Shreeji Education and Charitable Trust Vs ITO (Exemption) (ITAT Rajkot)
In Shreeji Education and Charitable Trust v. ITO (Exemption) (ITAT Rajkot), the Tribunal allowed the Trust’s appeal and directed grant of regular approval under Section 80G(5) after the CIT(Exemption) rejected the application on the ground that the trust deed contained a “spiritual/religious” object. The Trust had been running two schools since 2013 and held valid registration under Section 12A/12AB w.e.f. 01.04.2022, with audited accounts showing that its income was applied only toward education and no religious activity or expenditure was undertaken. The ITAT held that mere inclusion of spiritual objects in the deed does not automatically bar 80G approval when actual activities remain charitable, especially since the object clause began with “without discrimination of religion or caste” and the Trust had not spent even 1% on religious purposes. Accordingly, ITAT set aside the rejection and ordered approval under Section 80G(5).
Factual Background
- The Trust ran educational schools — clearly charitable activities.
- It held a 12A registration (income-tax exemption for trusts) since 1 April 2022.
- The Trust applied for regular approval under Section 80G(5) to allow donors to claim deductions for contributions.
- The CIT (Exemption) rejected the application primarily because the trust deed included a “religious” object, and the officer viewed this as potentially disqualifying under Section 80G conditions.
Issues Before the Tribunal
1. Whether inclusion of a “religious” object in the trust deed automatically bars 80G approval?
2. Whether the Trust’s actual activities (education only) can be treated as charitable and eligible for approval?
Tribunal’s Findings
