Anandavalli Kaingarya Sabha Vs CIT (ITAT Chennai)
Chennai ITAT Remands U/s 80G Rejection, Holds Religious Trust Cannot Be Denied Approval Without Verifying Nature of Expenditure
The Chennai ITAT set aside the rejection of approval under section 80G and remanded the matter to the CIT(E), holding that mere existence of religious objects or expenditure on pooja cannot, by itself, justify denial of 80G registration. The Tribunal observed that the trust’s objects included education, Vedic teaching, medical camps, relief to the poor, scholarships, cultural programmes, and other charitable activities benefiting the public without discrimination. It further noted that the CIT(E) had failed to examine the actual break-up of expenditure to determine whether the trust exceeded the limit prescribed under section 80G(5B) for expenditure of a religious nature. Relying on the Bangalore Tribunal’s decision that teaching Vedas is not necessarily a religious activity but may constitute a charitable activity, the Tribunal directed the CIT(E) to re-examine the expenditure in light of section 80G(5B), relevant judicial precedents, and the true nature of the trust’s activities after providing the assessee a reasonable opportunity of being heard. The appeal was allowed for statistical purposes.
Cases Discussed
- Ashvalayana Vrunda vs ITO (ITAT Bangalore), ITA No.1084 & 1085/Bang/2022 dated 04.01.2023
FULL TEXT OF THE ORDER OF ITAT CHENNAI
