SARVABHAOOM HINDU DHARAM SRICHOBEES AVTAR TATWAGYAN MANDIR TRUST DEPALPUR,INDORE V. CIT EXEMPTION, BHOPAL, BHOPAL

ITA 810/IND/2024

AI Insights

The case involves the Sarvabhaoom Hindu Dharam Srichobees Avtar Tatwagyan Mandir Trust, which appealed against the decision of the Commissioner of Income-Tax (Exemption), Bhopal, rejecting their application for final approval under section 80G(5) of the Income-tax Act, 1961. The Trust argued that it is a 'charitable-cum-religious entity' and not solely a 'religious entity', which would disqualify it from the benefits under section 80G(5)(ii). The Tribunal acknowledged the Trust's dual nature and accepted the possibility of the Trust qualifying for the benefits under section 80G(5B), provided the expenses on religious activities were within the permissible limit of 5% of the total income. The matter was remanded for a thorough examination of the Trust's financials to ascertain compliance with section 80G(5B).

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 772071 (ITAT-INDORE)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-08-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: misc
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: FORASSESSEEATFIRSTDREWUSTOPARAOFIMPUGNEDORDERAND; FORASSESSEEAGREEDTOTHESUBMISSIONSOFLD.; FORREVENUEWHICHISALSOACCEPTEDBYLD; FORASSESSEE.THEREFORE; INTHEEND; WEREMANDTHISMATTERTOTHEFILEOFCIT E; SHRIRAGHUNATH
• Assessee Lawyers: SHRIASHISHGOYALANDN.D.PATWA; ARS
• Section: 12AA; 80G

