Shree Ayyappa Samithi vs Commissioner of Income Tax (Exemption)

PER MADHUMITA ROY, JM:

The instant appeal filed by the assessee is directed against the order dated 08.03.2026 passed by the Ld. Commissioner of Income Tax (Exemptions), Delhi, whereby and whereunder the application dated 30.09.2025 made in Form No. 10AB for approval under Section 80G of the Income Tax Act, 1961, (hereinafter referred to as the ‘Act’) by the appellant trust stood rejected.

It is the case of the Revenue, that the assessee Trust has incurred religious expenditure exceeding 5% of its total receipt and since engaged in religious activities and running/maintaining a temple under the name of Shree Dharma Sastha Temple, not eligible for the grant of approval under Section 80G of the Act whereas the financial statements speaks otherwise as the case made out by the assessee which has not been considered by the Ld. CIT(E) in its proper perspective and particularly when the assessee is carrying out activities both religious and charitable and not exceeding expenditure for religious purposes during the year 5% of the total receipts necessary approval under Section 80G of the Act ought to have been granted to the assessee as argued by the Ld. Counsel appearing for the assessee.

Thus, having regard to the entire aspect of the matter, we dispose of this appeal by setting aside the issue to the file of the Ld. CIT(E) for consideration of the same afresh upon considering the evidence on record or any other evidence which the assessee may choose to file at the time of hearing of the matter. The assessee’s appeal is, thus, allowed for statistical purposes.