TaxTMI 
TaxTMI 
2025 (10) TMI 1214
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....eferred to as "the Act"). 2. The assessee has raised the following Grounds of Appeal: Erroneous finding on Benefit to Particular Community The CIT (Exemption) erred in concluding that the trust benefits only a specific religious community. The appellant provides assistance based on need, irrespective of caste or religion, in alignment with section 2(15) of the Act. Assessing Officer failed to review financial statements and Audit report whereby it clearly exhibits that the amount received as donations were utilised for charitable purpose and for people at large and not for any single community. Assessing Officer failed to review audil report Form 108 filed with income tax Department for FY 202....
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....e Trust, Rajkot vs. CIT (Exemption) [ITAT Ahmedabad) 2. N.N. Desai Charitable Trust vs. Commissioner of Income-Tax Gujarat High Court) 3. Indrashil Innovative Foundation vs. CIT (Exemption) [ITAT Ahmedabad) 4. Shri Sadhumargi Shantikranti Jain Trust vs. Commissioner of Income Tax (Exemption) (ITAT Ahmedabad) 5. Shrouta Vijnam Gurukulam, Mangalore vs. Income Tax Officer (ITAT Banglare) 5. Failure to Consider the Trust's Activities in Public Interest The trust has been engaged in public welfare activities since 1954, benefitting students and needy individuals. The rejection order disregards the well-documented evidence of charitable work undertaken by the trust. 6. Fa....
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.... examined the trust's founding documents (MOA) and observed that the trust's main objectives were aimed at benefiting a specific community, namely the Vardhaman Samaj (42 Dasha Dhrumad Digambar Jain Samaj), and included provisions for religious advancement. The CIT(Exemptions) was of the view that these objects were both community-specific and composite in nature, meaning that these objects were a mix of charitable and religious purposes. The CIT(Exemptions) observed that such objects did not serve the public at large, which is a necessary condition under section 80G(5) of the Act. Even if charitable in part, the religious and community-based focus of the trust's objects disqualified the assessee / applicant trust from approval, since Expla....
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...., the assessee/applicant trust's provisional approval under section 80G of the Act was also cancelled. 4. The assessee is in appeal before us against the order passed by CIT(Appeals) dismissing the appeal of the assessee. Before us, the counsel for the assessee submitted that the order passed by the CIT(Exemptions) rejecting the application for approval under section 80G(5)(iii) of the Act is factually incorrect, legally unsustainable, and deserves to be set aside. It was argued that the CIT(Exemptions) erred in concluding that the trust was formed for the benefit of a particular community or for religious purposes. The assessee clarified that its activities are purely charitable in nature and open to all sections of society, without any....
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.... considering the submissions already placed on record. The appellant should have been given an opportunity to provide clarifications or additional documents, which was unjustly denied by CIT(Exemptions). The counsel for the assessee also submitted that the rejection order runs contrary to several judicial precedents wherein approval under section 80G has been granted to charitable institutions despite the presence of incidental religious activities. In support of this, reliance was placed on several decisions in which it was held that the presence of minor or incidental religious activity does not disqualify a trust from getting 80G approval, so long as its primary purpose remains charitable. It was also submitted that the trust has been ac....
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....y for charitable purposes. However, the assessee has placed on record audit reports in Form 10B for FYs 2022-23 and 2023-24, duly certified by a Chartered Accountant, which categorically state that no part of the expenditure was incurred for private religious purposes or for the benefit of any particular religious community or caste, as per clause (d) and (e) of para 30 of the said reports. Further, we note that the assessee has contended that any religious activity, if undertaken, is incidental and falls within the permissible limit of 5% as provided under section 80G(5B) of the Act. This aspect, which is a factual matter requiring computation of religious versus charitable expenditure, has not been properly examined or verified by the CIT....