TaxTMI 
TaxTMI 
2026 (9) TMI 987
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....EXEMPTION), NEW DELHI in rejecting the application of the Appellant for registration u/s 80G (5) (i) of the Income Tax Act 1961 is bad in law. 2. That the Order of the Learned COMMISSIONER OF INCOME TAX (EXEMPTION), NEW DELHI is against the principles of natural justice as no query was raised during the proceedings u/s 80G (5) (i) for the reasons given in rejection order dated 20/03/2026. 3. That the Order of the Learned COMMISSIONER OF INCOME TAX (EXEMPTION), NEW DELHI is not sustainable in law inasmuch as the Learned COMMISSIONER OF INCOME TAX (EXEMPTION), NEW DELHI in Col. 2A in Form 10AD has admitted the nature of activities as Charitable. 4. That the Order of the Learned COMMISSIONER OF INCOME TAX (EXEMPTION), NEW DELHI is not sustainable in law inasmuch as the Learned COMMISSIONER OF INCOME TAX (EXEMPTION),NEW DELHI vide Order dated 20/03/2026 has granted the Appellant registration u/s 12AB (1)(b) for the assessment year 2027 28 to assessment year 2023-37 by holding the activities of the Appellant on identical facts. 5. That the Order of the Learned COMMISSIONER OF INCOME TAX (EXEMPTION). NEW DELHI is not sustainable in law on facts and law....
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....ring the assessment proceedings and the registration u/s 80G of the Act cannot be rejected on that ground. It is further argued that the activity of the assessee/appellant is necessarily charitable as stands recognized while granting approval u/s 12AB of the Act. It is further argued that one of the object of the trust is held to be religious in nature by ld. CIT(E), as it has the object to construct a mandir and secondly to arrange special and seasonal worship of Kali Mata, Durga Mata and other gods and goddesses. It is argued that the objects of the trust cannot take away its dominant purpose of charitable nature, which is charitable activity and one of object of trust, constructing a mandir cannot be assigned to any particular religion because the said activity is open to every caste, creed & community and not confined to only any particular religious community. The ld. AR has taken us to page 36 of the paper book, where one of the aim and objects as per Memorandum of Association is "(m) to organize religious operations amongst people without distinction of caste, creed or religion in times of natural calamities, etc." In that regard, the ld. AR has relied the case of Hon'ble Su....
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....d 19.08.2026 had the occasion to deal the identical issue in detail and after detailed discussion on all aspects of a case of similar nature has decided in favour of assessee trust by directing the ld. CIT(E) to grant approval in four weeks u/s 80G of the Act. The relevant observations contained in Para 3 to 9 are extracted below as under: "3. Ld. Counsel for the assessee has submitted that without examining the financials of the assessee ld. Prescribed authority has concluded about religious activities being conducted by the assessee while that is not the case. It was submitted that after decision of Upper Ganges Sugar Mills Ltd. Vs. CIT (supra) there has been amendment in the Act, and our attention was drawn to sub-section (5B) of Section 80G inserted by Finance Act, 1994 w.e.f 01.04.1994 which provides that wherein institutions make expenditure in the relevant year, which is of religious nature for an amount not exceeding 5% of its total income in that previous year then, for the previous year, the institution shall be deemed exempted u/s 80G. Ld. Counsel relied decisions in CIT (Exemptions) Vs. Tulshishyam Mandir Society, Junagadh (2026) (6) TMI 832 - Gujarat High Cour....
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....2025 available at page No. 40-101 of the paper book and the same show that actually no expenditure on alleged religious activities has been incurred. Rather, it is established that the Society maintained two set of financials, one for Baba Banda Singh Bahadur Public School and another for remaining activities of the Society and the financials of the applicant Society do not show any expenditure was made for religious purposes. The decisions relied by the ld. Counsel with regard to benefit of sub-section (5B) of Section 80G of the Act certainly deserves to be relied by us. 6. Further, having perused the Bye Laws of assessee made available at page 14-39 of the PB and which are also reproduced in the impugned order, we are of the considered view that assessee sufficiently establishes that there is actually no case of alleged religious activities. The same reflect that the primary object is to enhance cohesion between different communities, to work for establishing religious sentiment in Indian children and to promote their allegiance towards Indian culture. Further they have objective of running hospital while keeping itself away from all political activities in every manner.....
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....f India in 1954 during the Shirur Mutt case AIR 1954 SC 282, to decide which religious rituals and activities receive protection under Articles 25 and 26 of the Constitution, should broadly be the parameters to examine if the said activity is religious, so as to deny the approval of benefit of section 80G of the Act. It is only in case of expenses on ERP are made, then that should be examined to establish that the predominant objective is religious activity. Activities like establishing and running hospital, educational institutions, places of rehabilitation of bovine or other animals, Dharamshala, maintaining amenities at religious places of worship or pilgrimages, and such like public utility activities, if are taken up by any institution, trust or society, which also serves any place of worship, by performing essential practices of a religion, then what is material is to examine what is the predominant object and proportionality of expenditures. 9. In the light of aforesaid, discussion made by us, we find that ld. CIT(E) has given a very narrow interpretation to scope of Section 80G, and has thus erroneously dismissed the application of the assessee. We thus, allow the ....
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....er may be directed to do the needful at the assessment stage. Therefore, we are inclined to direct accordingly. 11. The other appeal relates to registration u/s 80G which were denied for the reasons that the application for registration u/s 12AB was denied. Since, we are directed to grant the registration u/s 12AB, we direct the ld. CIT(E) to evaluate the grant of registration u/s 80G as per law. In the result, the appeal filed by the assessee is allowed as per above terms." 7. Respectfully following the judgments of the co-ordinate Bench in ITA No. 1835/Del/2026 and ITA Nos. 8278 & 8279/Del/2025 (referred supra), we have noticed that the facts and circumstances are identical before us in the appeal and therefore the denial of approval u/s 80G of the Act simply on the ground that one of the object of the trust is to construct a temple and to arrange for puja of some deity which cannot be said to be the only dominant purpose of establishing the trust or its activity. While denying the approval, the ld. CIT(E) has ignored the other important objective of the trust as contained in clause (3) sub-clause (3) of the Memorandum of Association placed at page 36 of the papal boo....