Section 80G renewal for a charitable trust was remanded for fresh consideration after incidental milk sales and charitable objects were noted.

Renewal of recognition under section 80G(5) for a long-standing charitable trust was not finally upheld where the trust's predominant objects remained charitable and the sale of milk was treated as incidental to its cattle-care activities. The Court noted the earlier grant of recognition, the trust's assurance that milk-sale accounts would be maintained separately, and held that the authority should reconsider the request on the relevant facts with due regard to natural justice. The matter was remanded for fresh consideration and readjudication rather than treated as finally refused.

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Issues: Whether the refusal to renew recognition under section 80G(5) of the Income-tax Act, 1961 was sustainable and whether the matter required remand for fresh consideration.

Analysis: The petitioner was a long-standing charitable trust engaged predominantly in the care and maintenance of infirm and rejected cattle. The impugned refusal rested on the allegation that the trust was carrying on a large-scale dairy business without separate books of account. The Court placed weight on the trust's historical charitable character, its predominant non-profit objects, the incidental nature of milk sale, the long period during which recognition had earlier been granted, and the assurance that accounts relating to milk sales would be maintained and submitted. In these circumstances, the Court found it appropriate that the authority reconsider the request sympathetically and with due regard to the relevant facts and principles of natural justice.

Conclusion: The refusal of renewal was not finally sustained and the matter was remanded to the respondent-authority for reconsideration and readjudication.

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