Judgement Text

"Page 1 of 8 आयकरअपीलीयअिधकरण, इंदौरɊायपीठ, इंदौर IN THE INCOME TAX APPELLATE TRIBUNAL INDORE BENCH, INDORE BEFORE SHRI B.M. BIYANI, ACCOUNTANT MEMBER AND SHRI PARESH M. JOSHI, JUDICIAL MEMBER ITA No. 810/Ind/2024 Sarvabhaoom Hindu Dharam Srichobees Avtar Tatwagyan Mandir Trust, Depalpur, Indore बनाम/ Vs. CIT (Exemption) Bhopal (Assessee/Appellant) (Revenue/Respondent) PAN: AAETS4230L Assessee by Shri Ashish Goyal and N.D. Patwa, ARs Revenue by Shri Raghunath, CIT-DR Date of Hearing 26.08.2025 Date of Pronouncement 28.08.2025 आदेश/ O R D E R Per B.M. Biyani, A.M.: Feeling aggrieved by order bearing DIN: ITBA/EXM/F/EXM45/2024-25 dated 26.09.2024 [“impugned order”] passed by learned Commissioner of Income-Tax (Exemption), Bhopal [“CIT(E)”] by which the assessee’s application for grant of final approval u/s 80G(5) of Income-tax Act, 1961 has been rejected and the provisional approval u/s 80G(5) granted earlier Printed from counselvise.com Sarvabhaoom Hindu Dharam Srichobees Avtar Tatwagyan Mandir Trust ITA No. 810/Ind/2024 Page 2 of 8 has also been cancelled, the assessee has filed this appeal on the grounds mentioned in Appeal Memo (Form No. 36). 2. The background facts leading to present appeal are such that the assessee is a public trust claiming to be engaged in charitable-cum-religious activities. The assessee was holding registration u/s 12AA from AY 2017-18 granted vide Order No. ITBA/EXM/S/12AA/2017-18/1005867614(1) dated 23.08.2017 under old regime. Further, the assessee is holding final registration u/s 12A/12AB granted from AY 2022-23 to 2026-27 vide Order No. AAETS4230LE20211 dated 07.04.2022. Apart from these registrations u/s 12A/12AA/12AB, the assessee also applied for provisional approval u/s 80G(5) which was granted by Income-tax Department from 08.12.2022 to AY 2025-26 vide Order No. AAETS4230LF2022101 dated 08.12.2022. Thereafter, the assessee made an application dated 12.03.2024 in Form No. 10AB seeking final approval u/s 80G(5) but this application has been rejected by CIT(E) through impugned order dated 26.09.2024. Simultaneously, the CIT(E) has also cancelled assessee’s provisional approval u/s 80G(5). Aggrieved, the assessee has come in next appeal before us. 3. We have heard learned Representatives of both sides and carefully perused the impugned order. Printed from counselvise.com Sarvabhaoom Hindu Dharam Srichobees Avtar Tatwagyan Mandir Trust ITA No. 810/Ind/2024 Page 3 of 8 4. Ld. AR for assessee at first drew us to Para 6 of impugned order and showed that the Ld. CIT(E) has observed that assessee is a ‘religious entity’ and therefore in terms of section 80G(5)(ii) read with Explanation-3 to section 80G, the assessee is not eligible for approval u/s 80G(5). He, however, submitted that assessee is a ‘charitable-cum-religious entity’ which is manifest from following documents: (i) The Order passed by Registrar of Public Trusts, Depalpur, in matter No. 3/B-113/2001-2002 dated 18.10.2002 u/s 5(1) of Madhya Pradesh Public Trust Act, 1951 (placed at Page No. 2-7 of Paper-Book), granted registration to assessee as ‘public trust’ for following objects/activities: “(3) मÚयĤदेशलोकÛयासअͬधǓनयम, 1951 कȧ धाराकेअंतग[त Ěèटȣयɉ ɮवाराउãलेͨखतǒबÛदुओंपरधारा 5(1) केअंतग[तजांचकȧ गई। िजसकाǓनçकष[ नीचेअनुसारहै:- यहĚèटसाव[जǓनकहोकरसाव[भौमचौवीसअवतारमंǑदरÛयासके नामसेकायमͩकयागयाहै।ĚèटमंǑदरकेͧलएवभवनकेͧलएव सामािजकåयवèथाकेͧलएसमèतकाय[ करेगा।समय-समयपरĮीसेवा संèथानभÈतमालȣ साव[भौमचौबीसअवतारमंǑदरतहसीलदेपालपुरिजला इंदौर राçĚȣय, सांèकृǓतक, धाͧम[क तथा सामािजक कायɟ का आयोजन करवायेगा।“ Thus, Ld. AR submitted, the trust is working for multiple activities of social, national, cultural, religious including maintenance of temple. Printed from counselvise.com Sarvabhaoom Hindu Dharam Srichobees Avtar Tatwagyan Mandir Trust ITA No. 810/Ind/2024 Page 4 of 8 According to Ld. AR, majority of these activities are charitable although there is a minor portion of religious nature as well. (ii) That by Order No. ITBA/EXM/S/12AA/2017-18/1005867614(1) dated 23.08.2017 (placed at Page No. 8-9 of Paper-Book) passed by CIT(E), the registration u/s 12AA itself was granted to assessee accepting assessee’s activities as “Advancement of any other object of general public utility, Religious activities”. According to Ld. AR, the activity of “Advancement of any other object of general public utility” is a “charitable purpose” as defined in section 2(15) of the Act. 5. Ld. AR next submitted that although the provision of section 80G(5)(ii) read with Explanation-3 to section 80G disentitles an assessee engaged in ‘religious activity’ from getting approval u/s 80G(5) but the law does not stop here. There is an over-riding section 80G(5B) which prescribes thus: “(5B) Notwithstanding anything contained in clause (ii) of sub-section (5) and Explanation 3, an institution or fund which incurs expenditure, during any previous year, which is of a religious nature for an amount not exceeding five per cent of its total income in that previous year shall be deemed to be an institution or fund to which the provisions of this section apply.” 