Dharti Ekta Charitable Trust Vs CIT (Exemption) (ITAT Surat)
Income Tax Appellate Tribunal (ITAT), Surat Bench, has overturned an order by the Commissioner of Income-tax (Exemption), Ahmedabad, that rejected an application for approval under Section 80G(5)(iii) of the Income-tax Act, 1961, filed by Dharti Ekta Charitable Trust. The Tribunal’s decision, pronounced on July 21, 2025, emphasizes the fundamental principles of natural justice, restoring the matter to the CIT(E) for fresh adjudication.
The charitable trust had filed an application in Form No. 10AB for the crucial 80G approval, which allows donors to claim tax deductions for contributions made to the trust. The CIT(E) had issued notices for a hearing on September 17, 2024, and November 25, 2024. In the subsequent order dated December 17, 2024, the CIT(E) rejected the application, primarily on the grounds that the trust’s objects were deemed “religious in nature” and not solely “charitable,” as required by Section 80G(5) of the Act. The order specifically noted that one of the trust’s objects involved “religious functions,” which the CIT(E considered to contravene the conditions for 80G approval.
A key point of contention arose from the CIT(E)’s assertion that the trust had “neither filed any submission nor sought any adjournment” in response to the show cause notice dated November 25, 2024. Consequently, the application was decided based solely on the material available on record.
