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Judgment
PER MADHUMITA ROY, JM:
The instant appeal filed by the assessee is directed against the order passed by the Ld. CIT(E) dated 16.01.2026, whereby and whereunder the approval under section 80G(5)(ii) of the Income Tax Act, 1961 (hereinafter referred to as the ‘Act’) sought by the Assessee vide application dated 24.09.2025 stood rejected on the ground that the Assessee trust is religious in nature. According to the Ld. CIT(E),in view of the provisions of law particularly Explanation 3, even if one of the purposes of the trust is wholly or substantially religious in nature, approval under Section 80G(5) cannot be granted.
From the trust deed dated 16 April 1981, appearing at page Nos. 1 to 13 of the paper book filed before us, it appears that the object of the Trust is charitable in nature, including distribution of food and relief to the poor persons, running and maintaining cow, shelter, distribution of clothes to poor. The trust has been granted registration under Section 12A of the Act from the year 1981 and current registration under Section 12A of the Act under the amended scheme is still valid for A.Y 2036-37, which is appearing at Page Nos. 14 to 18 of the paper book filed before us. Relevant to mention that the assessee was already granted approval under Section 80G(5)(ii) of the Act in the year 2007, copy of his Annexure at page 19 of the paper book.
It is the case of the assessee that once the trust is actively engaged in the above charitable activities, falling squarely within the definition of “charitable purpose” under section 2(15) of the Act, which are directed towards advancing relief to the poor and advancement of objects of general public utility in terms of Section 2(15) of the Act and further that when the object of the Trust or the activities of the trust are not directed towards any particular religion or caste or creed and as such the allegation of religious activity, since factually, erroneous and unfounded, the assessee is entitled to the relief claimed under Section 80G of the Act. In this regard, the Ld. AR also relied upon the financial statements annexed to the paper book appearing from page Nos. 31 to 36, wherefrom it appears that the only expenses the Trust has incurred is towards the aforesaid activities which cannot be considered as religious in nature at any cost.
We have further considered the judgment passed by the Coordinate Bench in the case of Shri Baba Balak Puri ji, Charitable Trust-Vs- ITO in ITA No. 5833/Del/2025, where the Trust carried out various charitable activities, and even it’s object relating to running or maintaining of Mandir and Dharamsala did not override other predominant objects, it was held not to be considered as the purpose of the assessee Trust is wholly or substantially of a religious nature within the meaning of Explanation 3 of Section 80G and therefore, the relief sought for by the assessee under Section 80G was allowed.
The Ld. DR on the other hand could not controvert such submission made by the assessee, neither could come with any judgment, contrary to the ratio laid down as above.
Thus, under the fact and circumstances, having regard to the entire aspect of the matter, when the assessee’s activities are purely for charitable purposes as narrated hereinabove, the rejection of application under Section 80G of the Act is found to be bad in law and therefore, not sustainable, and thus quashed. The assessee be given approval under Section 80G of the Act immediately.
In the result, appeal filed by the Assessee is allowed.