Jain Swetamber Terapanthi Charitable Trust Vs CIT(Exemption) (ITAT Delhi)
Summary: The Delhi ITAT considered two appeals concerning the assessee-trust’s applications for registration under Section 12AB and approval under Section 80G for A.Y. 2025-26, after the CIT(E) treated the trust as a “religious and charitable” institution and rejected its application under Section 80G(5)(ii). The Tribunal examined the trust’s stated objects, which included advancement of spiritual, moral and secular education, promotion of non-violence and truthfulness, spiritual and moral upliftment, fellowship among people of all communities, cultural and social activities, scholarships, education, medical relief, relief of the poor and advancement of other objects of general public utility. It found that there was no clause, object or activity in the trust deed referring to, authorising or directing the trust towards any religious purpose, religious institution or place of worship, and held that the objects and activities qualified as charitable in nature under Section 2(15) of the Income-tax Act, 1961. The Tribunal further noted that the trust had previously been granted registration under Sections 12A and 80G and that the CIT(E) had not identified any change in its objects or activities. Following the rule of consistency referred to in CIT(E) vs. Rajkot Jilla Gayatri Parivar Trust, the Tribunal held that the assessee should be recognised as a charitable society and directed the CIT(E) to grant registration under Section 12AB as a charitable entity and registration under Section 80G. Both appeals were accordingly allowed.
Spiritual and Moral Advancement Is Not Inherently Religious: Delhi ITAT Grants Charitable Status and Section 80G Approval to Jain Trust
The Delhi ITAT held that the Jain Swetamber Terapanthi Charitable Trust could not be classified as a “religious-cum-charitable” institution merely because its objects included the advancement of spiritual and moral education, non-violence, truthfulness, fellowship and Indian philosophy.
On examining the trust deed, the Tribunal found no clause or activity directed towards any religious purpose, religious institution or place of worship. Its activities relating to education, scholarships, relief of the poor, medical relief and general public welfare were available to people of all communities and qualified as “charitable purpose” under Section 2(15).
The Tribunal also noted that the trust had enjoyed Sections 12A and 80G registration since 1 April 2007, and the CIT(E) had identified no change in its objects or activities. Applying the rule of consistency laid down by the Supreme Court in CIT(E) v. Rajkot Jilla Gayatri Parivar Trust, the ITAT directed the CIT(E) to register the trust as a charitable entity under Section 12AB and grant it approval under Section 80G. Both appeals were allowed.
List of Cases Discussed / Relied Upon
- Umaid Charitable Trust Vs Union of India,[2008] 171 Taxman 94 (Rajasthan) — relied upon by the assessee in support of the contention that the trust’s activities should not be treated as religious merely because of its objects concerning spiritual and moral advancement.
- World Sankirtan Tour Trust Vs CIT(E),ITA No.1462 & 1463/CHD/2025, order dated 22.07.2026 — relied upon by the assessee in support of its contention that the relevant activities were not religious in nature.
- CIT(E) vs. Rajkot Jilla Gayatri Parivar Trust,[2020] 117 Taxman.com 122 (SC) — relied upon in applying the rule of consistency where registration had previously been granted and there was no change in the aims, objectives or activities.
FULL TEXT OF THE ORDER OF ITAT DELHI
The above-captioned two appeals are preferred by the assessee against the seperate orders dated 03.02.2026 and 05.02.2026, passed by the Learned Commissioner of Income Tax (Exemptions)-Chandigarh (hereinafter referred to as ‘ld. CIT(E)’) for registration and approval of Trust under Section 12AB(I) (b)(ii) and 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) for A.Y. 2025-26.
2. Since the above captioned two appeals were heard together and the facts in issues are identical, both the appeals are being disposed of by this common order for the sake of convenience and brevity.
