SHREE KALI DEVI MANDIR SABHA,HANSI, HISAR HARYANA V. CIT (EXEMPTION) CHANDIGARH, CHANDIGARH

ITA 1825/DEL/2025

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The case involves Shree Kali Devi Mandir Sabha, which appealed against the decision of the Commissioner of Income-tax (Exemptions), Chandigarh, who had rejected their application for approval under section 80G(5)(iii) of the Income Tax Act, 1961. The rejection was based on the grounds that the Memorandum of Association of the Sabha mentioned objectives that included religious activities, which under Explanation 3 to section 80G(5) of the Act, could disqualify them from receiving tax-exempt donations. The Sabha contended that they do not engage in religious activities and that the mention in the Memorandum was inadvertent and without legal advice. The tribunal found merit in the Sabha's argument and restored the matter to the CIT(E) for a detailed examination of the actual activities versus the stated objectives in the Memorandum of Association.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 781921 (ITAT-DELHI)
• Duration Of Justice: 7 month(s) 11 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 29-10-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2024-2025
• Appeal Filed On: 18-03-2025
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Matter Remanded
• Court: TRIBUNAL
• Department Lawyers: MAHESH KUMAR
• Assessee Lawyers: NITIN KANWAR

Judgement Text

" IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCHES: G : NEW DELHI BEFORE SHRI ANUBHAV SHARMA, JUDICIAL MEMBER AND SHRI NAVEEN CHANDRA, ACCOUNTANT MEMBER ITA No.1825/Del/2025 Assessment Year: 2024-25 Shree Kali Devi Mandir Sabha, Delhi Road, Teh Hansi, Hisar – 125033, Haryana. PAN: AAFAS3739N Vs CIT (E), Chandigarh. (Appellants) (Respondents) Assessee by : Shri Nitin Kanwar, Shri Rajiv Kumar & Shri Shivam jain, Advocates Revenue by : Shri Mahesh Kumar, CIT-DR Date of Hearing : 01.10.2025 Date of Pronouncement : 29.10.2025 ORDER PER ANUBHAV SHARMA, JM: This appeal is preferred by the assessee against the order dated 19.09.2024 of the Commissioner of Income-tax (Exemptions), Chandigarh, rejecting the application of the assessee for approval u/s 80G(5)(iii) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’). Printed from counselvise.com ITA No.1825/Del/2025 2 2. On hearing both the sides, we find that the impugned order has been passed alleging that the objects mentioned in the Memorandum of Association have objectives which fall under the Explanation 3 to section 80G(5) of the Act as religious activities are being conducted. The case of the assessee is that when the Memorandum of Association of the Society was prepared without any legal advice, certain general clauses as are usually mentioned in the Memorandum of Association were incorporated while the assessee is not engaging in any religious activities and the activities primarily are for giving relief to poor by way of medical relief and the objectives are of general public utility. 3. We are of the considered view that the statute provides for making application in Form 10AB and if the assessee claims that inadvertently it was mentioned that religious-cum-charitable activities were being performed while actually no religious activity were being carried out, then, on facts, the ld.CIT(E) should examine the issue and merely because of mentioning anything in the Memorandum of Association alone tax authorities should not deny registration if otherwise, assessee establishes its incorporation and existence is for charitable activities only. Thus, we are inclined to allow the appeal for statistical purposes and the issue on merits is restored to the files of CIT(E) to give a fresh opportunity of hearing to the assessee to establish Printed from counselvise.com ITA No.1825/Del/2025 3 fulfillment of the conditions for grant of registration u/s 80G(5) of the Act. The appeal is allowed for statistical purposes. Order pronounced in the open court on 29.10.2025. Sd/- Sd/- (NAVEEN CHANDRA) (ANUBHAV SHARMA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29th October, 2025. dk Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asstt. Registrar, ITAT, New Delhi Printed from counselvise.com "