Shree Modeshwari Devsthan Trust Vs CIT (Exemption) (ITAT Ahmedabad)
The Income Tax Appellate Tribunal, Ahmedabad Bench, considered an appeal filed against the order dated 30.12.2024 passed by the Commissioner of Income-Tax (Exemption), rejecting the trust’s application in Form 10AB for final approval under Section 80G(5) of the Income-tax Act, 1961. The rejection also resulted in cancellation of the provisional approval earlier granted.
The Commissioner (Exemption) held that the objects of the trust were predominantly religious in nature and treated it as a composite religious-cum-charitable trust, thereby concluding that it contravened Section 80G(5)(ii). In support of this conclusion, the Commissioner relied on various clauses of the trust deed relating to establishment and maintenance of temples, installation of idols, celebration of religious festivals, organizing spiritual events such as Bhagavat Saptah, Ramayan Katha, Mahabharata Katha, Navratri celebrations, mass marriage functions, group Yagna, construction of community halls, conducting foreign tours for preservation of religious and cultural heritage, and other temple-related and spiritual development activities. The Commissioner also referred to activities undertaken by the trust, including Chaitra Havan, Patotsav, Annakut and Navratri celebrations, to conclude that the trust was mainly engaged in religious activities.
Aggrieved by the rejection, the trust contended before the Tribunal that its objects and activities were duly explained before the Commissioner and that expenditure on religious activities was negligible. It was argued that the Commissioner failed to properly consider the explanations and materials placed on record.