3. The grounds of appeal raised by the assessee in ITA No. 3550/Del/2026; reads as under:
“1. having regards to the facts and circumstances of the case, the Ld. CIT (Exemptions) has erred in law and on facts in treating the nature of the assessee as “religious cum charitable” and that too only on the basis of surmises and conjectures.
2. That having regards to the facts and circumstances of the case, the Ld. CIT (Exemptions) has erred in law and on facts in ignoring that the activities actually carried out by the trust are charitable and for public welfare, and not religious in nature.
3. That having regards to the facts and circumstances of the case, the Ld. CIT (Exemptions) has erred in law and on facts in passing the order without following the principles of natural justice and without giving adequate opportunity of being heard.
4. That the appellant craves the leave to add, withdraw, alter or modify any ground of appeal at any stage of hearing and that the grounds above are without prejudice to each other.
4. The grounds of appeal raised by the assessee in ITA No. 3551/Del/2026; reads as under:
1. That having regards to the facts and circumstances of the case, the Ld. CIT (Exemptions) has erred in law and on facts in rejecting the application for approval under section 80G(5) of the Income Tax Act, 1961, without appreciating that the appellant trust is a bona fide charitable institution engaged in genuine charitable activities.
2. That having regards to the facts and circumstances of the case, the Ld. CIT (Exemptions) has erred in law and on facts in rejecting the approval under section 80G of the Act by treating the nature of the assessee as “religious cum charitable” and that too only on the basis of surmises and conjectures.
3. That having regards to the facts and circumstances of the case, the Ld. CIT (Exemptions) has erred in law and on facts in ignoring that the activities actually carried out by the trust are charitable and for public welfare, and not religious in nature.
4. That having regards to the facts and circumstances of the case, the Ld. CIT (Exemptions) has erred in law and on facts in passing the order without following the principles of natural justice and without giving adequate opportunity of being heard.
5. That the appellant craves the leave to add, withdraw, alter or modify any ground of appeal at any stage of hearing and that the grounds above are without prejudice to each other.
5. Brief facts of the case are that the assessee filed applications in Form 10AB for grant of approval u/s 12AB and u/s 80G(5). The CIT(E) vide order dated 05.02.2026, granted approval u/s 12AB treating the assessee as ‘Religious and charitable’ institution. Simultaneously, the CIT(E) rejected the application of the assessee filed in Form 10AB u/s 80G(5)(ii) of the Act holding that the Trust is engaged in religious activities which cannot be considered to be for charitable purposes as per the provisions of section 80G(5) of the Act.
6. Now the aggrieved assessee is before us.
7. Before us, ld. Counsel submitted that the denial of registration under section 80G on account of the fact that the assessee has been considered as religious organization and engaged in the activity of spreading of Indian philosophy, an act which is considered as religious, is arbitrary. The assessee also submits that the activities of the Trust cannot be considered as religious and has relied on the following decisions:
- Umaid Charitable Trust vs. Union of India; [2008] 171 Taxman 94 (Rajasthan)
- World Sankirtan tour Trust vs CIT(E); ITA No.1462 & 1463/CHD/2025 order dated 22.07.2026
8. It is also submitted by the assessee’s Counsel that the aims and objectives as defined in the trust deed is to promote the spiritual and moral objects. The object of the trust had not distinguished between any person and religion but is actively engaged in supporting cultural and social activities leading to moral and spiritual activity. Ld. AR of the assessee further submitted that the assessee was granted registration under section 12A and 80G in the past since 01.04.2007 till A.Y. 2026-27 and following the rule of consistency as propound by the Hon’ble Supreme Court in the case of CIT(E) vs. Rajkot Jilla Gayatri Parivar Trust [2020] 117 Taxman.com 122 (SC) that when the registration has been granted from year to year since 1993 and there is no change in aims and objectives or activities, the assessee is eligible for grant of registration.
