TaxTMI 
TaxTMI 
2026 (7) TMI 30
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.... short "NFAC"), Delhi vide order dated 11.09.2025 passed for A.Y. 2017-18. 2. The Department has raised the following grounds of appeal: "1. Whether on the facts and in circumstances of the case, Ld. CIT(A), NFAC is justified in deleting the addition of Rs. 3,40,68,567/- (11529801 plus 22538766) made on account of expenditure being non charitable in nature for the year under consideration." 3. The brief facts of the case are that the assessee is a public charitable trust registered under the Bombay Public Trust Act, 1950 and had been earlier granted registration under section 12A and approval under section 80G of the Income-tax Act, 1961 ("the Act"). The trust is stated to be engaged in activities such as education, medical r....
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....ed only a part of the total revenue expenditure and disallowed expenses relating to activities such as "Pran Pratistha," "Havan Kund," and "Ann Kshetralay," on the ground that these were connected with religious activities and not in accordance with the charitable objects of the trust. The Assessing Officer thus assessed the total income at Rs. 31,26,13,761/- as against the returned income of Nil. 6. Aggrieved by the assessment order, the assessee preferred an appeal before the CIT(Appeals) and filed written submissions challenging the findings of the Assessing Officer. The assessee submitted that it is a duly registered charitable trust with objects that are broad and encompass activities for general public welfare. It was contended tha....
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....de by the Assessing Officer were substantially similar to those made in earlier years and that in the assessee's own case for earlier assessment year, the CIT(Appeals) had allowed the benefit of sections 11 and 12 of the Act. The CIT(Appeals) observed that the facts for the year under consideration were not materially different and no fresh evidence had been brought on record by the Assessing Officer to justify a different view. 8. On the issue of denial of exemption, the CIT(Appeals) analyzed the reasoning of the Assessing Officer and the submissions of the assessee. The CIT(Appeals) noted that the Assessing Officer had primarily relied on the characterization of the prayer hall as a temple and the presence of certain religious rituals ....
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....ies without adequately examining whether such expenses were in furtherance of the objects of the trust. The CIT(Appeals) observed that activities like Ann Kshetralay involve distribution of food to the public and are inherently charitable. Considering the overall nature of activities and the absence of specific findings to the contrary, the CIT(Appeals) held that the disallowance of expenditure was not justified. 12. An important factor in the decision of the CIT(Appeals) was the reliance on earlier appellate orders in the assessee's own case, wherein similar issues had been decided in favour of the assessee. The CIT(Appeals) followed the principle of consistency and held that in absence of any change in facts or law, a different view co....
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....cation, medical relief, financial assistance and activities of general public utility. During the year under consideration, the assessee carried out various activities including construction of a prayer hall and running of "Ann Kshetralay" for distribution of food to the public at large. The Assessing Officer, however, proceeded to draw an adverse inference primarily on the basis that the said prayer hall was in the nature of a temple dedicated to "Khodal Maa" and that certain religious ceremonies were conducted therein, and on that basis concluded that the activities of the trust were not charitable. 17. The learned CIT(Appeals), after examining these very facts in detail, has recorded a categorical finding that the Assessing Officer ha....
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....ial discipline demands that when an issue has been decided by the Coordinate Bench on identical facts in the assessee's own case, the same view should be followed in subsequent years unless there is a material change in facts or law, which is not the case here. 20. Even on an independent evaluation of the findings of the Assessing Officer, we find that the denial of exemption is based on presumptions rather than on cogent evidence. The mere existence of a prayer hall or performance of certain rituals cannot lead to the conclusion that the trust is not carrying on charitable activities, particularly when the predominant activities such as education, medical relief and food distribution are not disputed. Further, there is no finding that t....