Jito Gandhidham Chapter Vs CIT (Exemption) (ITAT Rajkot)
The appeals concern two orders passed by the Commissioner of Income-tax (Exemption), Ahmedabad, dated 22 November 2024 and 25 November 2024. The CIT(E) rejected the assessee-trust’s applications for registration under section 12A(1)(ac)(iii) and approval under section 80G(5)(iii) of the Income Tax Act. The CIT(E) held that the trust’s objects were confined to a particular caste or community, namely the Jain community, and that the trust was therefore not a purely charitable institution. The CIT(E) also cancelled the provisional approval earlier granted under section 80G.
In the first appeal, ITA No. 89/RJT/2025, the assessee-trust challenged the rejection of its registration application under section 12A(1)(ac)(iii). The trust had filed Form 10AB along with supporting documents. During examination, the CIT(E) observed from the Memorandum of Association that certain objects appeared to be directed toward the Jain community rather than the general public. A notice was issued on 25 July 2024 seeking further details, followed by a show-cause notice dated 9 October 2024, asking the trust to explain why these objects should not be treated as community-specific. The trust was also asked to furnish evidence showing that no expenditure had been incurred for the benefit of any particular caste or community.