6. Ld. AR submitted that the expenses incurred by present assessee for religious nature were below the prescribed limit of 5% as per section 80G(5B) and therefore the assessee is entitled to approval. To show the status of assessee’s expenses, Ld. AR drew us to ‘Annexure-A’ to his Written-Synopsis where following certificate of assessee-trust is filed: Printed from counselvise.com Sarvabhaoom Hindu Dharam Srichobees Avtar Tatwagyan Mandir Trust ITA No. 810/Ind/2024 Page 5 of 8 Printed from counselvise.com Sarvabhaoom Hindu Dharam Srichobees Avtar Tatwagyan Mandir Trust ITA No. 810/Ind/2024 Page 6 of 8 7. Referring to above certificate, Ld. AR submitted that the only expenditure on religious activity could be “Poojan Expenses”, rest of the expenses were incurred for carrying charitable activity. He submitted that the magnitude of “Poojan Expenses” is very small and never exceeded 5% limit. Therefore, the assessee deserves benefit of section 80G(5B) which must be given and the Ld. CIT(E) be directed to grant approval sought by assessee. 8. Per contra, Ld. DR for revenue initially submitted that the CIT(E) has rightly treated the assessee has a ‘religious entity’ but later, after considering Ld. AR’s submissions as narrated by us in foregoing Para No. 4 of this order, did not insist on that point. He accepted that the assessee trust is a charitable-cum-religious entity, more so when the department has granted registration u/s 12AA accepting such status of assessee. However, Ld. DR went ahead to make a submission that the details of expenses filed by assessee in the certificate need to be deeply examined by CIT(E) because there are expenses other than “Poojan Expenses” which might have been incurred for ‘religious activity’ and he is unsure of making any submission in this regard. Therefore, he submitted that the present case of assessee may be remanded to CIT(E) for a proper examination in terms of section 80G(5B). 9. Ld. AR for assessee agreed to the submissions of Ld. DR. Printed from counselvise.com Sarvabhaoom Hindu Dharam Srichobees Avtar Tatwagyan Mandir Trust ITA No. 810/Ind/2024 Page 7 of 8 10. We have considered the submissions of both sides and perused the impugned order as also the documents filed in Paper-Book to which our attention has been drawn. So far as the nature of assessee-trust is concerned, the Order of Registrar of Public Trust as narrated in earlier Para No. 4(i) of this order, makes it clear that the assessee is existing for multiple objects of charitable as well as religious nature. Further, the Order issued by Income-tax Department granting registration to assessee u/s 12AA as narrated in Para No. 4(ii) of this order, also accepts that the assessee has activity of charitable-cum-religious nature. Therefore, in view of these evidences, we are inclined to accept the status of assessee as ‘charitable- cum-religious’. Having said thus, we find a merit in the claim of assessee that it deserves benefit of section 80G(5B). The Ld. DR has made a proposal to remand this matter back to the file of CIT(E) for a deeper analysis of expenses and take a call on the touchstone of section 80G(5B). We agree to this proposal made by Ld. DR for revenue which is also accepted by Ld. AR for assessee. Therefore, in the end, we remand this matter to the file of CIT(E) for examining assessee’s case in terms of section 80G(5B) and grant final approval to assessee, if the assessee is found eligible in terms of section 80G(5B). The assessee succeeds in this appeal accordingly. Printed from counselvise.com Sarvabhaoom Hindu Dharam Srichobees Avtar Tatwagyan Mandir Trust ITA No. 810/Ind/2024 Page 8 of 8 11. Resultantly, this appeal is allowed for statistical purpose. Order pronounced in open court on 28/08/2025 Sd/- Sd/- (PARESH M. JOSHI) (B.M. BIYANI) JUDICIAL MEMBER ACCOUNTANT MEMBER Indore िदनांक/Dated : 28/08/2025 Patel/Sr. PS Copies to: (1) The appellant (2) The respondent (3) CIT (4) CIT(A) (5) Departmental Representative (6) Guard File By order UE COPYSr. Private Secretary Income Tax Appellate Tribunal Indore Bench, Indore Printed from counselvise.com "