Prabandhakareni Committee Vs CIT (ITAT Delhi)
Delhi ITAT: Charitable Status Cannot Be Re-Characterised as ‘Religious-cum-Charitable’ Without Change in Objects or Cogent Evidence
The Delhi ITAT allowed the appeals of The Prabandhakareni Committee, Shree 1008 Bhagwan Parsavnath Digamber Jain Atishay Kshetra, Hansi, holding that the Commissioner (Exemptions) could not arbitrarily alter the institution’s status from “charitable” to “religious-cum-charitable” or reject approval under Section 80G in the absence of any change in its objects, activities or supporting evidence.
The assessee had enjoyed registration under Sections 12A/12AA and approval under Section 80G since 1993, which had been consistently renewed. While granting renewal under Section 12AB, the CIT(E) changed the nature of the institution to “religious-cum-charitable” and simultaneously rejected renewal under Section 80G by invoking Explanation 3 to Section 80G, alleging that the assessee was engaged in religious activities.
The Tribunal found that the assessee’s objects had remained unchanged since its incorporation in 1992, a fact not disputed by the Revenue. It also noted that the Department itself had consistently recognised the assessee as a charitable institution and had granted registration under the new regime in 2021. In such circumstances, the rule of consistency applied, and the Department could not re-characterise the institution without recording any adverse findings or producing cogent evidence.
The Tribunal further observed that the CIT(E) had failed to identify any object that was wholly or substantially religious and had made no effort to establish or quantify any expenditure on religious activities exceeding the permissible limit under Section 80G(5B). The Revenue also failed to rebut the assessee’s contention that none of its dominant objects was religious and that its benefits were not confined to any particular religious community or caste.
Holding that settled charitable status cannot be disturbed without cogent evidence, the Tribunal set aside the orders of the CIT(E), restored the assessee’s status as a “charitable” institution, and directed grant of registration under Section 12AB(1)(b) and approval under Section 80G. The appeals were accordingly allowed.
FULL TEXT OF THE ORDER OF ITAT DELHI
The above captioned appeals are preferred by the assessee are directed against the order dated 21.01.2026 and 16.01.2026 passed by the ld. Commissioner of Income-tax (Exemptions)-Delhi [hereinafter referred to as the Ld. CIT(E)] for seeking registration of trust under Section 12AB(1)(b) and 80G of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).
