SHREE SATYAY MATAJI MANDIR MANGROLIYA PARIVAR TRUST PITHVAJAL,AMRELI V. THE CIT(EXEMPTION), AHMEDABAD, AHMEDABAD

ITA 844/RJT/2024

AI Insights

The case involves Shree Satyay Mataji Mandir Mangroliya Parivar Trust, which filed appeals against the orders of the Commissioner of Income-tax (Exemption), Ahmedabad, rejecting their applications for registration under sections 12AB and 80G of the Income-tax Act, 1961. The CIT(E) had rejected the applications on the grounds that the trust's objectives were confined to the benefit of a particular religious community and caste, and not for the public at large. The Tribunal found that the trust's activities were not limited to a specific community and directed a re-examination of the trust's objectives and activities.

• Counselvise Citation: [2025] 140 COUNSELVISE.COM (IT) 711257 (ITAT-RAJKOT)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 21-07-2025
• Appeal Filed By: Assessee
• Order Result: Allowed
• Assessment Year: 2024-2025
• Other Referred Cases: Jamiatul Banaat Tankaria (2024) 168 taxmann.com 35 (Gujarat HC), Shri Sachay Mataji Mandir Vikas Trust (2024) 165 taxmann.com 306 (Rajkot Tribunal)
• Laws Referred To: Income-tax Act, 1961
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: SANJAY PUNGLIA
• Assessee Lawyers: D.M. RINDANI; LD
• Keywords: Set aside
• Section: 12A

Judgement Text

"आयकर अपीलȣय अͬधकरण, राजकोट Ûयायपीठ, राजकोट। IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER AND SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकर अपील सं/.ITA No.844 & 845/RJT/2024 Ǔनधा[रणवष[ / Assessment Year: N.A. Shree Satyay Mataji Mandir Mangroliya Parivar Trust-Pithvajal Jisignpara Street No.2, Amreli, Gujarat-365601 PAN : ABITS4939F बनाम Vs. The CIT(Exemption), Ahmedabad (अपीलाथȸ/Appellant) : (Ĥ×यथȸ/Respondent) Ǔनधा[ǐरती कȧ ओर से/Assessee by : Shri D. M. Rindani, ld.AR राजèव कȧ ओर से/Revenue by : Shri Sanjay Punglia, CIT-DR सुनवाई कȧ तारȣख /Date of Hearing : 08/07/2025 घोषणा कȧ तारȣख /Date of Pronouncement : 21/07/2025 ORDER Per, Dr. Arjun Lal Saini, Accountant Member: Captioned two appeals filed by the same assessee, against the separate orders passed by the Ld. Commissioner of Income-tax(Exemption), Ahmedabad [in short ‘Ld.CIT(E)’ wherein the Ld.CIT(E) has rejected the assessee’s application in Form 10AB u/s. 12(1)(ac)(vi) of the Income-tax Act, 1961(hereinafter referred to as ‘the Act’) and the Ld. CIT(E) also rejected the assessee’s application in Form 10AB, u/s. 80G(5)(iv)(B) of the Act dated 30.08.2024. Printed from counselvise.com Shree Satyay Mataji Mandir Mangroliya Parivar Trust ITA No. 844 & 845/Rjt/2024 2 2. In ITA No. 845/Rjt/2024, the solitary grievance of the assessee is that ld. CIT(E) erred in rejecting the application filed by the assessee, in Form No.10AB, under section 12AB of the Act, on the ground that the object of the assessee- trust are restricted to the benefit of a particular religious community and caste and not for public at large. 3. Succinctly, the factual panorama of the case is that assessee before us is a charitable-trust. The assessee has filed Form 10AB, u/s. 12A(1)(ac)(vi-item(B) of the Act, on 19.02.2024. In reference to the application filed by the assessee in Form No. 10AB, the assessee was requested to submit certain details/documents vide notice dated 06.05.2024 of ld CIT(E ). In response to the said notice, the assessee, submitted its reply vide letter dated 31.05.2024 and filed certain details. However, on perusal of the objects of the assessee, as stipulated in \"Constitution\" it was observed by ld CIT(E ) that the object of the assessee are confined for the benefit of a particular religious community or caste, that is, Mangrolia, Bhadkan, Vastani and Hirani family. In view of the above, a further show cause notice was issued to the assessee, on 05.08.2024. In the said show cause notice the Ld. CIT(E) observed that the \"primary eligibility for joining the trust\" and \"objects/objectives\" of trust stipulated in the para 3 of the Constitution of the trust, are only for the families with Mangaroliya sumame which is a surname in Leuva Patel society and the members of the other three sub-sumames of the same family \"Bhadkan, Vestani and Hirani\" can join this organization. Further in this constitution, whenever the word \"family\" is mentioned, it shall be understood and recognized as referring to the families having the four sumames \"Mangrolla, Bhadkan, Vastani and Hirani\". 