Shri Gaushala vs CIT Exemptions & Anr.

PER RAMIT KOCHAR, AM:

This appeal is filed by the assessee against order passed by Learned Commissioner of Income Tax (Exemptions), Chandigarh [CIT(E), in short] dated 16.01.2026( DIN & Notice No. ITBA/EXM/F/EXM45/2025-26/1084874624(1)) rejecting application filed by the assessee for grant of approval u/s 80G(5) of the Income Tax Act, 1961 (“the Act” in short).

Brief facts of the case are that assessee has filed an application dated 26.09.2025 in Form No.10AB for grant of approval u/s 80G(5) of the 1961 Act, before learned CIT(E). The Ld. CIT(E) dismissed the application of the assessee on the grounds that the assessee is engaged in religious activities. The assessee has incurred and booked religious expenses under the head ‘Mandir Expenses’ and ‘Mandir Construction’ . Thus, as per ld. CIT(E) , the nature of such expenditure as is reflected in its Income and Expenditure A/c and Balance Sheet clearly indicates that the activities carried out by the assessee are religious in nature. Thus, the ld. CIT(E) rejected the application filed by the assesse

Aggrieved, the assessee has filed appeal before the Tribunal. The ld. Counsel for the assessee submitted that the assessee is engaged in charitable activities and not in religious activities . It was submitted that the assessee’s expenditure on ‘Mandir’ are miniscule to the tune of Rs. 68,220/- as against total income of Rs. 2,42,93,068/- , which is merely 0.28% of income. It was submitted that even in earlier years, the expenditure on ‘Mandir’ were miniscule. It was submitted that no expenditure on Mandir Construction was incurred during the year. It was submitted that the expenses are within 5% limit as stipulated u/s 80G(5B) . The assessee has filed paper book containing 67 pages. It was submitted that earlier department granted approval u/s 80G. It is claimed that the assessee is engaged in maintaining ‘Gaushala’ housing 2000 cows. It is claimed that the assessee is not doing any religious activities. It is claimed that the assessee has incurred expenses for ‘Gau Puja’ and ‘havan’ under the head ‘Mandir’ .

We have considered rival contentions and perused the materials available on record, which are culled out in preceding para’s of this order and are not repeated again. It is observed that the application for approval u/s 80G(5) was rejected by ld. CIT(E). The assessee has submitted that the ld. CIT(E) did not understood the contentions of the assessee in proper perspective. The assessee has now claimed that it is not engaged in any religious activities rather the assessee is running and maintaining ‘Gaushala’ wherein 2000 cows are being housed and looked after. The assessee has filed audited financial statements, and has claimed before us that the assessee has incurred miniscule expenditure on ‘Mandir’. It is claimed that such expenditure is within threshold limit prescribed u/s 80G(5B). It is also claimed that in earlier years also , the expenses on ‘Mandir’ were miniscule vis-à-vis total income. It is also claimed that no expenditure has been incurred on construction of ‘Mandir’ during the year under consideration.. It is also claimed that the expenses on ‘Mandir’ are related to ‘Gaupuja’ and ‘Havan’. All these contentions required verification by the authorities . Keeping in view facts and circumstances of the case and in the interest of justice and fairness to both parties, we are of the considered view that end of the justice will be met that one more opportunity being granted to the assessee, and we are inclined to send back the matter back to the file of the ld. CIT(E) to denovo decide the application for approval u/s 80G. The ld. CIT(E) shall afford opportunity of being heard to the assessee. The assessee is directed to co-operate with ld. CIT(E) and submit all necessary updated details. The orders of the ld. CIT(E) , dated 16.01.2026 is set aside and the matter is restored back to the file of the ld. CIT(E) , as directed above.We clarify that we have not commented on the issues on merit , and all contentions are kept open. The appeal of the assessee is allowed for statistical purposes, in the manner as indicated above. We order accordingly.

In the result, the appeal filed by the assessee is allowed for statistical purposes.