Meena Samaj Seva Samiti Trust Vs CIT (ITAT Rajkot)
CIT(E) directed to reconsider 80G approval – Trust serving Scheduled Tribe community not barred under Section 80G(5) – ITAT Rajkot
The Assessee-trust filed an appeal against the order of CIT (Exemption), Ahmedabad dated 21-11-2024, whereby approval u/s 80G(5)(iii) was denied & provisional approval cancelled on the ground that the trust’s objects were “religious in nature.”
Facts
The Meena Samaj Seva Samiti Trust, Gandhidham (Kutch), applied for approval u/s 80G(5)(iii) in Form 10AB. CIT(E) issued notices seeking details of activities & objects. The trust clarified that it worked for the upliftment of the general public & not for any specific caste or creed. However, CIT(E) concluded that the objects-mentioning “religious awakening”-were religious, violating s. 80G(5), & therefore rejected the application while cancelling the provisional 80G approval.
Assessee’s submission
Before ITAT, Assessee Trust argued that the trust belonged to the Meena/Bhil-Meena community, which is notified as a Scheduled Tribe under the Constitution (Scheduled Tribes) Order 1950. Assessee relied on Explanation (1) to Section 80G(5) which specifically provides that “an institution or fund established for the benefit of Scheduled Castes, backward classes, Scheduled Tribes, or of women & children shall not be deemed to be for the benefit of a religious community or caste.” Hence, the trust, serving a Scheduled Tribe, could not be considered as working for a “particular caste” & was eligible for 80G recognition.
