Jayshree Gopallalji Haveli Charitable Trust Ujalvav Vs CIT (Exemption) (ITAT Ahmedabad)
Mere presence of religiously worded objects does not automatically render a trust religious- 80G Rejection Remanded – ITAT Ahmedabad Directs CIT(E) to Verify 5% Religious Expenditure Limit
Assessee-trust’s application for approval u/s 80G(5) was rejected by CIT(E), holding that the trust’s objects were partly religious, as its deed mentioned construction of “Shri Gopallalji Haveli” & performance of rituals per the Pushtimargiya Vaishnav sect. Relying on Upper Ganges Sugar Mills (SC), CIT(E) held that a trust with even one religious object falls outside 80G’s scope.
Assessee contended that:
- It already held 12A registration, confirming charitable nature of objects.
- No religious expenditure was incurred, & any such future spend would be within the 5% limit under Section 80G(5B).
- CIT(E) erred in rejecting approval without verifying actual expenditure or giving opportunity of hearing.
Tribunal observed that mere presence of religiously worded objects does not automatically render a trust religious, especially when activities are charitable & expenses on religious purposes are within the 5% tolerance. ITAT cited consistent precedents—Shree Smasta Gurjar Kshatriya Kadiya Samaj Navsari [2025] 174 taxmann.com 1117, Prayatna Charitable Trust [2025] 178 taxmann.com 434, & Shree Vardhman Samaj Utkarsh Fund [2025] 178 taxmann.com 595—holding that 80G cannot be denied without verifying breach of the 5% cap.
