The Missionary Brothers Of Charity Contemplative vs Commissioner Of Income Tax Exemption Chandigarh

PER SHRI VIKAS AWASTHY, JUDICIAL MEMBER:

This appeal by the assessee is directed against the order of Commissioner of Income Tax (Exemption), Chandigarh [in short ‘the CIT(E)’] dated 09.02.2026.

Shri George Koshi, appearing on behalf of the assessee submits that the assessee is a charitable trust registered u/s.12A of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). The assessee is engaged in charitable activities of providing food, clothes, shelter and medical aid to the mentally challenged and abundant children. The CIT(E) rejected assessee’s application for grant of approval u/s.80G of the Act holding that the assessee is engaged in religious activities. The solitary reason for taking such a view by the CIT(E) is, that the assessee has claimed worship expenses of Rs.57,917/-. The CIT(E) has failed to take note of the fact that substantial expenditure is incurred by the assessee towards boarding, clothing, education, running of ambulances, children welfare and other charitable activities. The worship expenses are minuscule part of total expenditure incurred by the assessee for running of home for mentally handicap children. The ld. Counsel prayed for grant of approval u/s.80G of the Act. The ld. Counsel submits that in the absence of benefit of approval u/s.80G of the Act, the donations have dried up.

Per contra, Shri Om Prakash, representing the department vehemently supported the impugned order and prayed for dismissing appeal of the assessee.

Both sides heard, orders of the lower authorities examined. The assessee is in appeal against the order of CIT(E) in rejecting assessee’s application for grant of approval u/s.80G of the Act. A perusal of the impugned order reveals that the assessee’s application for approval u/s.80G of the Act has been rejected by the CIT(E) solely for the reason that the assessee has claimed worship expenses of Rs.57,917/-. The assessee is running home for mentally handicap children and is also engaged in other charitable activities. The charitable activities carried out by the assessee are not in dispute. We find that the worship expenditure claimed by the assessee is minuscule part i.e less than 1% of total expenditure on charitable activities. The approval u/s.80G of the Act cannot be denied where charitable activities carried by the assessee are not in dispute and substantial expenditure has been incurred on charitable activities irrespective of caste, creed, colour, race, nationality or culture. At the most worship expenditure could be disallowed. Thus, in light of facts of the case, we direct the CIT(E) to grant approval u/s.80G of the Act to the assessee.

In the result, impugned order is set aside and appeal of the assessee is allowed.