IN THE INCOME TAX APPELLATE TRIBUNAL, RAJKOT BENCH, RAJKOT BEFORE DR. ARJUN LAL SAINI, ACCOUNTANT MEMBER &

SHRI DINESH MOHAN SINHA, JUDICIAL MEMBER आयकरअपीलसं./ITA No.123/RJT/2025 ((cid:467)नधा(cid:91)रणवष (cid:91) / Assessment Year: (2025-26)

Shri Kaka Vallabhji Gruhvallabhya Trust Vs. CIT(Exemption), Shree Chandragopalji Govedhaneshji Room No.609, 6^th Floor, Aayakar Maharaj, Vekurdi Plot, Bhavan, Nr. Sachin Tower, 100ft Porbandar - 360575 Road, Anandnagar-Prahladnagar Road, Ahmedabad-380015 èथायीलेखासं./जीआइआरस.ं /PAN/GIR No.: AAHTS6624H (Appellant) (Respondent)

Appellant by : Shri Viral Vajani, Ld. AR Respondent by : Shri Sanjay Punglia, Ld. CIT(DR)

Date of Hearing : 24/07/2025 Date of Pronouncement : 16/10/2025 आदेश / O R D E R PER DINESH MOHAN SINHA, JM:

This appeal is filed by the Assessee as against the Rejection order dated

28.12.2024 passed by the Commissioner of Income Tax (Exemption), Ahmedabad denying Registration under section 80G(5)(iii) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’).

2. Grounds of appeal raised by the assessee, are as followed:

1) The Commissioner of Income Tax (Exemption) has erred on facts and in law in rejecting application for registration u/s. 80G(iii) of income tax act, 1961.

2) The Commissioner of Income Tax(Exemption) has erred on facts and in law in cancelling registration u/s. 80G(5) of income tax act, 1961.

3. Brief facts of the case that the assessee is public charitable trust. The appellant is carrying out various charitable activities like food distribution, Relief to Poors etc. The appellant is assessed to tax with Income Tax Officer (Exemption), Ward 2, Rajkot. The appellant is registered u/s.12AB(1)(b) of Income Tax Act, 1961 with registration No. AAHTS6624HE20210 dated 30/09/2021. The appellant had filed application for provisional registration u/s.80G(5)(iv) of the Income Tax Act, 1961 on 08/08/2023. Application was accepted and provisional registration was granted to the appellant by the Principal Commissioner of Income Tax / Commissioner of Income Tax in Form No.10AC from AY 2024-25 to AY 2026-27 vide order dated 15/08/2023. Thereafter, the appellant had filed application for final registration u/s.80G(5)(iii) of the Income Tax Act, 1961 on 27/06/2024. Questionnaire cum notice was issued by The Commissioner of Income Tax (Exemption), Ahmedabad on 18/09/2024 and asked the appellant to submit required details on or before 03/10/2024. Appellant has submitted detailed reply on 04/10/2024. Then after, The Commissioner of Income Tax (Exemption), Ahmedabad has issued show cause notice proposing to reject application and cancel registration on 10/12/2024 and fixed hearing on 13/12/2024. The Commissioner of Income Tax (Exemption), Ahmedabad alleged that the trust is carrying religious activity. Relevant Para of Show cause notice is reproduced as under.

"On perusal of such details, your attention is drawn towards the objects stipulated in the instrument of creation of trust, wherein it is observed that the object number 5(1) and 5(3) in the trust deed/instrument of creation of company/trust is/are religious in nature and not purely charitable in nature as per Section 80G(5) of the Income-tax Act, 1961. Therefore, please explain that as to how there is no violation of the main condition of Section 80G(5) of the Act and clause(ii) of section 80G(5) of the Act. Also, you are requested to furnish complete details of religious expenditure made towards such objects of Trust in past 3 years.

In this regard, you are requested to show cause as to why your application filed in Form 10AB under 80G(5)(iii) of the Act should not be rejected and your provisional approval shall not be rejected for the reason(s) discussed above."

Thereafter, the appellant had submitted detailed reply on 13/12/2024.

4. That the Ld.PCIT has observed that for the purpose of section 80G(5) of Income Tax Act, 1961, the objects can be only of charitable nature and even not a single object can be religious in nature a