SHI BARA BAVAN MODH BRAHMAN VIDHYOTEJAK TRUST MANDAL,GANDHINAGAR V. THE CIT(EXEMPTION), AHMEDABAD

ITA 32/AHD/2025

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The case involves Shri Bara Bavan Modh Brahman Vidhyotejak Trust Mandal, a public charitable trust, which appealed against the decision of the Commissioner of Income Tax (Exemption), Ahmedabad. The Commissioner had rejected the trust's application for approval under section 80G(5)(ii) of the Income Tax Act, 1961, and cancelled its provisional approval, citing that the trust was for the benefit of a particular religious community, which is excluded from the benefits of section 80G(5). The Tribunal found that the Commissioner did not adequately consider the explanations and evidence provided by the trust and thus remanded the case for a fresh evaluation.

• Counselvise Citation: [2026] 140 COUNSELVISE.COM (IT) 837816 (ITAT-AHMEDABAD)
• Duration Of Justice: 1 year(s) 1 month(s) 13 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-02-2026
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: misc
• Appeal Filed On: 06-01-2025
• Laws Referred To: Section 80G(5), Section 80G(5)(ii), Section 12A, Section 12A(1)(ac)
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: R P RASTOGI
• Assessee Lawyers: S N DIVATIA
• Keywords: Principle of natural justice; Charitable institution
• Section: 12A