4. Further ld. CIT(E) treated the following objectives of the trust for the benefit of these family, which are reproduced below: (1) To celebrate the festivals of Shri Satya Matajl through this organization and on the occasion of religious events/occasions by holding Printed from counselvise.com Shree Satyay Mataji Mandir Mangroliya Parivar Trust ITA No. 844 & 845/Rjt/2024 3 Mangrolla, Bhadkan, Vastani and Hirani families together to organize Yajna-home Havan, Shobha Yatra and family ceremonies and gardens, flowers and to organize swing for playing of small children. (2) Doing activities for the development and well-being of the family in the presence of Shri Satya Mataji. Creating the facilities of a cultural hall/wadi for the Mangrolla, Bhadkan, Vastani and Hirani families /managing it, creating utensils, mandap, mattresses, table chairs and other necessary facilities constructing and managing cultural family wadis, halls for celebrating social events such as weddings, \"gatherings, social gatherings, and other social activities, festivals for settlement and development of religious activities. (6) To provide adequate guidance to the sick or terminally ill people of the family and to create facilities for their treatment and help in the same. Gan start, run and maintain dispensaries, hospitals, dispensaries, hospitals, treatment centres, ambulatory medical vehicles, mortuaries, medicine factories, experiment schools, blood banks etc. for the protection of health and prevention of diseases. (7) To honor and reward people who work for the upliftment of Shri Sathyaya Mataji and family, to build a temple of Shri Sathyaya Mataji and to make arrangements for worship, aarti and repairs. (9) In order to increase the spirit of adventurous activities among the young men and women of the family, organizing sports competitions, holding trekking programs on the mountains, organizing programs like youth camps, cultural activities, dramas, youth talent search competitions, Printed from counselvise.com Shree Satyay Mataji Mandir Mangroliya Parivar Trust ITA No. 844 & 845/Rjt/2024 4 as well as nation-religion-culture among the young men and women. Planning work sequences that increase awareness about the knowledge- duties-responsibilities of the society. (10) To do necessary work for the overall development of the socially and economically backward people of the family, to provide necessary and possible help and to create employment opportunities. To plan and maintain a system so that the necessaries of life are available at reasonable prices and easily. (12) To gather the socially and economically backward people of the family more and more and do the work of giving Tilanjali to the evils and evildoers in the society from the whole society. (13) To carry out all kinds of activities for the overall development and upliftment of women, girls and people of the family. And helping them in all kind of matters. (16) To provide scholarships, educational assistance, financial assistance or study materials, books and other facilities to students studying in families for pursuing higher education at home and abroad. 5. The ld. CIT(E) noticed from the above objects of the assessee and held that these objects are confined towards benefit of particular religious community or caste that is, Mangrolia, Bhadkan, Vastani and Hirani family and not for the benefit of public at large. Therefore, ld. CIT(E ) asked the assessee to clarify that as to how there is no contravention of provision of section 12AB(4) Printed from counselvise.com Shree Satyay Mataji Mandir Mangroliya Parivar Trust ITA No. 844 & 845/Rjt/2024 5 r.w.s. 13(1)(b) of the Act. Further, assessee was requested to submit details of actual expenditure incurred on these activities. 