9. Per contra, ld. DR relied on the order of the ld. CIT(E).
10. We have heard the rival submissions and perused the material available on record. To adjudicate on the issue of the assessee being a religious entity, we take a look at the aim and objectives of the assessee, which are as followed:
1. To promote and encourage advancement of spiritual, moral and secular education.
2. To promote the principles of non-violence, truthfulness, unstealing, non- possession and celibacy.
3. To develop sense of respect for spiritual and moral values in every sphere of life among the people.
4. To advance and support movement for spiritual and moral upliftment of the people.
5. To develop the spirit of understanding and fellowship among the people of all community in India.
6. To develop the feeling of brotherhood, self reliance and nationalism among the people of India and to act for their Social, moral and spiritual upliftment.
7. To start and support cultural and social movements and activities leading to moral and spiritual renaissance.
8. To organise seminars, programmes, functions and lectures of the people of high spiritual order and the preachers of the philosophy of “Non-Violence” “Preksha”, “Jeevan Vigyan” and “Anekant” and scholars of outstanding national and inter- national fame and to arrange for their stay whenever and wherever required for fulfillment of the aforesaid purposes.
9. To open avenues to spread the learning of Indian Philosophy in all its aspects among the people. 10.
(a) To Grant Scholarships, stipends and other emoluments to students, scholars and research workers whether in India or abroad carrying on researches in Indian and other philosophies,
b) To grant scholarships, stipends, awards and loans to deserving students for encouraging them to carry on their studies.
c) To acquire, establish, start, aid, run, build, maintain or manage schools, colleges, libraries, reading rooms, rest houses and hostels for spreading education and literacy among the people.
(d) To build, acquire and maintain smarks in the memory of persons who have rendered conspicuous services to the cause of Rationalism and honour the people of high morals and character in the Public.
e) To open, found, establish, promote, setup, run, maintain, assist, finance, support and/or aid or help in the setting up and/or maintaining and/or running any institution, centre, premises etc. meant for relief of the poor, advancement of education, medical relief and advancement of any other object of general public utility.
11.To raise subscriptions and donations from the public and to receive monetary grants from local Authorities and Governments.
12. To assist, promote, aid or subscribe to the establishment and maintenance of any institution, association, fund or trust of Jain philosophy engaged in charitable purposes.
13. To do all such other things and acts as are incidental or Conducive to or be deemed necessary for the attainment of the objects of the Trust.
14. To subscribe and to become member, to co-operate with any institute whose objects are relevant or similar or in any way helpful to this Trust.
15.To merge itself with any other institute established for objects similar or relevant to that of its own.
11. From a careful perusal of the aims and objectives of the Trust, we find that there is no clause, object or activity in the Trust deed of the Society which refers to, authorizes, or is directed towards any religious purpose, religious institution or place of worship. The other objectives of the institution are to promote and encourage advancement of spiritual, moral and secular education; to respect spiritual and moral values in every sphere of life among the people of all community in India. In such factual matrix, we are of the view that the objects and activities of the Trust qualifies as charitable in nature and is covered under the definition of “charitable purpose” under Section 2(15) of the Act. We do not find any factual foundation for the Ld. CIT(E) to have classified the assessee as a religious and charitable entity.
12. We further find that the Trust had been granted registration u/s 12A and 80G in the past and the CIT(E) has not pointed out any change in the activities or objectives of the Trust to consider that the Trust has deviated from its past objects or activities. Following the decision of Hon’ble Supreme Court in the case of CIT(E) vs. Rajkot Jilla Gayatri Parivar Trust (supra), we hold that the assessee be recognized as a charitable society and is eligible for grant of registration under section 12AB of the Act as well as 80G of the Act. We accordingly, direct the Ld. CIT(E) to grant registration u/s 12AB of the Act as charitable entity and to grant registration u/s 80G of the Act. Both the appeals of the assessee are, therefore, allowed.
13. In the result, both the appeals filed by the assessee in ITA Nos.3550 and 3551/Del/2026 are therefore, allowed.
Order pronounced in the open court on 25.08.2026.
