Puja Foundation vs. CIT(E)

Parties Involved

Facts Summary

The Puja Foundation, an assessee, filed an appeal against the order dated 28/12/2024 passed by the Commissioner of Income Tax (Exemption), Ahmedabad, denying registration under section 80G(5) of the Income Tax Act, 1961 on the ground that the activities of the Trust are not purely for charitable purpose but also for religious activities. The assessee Trust was created on 25-07-2016 for the purpose of Education, Medical Aid to the needy people irrespective of Caste, Creed and Religion. The assessee filed provisional registration under sections 12AB and 80G which were granted by the Ld. CIT(E) vide separate orders dated 27-05-2021. The assessee filed an application for final registration under section 80G(5) of the Act. The CIT issued a detailed notice asking for various details and activities carried out by the assessee Trust. The assessee Trust filed all the required details including the questions relating to religious activities and explained that no expenditure was incurred by the assessee Trust towards religious activities and furnished Audit Report for the Financial Years 2021-22, 2022-23 and 2023-24.…

Legal Issues

• 1. Whether the order passed by CIT (Exemption) is bad in law and required to be quashed.
• 2. Whether Ld. CIT (Exemption) erred in rejecting application for registration u/s 80G(5) of the Act by observing that trust is charitable cum religious trust and thus violated provision of section 80G(5)(ii) & 80G(5B) of the Act.
• 3. Whether Ld. CIT (Exemption) ought to have considered the fact and activities of the trust and ought to have granted registration.
• 4. Whether the case should be set aside with direction to verify activities of the trust and grant registration.

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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