Shri Sadguru Nirupadeshwara Nitya Dasoha Charitale Trust Vs ITO (ITAT Bangalore)
Charitable or Religious- Trust wrongly Classified as Religious – 12AB & 80G to be reconsidered
ITAT Bangalore: Classification of Trust as Religious Instead of Charitable & Denial of 80G Approval Remanded for Fresh Consideration
Bangalore ITAT dealt with appeals filed by Shri Sadguru Nirupadeshwara Nitya Dasoha Charitable Trust against the order of CIT (E), Bangalore, dated 26.09.2024. CIT (E) had granted registration u/s 12AB but classified the Trust as religious in nature & simultaneously cancelled the approval u/s 80G on the ground that donations to a religious trust were not eligible for deduction.
Assessee trust was constituted on 13.02.2009 with objectives including feeding the poor, supporting pilgrims & devotees, running educational institutions, healthcare facilities, rural development programs, women empowerment initiatives, environmental protection & social welfare activities. A supplementary trust deed was executed on 02.09.2020 expanding these charitable objectives further, including free hostels for students, healthcare awareness programs, vocational training, rural development & environmental conservation. Assessee was earlier granted provisional registration u/s 12A in May 2021 & later final registration on 26.09.2024 u/s 12AB, but CIT (E) treated it as a religious trust. Consequently, the 80G approval was denied on the same basis.
