Kabir Kirti Mandir Kashi Vs CIT (Exemption) (ITAT Rajkot)
Income Tax Appellate Tribunal (ITAT) in Rajkot has granted approval under section 80G to the Kabir Kirti Mandir Kashi Trust, ruling that its dominant charitable purpose outweighs its religious objects. The tribunal observed that the trust’s main activities, such as feeding the poor and providing education and shelter, were charitable in nature. It held that the trust’s limited religious activities and corresponding expenditure, which were within the permissible 5% threshold under section 80G(5B), did not disqualify it from receiving the approval. The ITAT, therefore, set aside the rejection by the Commissioner of Income Tax (Exemptions) and directed the grant of the 80G(5)(iii) registration, highlighting that the religious objects were merely ancillary to the primary charitable mission.
Background
The Trust, established in 1974 at Kashi, filed Form 10AB electronically seeking approval u/s 80G(5)(iii). CIT(E) rejected the application on 25.12.2024 holding that the trust’s aims & objects (such as constructing monuments of Kabir Saheb, publishing & distributing religious literature, conducting spiritual lectures, providing facilities for saints & devotees) were religious in nature. According to CIT(E), the trust was a composite religious-cum-charitable trust & hence barred by section 80G(5).
Assessee’s Arguments
- Though deed contained some religious objects, actual income was applied only for charitable activities like food, clothing, shelter, & education.
- No expenditure was incurred on religious objects beyond the permissible 5% threshold u/s 80G(5B).
- The Finance Bill, 1999 amendment permitted limited religious expenditure without affecting eligibility for 80G approval.
- Charitable objects were dominant; religious references were ancillary & inspired by Kabir’s philosophy.
- Reliance was placed on K.V.C. Trust v. DIT(E), Chennai [2011] 11 taxmann.com 91, where ITAT held that mentioning limited religious activity among several charitable objects does not disqualify a trust.
Revenue’s Stand