6. In response to the above show cause notice dated 05.08.2024, the assessee has neither submitted any reply nor has sought any adjournment. Therefore, ld. CIT(E) held that as the assessee has opted to remain silent, hence assessee`s case is to be decided based on material available on record. The ld. CIT(E) noticed that the object of the assessee as stipulated in the constitution of the trust, are charitable in nature but for the benefit of a particular religious community or caste i.e. Mangrolia Bhadkan, Vastani and Hirani family. It also become evident from the fact that only the families with Mangaroliya surname which is a surname in Leuva Patel society and the members of the other three sub-surnames of the same family \"Bhadkan, Vastani and Hirani can join this organization. Further in this constitution, whenever the word \"family\" is mentioned, it shall be understood and recognized as referring to the families having the four surnames \"Mangrolia, Bhadkan, Vastani and Hirani. The ld. CIT(E) further observed that application referred to in clause (ac) of sub- section(1) of section 12A is not complete or it contains false or incorrect information and in this case, the disputed objects referred above are charitable in nature and found to be confined for the benefit of \"Mangrolia, Bhadkan, Vastani and Hirani family\" caste and is a specified violation under clause(d) below explanation to section 12AB(4) of the Act for which registration of trust can be cancelled. In view of the above facts, the ld. CIT(E) held that the assessee has violated existing provisions and therefore is not eligible to get registered u/s 12A(1)(ac) (vi)-ITEM(B) of the Act, therefore, the assessee`s application was rejected. 7. Aggrieved by the order of the Ld. CIT(E), the assessee is in appeal before us. Printed from counselvise.com Shree Satyay Mataji Mandir Mangroliya Parivar Trust ITA No. 844 & 845/Rjt/2024 6 8. Shri D. M. Rindani, Ld. Counsel for the assessee submitted that the object of the assessee trust is not confined to a particular family but it is for the benefit of general persons. That is, the objects of the trust are not restricted only Mangrolia, Bhadkan, Vastani and Hirani Family but it is also for general public at large. Thus, it is patent on plain reading of the objects clause of the Trust Deed that it is not 'created or established\" for the benefit of any particular religious community or caste only but it also established for the benefit of general public at large. Thus, it cannot be said that the trust is 'created or established for the benefit of any particular religious community or caste. The ld. Counsel further, stated that provisions of Section 13(1)(b), as to trust's objects being limited to benefitting a specific religious community or caste, can be invoked/attracted only at the time of assessment and not at the time of grant of registration u/s 12A of the Act, for that learned Counsel relied on the following judgements: (1) Jamiatul Banaat Tankaria (2024) 168 taxmann.com 35 (Gujarat HC) and (2) Shri Sachay Mataji Mandir Vikas Trust (2024) 165 taxmann.com 306 (Rajkot Tribunal). 9. On the other hand, Ld. CIT-DR for the Revenue submitted that assessee has neither appeared before the Ld. CIT(E) nor filed any details and documents before the Ld. CIT(E), moreover, the assessee submitted incomplete application. Therefore, assessee’s appeal may be dismissed. Alternatively, Ld. CIT-DR also argued that if the assessee’s trust case is remitted back to the file of Ld. CIT(E) then in these circumstances, assessee should be instructed to file the amended objects of the Trust and after taking into account, the amended objects of the Trust, the Ld. CIT(E) may take the decision to grant registration in accordance with law. 10. We have carefully considered the facts of the case, the submission of the Learned Counsel for the assessee and ld.CT-DR for the Revenue and evidences Printed from counselvise.com Shree Satyay Mataji Mandir Mangroliya Parivar Trust ITA No. 844 & 845/Rjt/2024 7 on record. Though the facts have been discussed