further analysis was influenced by similar precedents in other cases.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 848818 (ITAT-AHMEDABAD)
• Duration Of Justice: 8 month(s) 10 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 27-03-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: Ahmedabad
• Assessment Year: misc
• Appeal Filed On: 17-07-2025
• Other Referred Cases: Shree Sattavis Kadva patidar Pragati Mandal vs. CIT(E), Gurukrupa Foundation vs. CIT(E)
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Charitable institution

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD “B” BENCH Before: Shri T.R. Senthil Kumar, Judicial Member And Shri Narendra Prasad Sinha, Accountant Member Ranima Sarvajanik Charitable Trust Plot No. 535, Manekwadi Circle, Krishnanagar, Bhavnagar-364001 PAN: AAATR8562Q (Appellant) Vs The CIT(Exemption), Ahmedabad (Respondent) Assessee Represented: Shri Mohit Balani, A.R. Revenue Represented: Shri R P Rastogi, CIT-DR Date of hearing : 25-03-2026 Date of pronouncement : 27-03-2026 आदेश/ORDER PER: T.R. SENTHIL KUMAR, JUDICIAL MEMBER This appeal is filed by the Assessee as against the order of rejection 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. The registry has noted that there is a delay of 139 days in filing the above appeal. It is explained that the previous Tax Consultant has not informed the rejection order passed by Ld. CIT(E), when the same was came to the knowledge of the Trustees, ITA No: 1447/Ahd/2025 Printed from counselvise.com I.T.A No. 1447/Ahd/2025 Ranima Sarvajanik Charitable Trust. Vs. CIT(E) 2 appeal was filed with a delay of 139 days. Considering the submissions of the assessee, the delay of 139 days in filing the appeal is hereby condoned. 3. Ld. CIT(E) rejected the registration u/s. 80G(5) of the Act on the ground that the assessee is not a purely charitable Trust but religious-cum-charitable Trust and violated conditions under 80G(5)(ii) of the Act. 4. At the outset, Ld. Counsel appearing for the assessee submitted that the assessee got approval u/s. 12AB on 12-02-2026 for the Asst. Years 2027-28 to 2036-37. Whereas by this impugned order dated 18-12-2024 denied registration u/s. 80G(5) of the Act on the ground of religious activities. The assessee also submitted it has not done any religious activities above the prescribed limit of 5% which was not examined by the Ld. CIT(E) before denial of registration. The assessee also produced before us Profit and Loss accounts and Balance Sheet in support of its claim. 5. Considering the submission of the assessee and Ld. CIT(E) has not considered the expenses incurred by the assessee for religious purposes. We deem it fit to set-aside the impugned order to the file of Ld. CIT(E) with a direction to carry out necessary analysis in this respect and thereafter pass the order in accordance with law. Since, similar view taken by the Co-ordinate Bench of this Tribunal in the case of Shree Sattavis Kadva patidar Pragati Mandal vs. CIT(E) in ITA No. 414/Ahd/2023 vide order dated 08-05-2024 and Gurukrupa Foundation vs. CIT(E) reported in [2025] 172 taxmann.com 737 has also taken an identical view in the matter. Printed from counselvise.com I.T.A No. 1447/Ahd/2025 Ranima Sarvajanik Charitable Trust. Vs. CIT(E) 3 Therefore, the matter is restored to the file of the Id. CIT(E), who should examine the matter and give a categorical finding on the applicability of provision of section 80G(5B) of the Act or otherwise. If the expenditure incurred by the assessee on religious purposes is found to be within the prescribed limit of 5% of its total income, then the approval as sought for u/s 80G(5) of the Act should be allowed to the assessee. 6. In the result, the appeal filed by the Assessee is treated as allowed for statistical purpose. Order pronounced in the open court on 27 -03-2026 Sd/- Sd/- (NARENDRA PRASAD SINHA) (T.R. SENTHIL KUMAR) ACCOUNTANT MEMBER True Copy JUDICIAL MEMBER Ahmedabad : Dated 27/03/2026 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 "