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL “B” BENCH, AHMEDABAD BEFORE DR. B.R.R. KUMAR, VICE-PRESIDENT Ms SUCHITRA KAMBLE JUDICIAL MEMBER I.T.A. No.32/Ahd/2025 (Assessment Year: N.A) Shri Bara Bavan Modh Brahman Vidhyotejak Trust Mandal, 1305, Shivam Society, Sector 27, Gandhinagar-382028. [PAN :AAATS8400 J] Vs. The Commissioner of Income Tax(Exemption), Ahmedabad. (Appellant) .. (Respondent) Appellant by : Shri S N Divatia with Shri Samir Vora, ARs Respondent by: Shri R P Rastogi, CIT. DR Date of Hearing 17.02.2026 Date of Pronouncement 19.02.2026 O R D E R PER DR. B.R.R. KUMAR, VICE-PRESIDENT:- This appeal is filed by the Assessee against the appellate order dated 24.12.2024 passed by the Commissioner of Income Tax (Exemption), Ahmedabad, relating to the Assessment Year N.A. 2. The assessee has raised the following grounds of appeal: 1.1 The order passed by U/s.80G(5) on 24.12.2024 by CIT(Exem), Ahmedabad rejecting the application for approval of the appellant trust u/s 80G(5)(ii) of the Act and cancelling the provisional approval by holding that the appellant trust was for the benefit of a particular religious community or caste which is excluded from the benefits of sec.80G(5) is wholly illegal, unlawful and against the principles of natural justice. 2.1 The Id. CIT(Exem), has grievously erred in law and or on facts in not appreciating that the appellant trust was not a religious trust or for the Printed from counselvise.com ITA No. 32/Ahd/2025 Asst. Year : N.A - 2– benefit of a particular religious' community or caste. The Id. CIT(Exem) has erred in not considering fully and properly the explanations furnished and evidence produced by the appellant trust. 2.2 That the in the facts and circumstances of the Id. CIT(Exem), ought not to have held that the appellant trust was a religious trust inclusive of religious objects for the benefit of a particular religious' community or caste. 3.1 The Ld.CIT(Exem), has grievously erred in law and on facts in rejecting the approval of the appellant trust u/s.80G(5)(ii) of the Act and cancelling the provisional approval. 3.2 That the in the facts and circumstances of the ld.CIT(Exem), ought not to have rejected the application for registration by ignoring the evidence on record with the application for registration. It is, therefore, prayed that the rejection of the application for approval u/s.80G(5) and cancellation of the provisional approval by the CIT(Exem), may kindly be deleted. 3. The assessee is a public charitable trust duly constituted under a Scheme approved by the Charity Commissioner vide order dated 24.09.2018. The trust is registered under the Gujarat Public Trust Act, 1950 vide Registration No. A/37/Ahd dated 15.09.1952. The objects of the trust are to provide financial assistance to needy students for education by way of fees, loans, scholarships, etc. The assessee-trust also runs educational institutions such as Shri Matangi Bal Vidhyamandir and Shri Matangi Sarva Vidyalay. The trust maintains books of account and records which are audited under the trust laws. The assessee trust was registered under section 12A prior to 01.04.2021 and subsequently applied for provisional registration under section 12A(1)(ac) in Form 10AC, which was granted on 24.09.2021 for AY 2022-23 to 2024-25. The assessee was also granted provisional approval under section 80G(5)(iv) from 24.09.2021 for the same period. The Ld. CIT (Exemption) issued notice dated 05.10.2024 seeking details, which were furnished vide reply Printed from counselvise.com ITA No. 32/Ahd/2025 Asst. Year : N.A - 3– dated 28.11.2024. Another notice dated 09.12.2024 required submission by 12.12.2024, and the assessee submitted a detailed reply on 12.12.2024 with exhaustive explanations, documents, and case laws. However, the Ld. CIT (Exemption), for reasons stated in paragraph 8 of the impugned order, concluded that the objects in para-5 of the trust deed providing financial help to students of Shri Bara Bavan Modh Chaturvedi Brahmin Community were for the benefit of a particular religious community or caste and therefore violated section 80G(5)(ii). Accordingly, the approval was rejected and the provisional approval was cancelled. 4. Aggrieved by the order of the Ld. CIT(E), the Assessee filed appeal before the Tribunal. 5. At the outset, we note that notices were issued from time to time calling for details and documents. The Ld. CIT (Exemption) rejected the application on the ground that the assessee trust was for the benefit of a particular religious community or caste. The Ld. Counsel for the assessee submitted that in response to the notice dated 05.10.2024, the assessee trust had fully explained the objects and activities and also pointed out the expenditure on religious purposes incurred in earlier years. Further, in reply to the notice dated 12.12.2024, exhaustive explanations regarding charitable activities were furnished. The Ld. CIT (Exemption) failed to consider and deal with the explanations and material on record. The Ld. CIT (DR) submitted that the assessee trust should furnish requisite details and explanations before the Ld. CIT (Exemption). Having considered the facts and submissions, we are of the view that the interests of justice would be served by remanding the matter to the Ld. CIT (Exemption) for Printed from counselvise.com ITA No. 32/Ahd/2025 Asst. Year : N.A - 4– fresh consideration of the application and to pass an order after considering the submissions and explanations of the assessee. The assessee shall comply with the notices issued and shall not seek unnecessary adjournments. 6. In the result, the appeal of the assessee is allowed for statistical purposes. The order is pronounced in the open Court on 19.02.2026. Sd/- Sd/-/- (SUCHITRA KAMBLE) (DR. B.R.R. KUMAR) JUDICIAL MEMBER VICE-PRESIDENT (True Copy) Copy) (True Copy) Ahmedabad; Dated 19.02.2026 MV आदेश की Ůितिलिप अŤेिषत/Copy of the Order forwarded to : 1. अपीलाथŎ / The Appellant 2. ŮȑथŎ / The Respondent. 3. संबंिधत आयकर आयुƅ / Concerned CIT 4. आयकर आयुƅ(अपील) / The CIT(A)- 5. िवभागीय Ůितिनिध, आयकर अपीलीय अिधकरण, अहमदाबाद / DR, ITAT, Ahmedabad 6. गाडŊ फाईल / Guard file. आदेशानुसार/ BY ORDER, True Copy सहायक पंजीकार (Dy./Asstt. Registrar) आयकर अपीलीय अिधकरण, अहमदाबाद / ITAT, Ahmedabad Printed from counselvise.com "