in detail in the foregoing paragraphs, however in the succinct manner, the relevant facts and background are reiterated in order to appreciate the controversy and the issue for adjudication. We note that assessee filed appeal before us, against the order of the Ld. CIT(E), rejecting the application for registration of the appellant u/s 12AB of the Act for the reason that the appellant is established for the benefit of a particular religious community or caste i.e. Mangrolia, Bhadkan, Vastani and Hirani Family. Hence, it is hit by provisions of section 12AB(4) and not entitled for registration u/s 12A(1)(ac)(iii) of the Act. Besides, the assessee filed the incomplete application before the ld. CIT(E) and moreover, the assessee has not submitted the entire documents and evidences before the ld. CIT(E), in response to the show cause notice dated 5th August 2024. As we have noted above that in response to the notice of the Ld. CIT(E), the assessee did not appear and did not file the relevant documents and evidences. Therefore, we are of the view that one more opportunity should be given to the assessee to file the required details and documents before the Ld. CIT(E). About the issue raised by the Ld. CIT(E), pertaining to the activities of the Trust, for particular caste and community, we find that the Shri Satyay Mataji Mandir Mangrolia Parivar Trust (assessee under consideration) is open for all community and caste and we have also gone through the objects of the trust and we find that majority of the objects are for the benefit of general purpose/public, and not confined to any specific community and caste. Although Trust is registered in the name of the religious community and caste however, most of the objects are for the benefit of general persons and moreover this Mandir (Temple) is open for all the caste and community, who can go to the Mandir and worship the Satyay Mataji. Therefore, we find that taking into account, the objects of the Trust it appears that it is open for every caste and community and also for the benefit of the general public. Therefore, considering the above facts, we are of the view that Printed from counselvise.com Shree Satyay Mataji Mandir Mangroliya Parivar Trust ITA No. 844 & 845/Rjt/2024 8 the matter should be remitted back to the file of the ld. CIT(E), with the direction to the assessee to file the complete documents and evidences, and also remove the defect in the application filed for registration. Therefore, we set aside the order of the ld. CIT(E) and remit the issue back to the file of the ld. CIT(E) to adjudicate the assessee`s application for registration afresh. 11. In the result, appeal filed by the assessee is allowed for statistical purposes, in above terms. 12. Since we have remitted the assessee`s appeal relating to registration in ITA No. 845/Rjt/2024, which pertains to registration u/s. 12AB(1)(ac) of the Act, therefore, we direct the Ld. CIT(E) to examine the documents and evidences relating to approval u/s. 80G(5)(iii) of the Act relating to assessee’s appeal in ITA No. 844/Rjt/2024, and examine the conditions of section 80G(5) of the Act, and then grant approval u/s. 80G(5) (iii) of the Act, in accordance with law. 13. In the result, appeal filed by the assessee, in ITA No. 844/Rjt/2024, is allowed for statistical purposes. 14. In the combined result, both the appeals filed by the assessee are allowed for statistical purposes. Order is pronounced in the open court on 21/07/2025 Sd/- Sd/- (DINESH MOHAN SINHA) JUDICIAL MEMBER (DR. ARJUN LAL SAINI) ACCOUNTANT MEMBER राजकोट /Rajkot िदनांक/ Date: 21/07/2025 Dkp Outsourcing Sr.P.S. Printed from counselvise.com Shree Satyay Mataji Mandir Mangroliya Parivar Trust ITA No. 844 & 845/Rjt/2024 9 आदेश कì ÿितिलिप अúेिषत/ Copy of the order forwarded to :  अपीलाथê/ The Appellant  ÿÂयथê/ The Respondent  आयकर आयुĉ/ CIT  आयकर आयुĉ(अपील)/ The CIT(A)/(NFAC), Delhi.  िवभागीय ÿितिनिध, आयकर अपीलीय आिधकरण, राजकोट/ DR, ITAT, RAJKOT  गाडªफाईल/ Guard File By order/आदेशसे , /T // True Copy // Assistant Registrar/Sr. PS/PS ITAT, Rajkot Printed from counselvise.com "