ITAT Holds Section 80G Registration Cannot Be Denied for Incidental Religious Activities
The ITAT Delhi allowed a Charitable Trust’s appeal, holding that 80G registration cannot be denied merely due to incidental religious clauses. Since its main objectives were charitable and not wholly religious, approval under Section 80G was directed.
Shri Baba Balakpuri Ji Charitable Trust has filed an appeal before the ITAT Delhi, challenging orders all dated the same, i.e., September 12, 2025, passed by the Commissioner of Income Tax (Exemptions), Chandigarh. The impugned order had denied the assessee’s registration under Section 80G of the Income Tax Act. The case pertains to the assessment year 2023-24.
The key issue raised was whether the trust (assessee) was eligible for 80G approval. The tax department argued that one of the clauses [clause 5(h)] in the trust’s deed mentioned religious activities, including running a temple, dharamshala, satsang bhawan, gaushala, bhandara, religious discourses, etc. This indicates the assessee is a religious trust and hence is not eligible for Section 80G registration under Explanation 3. To support this claim, the department also cited an earlier judgement of the Supreme Court titled Upper Ganges Sugar Mill Limited vs. CIT.
When the tribunal analysed the disputed trust’s deed and financial records, it noted that the trust had included relief to the poor, education, medical relief, yoga, and preservation of the environment and monuments as its key objectives. The tribunal further noted that the flagged religious clause was not the main objective of the trust. The tribunal further highlighted that the trust works for providing benefits/relief to all sections of society without any discrimination, regardless of their caste, religion, race, or gender.
In conclusion, the tribunal held that Section 80G registration cannot be denied unless the activities of the trust are completely religious-based. Considering the aforesaid findings, the ITAT directed the CIT(E) to grant assessee registration under Section 80G. The trust’s appeal was allowed. The Tribunal referred to a similar decision in Shreeji Education and Charitable Trust ITA No. 107/RJT/2025, where it was held that unless the activities are wholly or mainly religious, registration under Section 80G cannot be denied.
The ITAT concluded that the trust’s activities were not wholly or substantially religious in nature. Therefore, it directed the CIT(E) to grant registration under Section 80G. The appeal of the trust was allowed.
Citation: Shri Baba Balakpuri Ji Charitable Trust Vs ITO Exemption (ITAT Delhi); ITA No. 5833/DEL/2025; 18/02/2026; 2023-24
