ITAT Jodhpur Orders Section 80G Approval for Geeta Satsang Ashram Samiti: Religious Expenditure Found Below Statutory Threshold

Case Overview

Case Name: Geeta Satsang Ashram Samiti Vs Ward Exemption (ITAT Jodhpur)
Appeal Number: ITA No. 549/Jodh/2026
Date of Order: 13/08/2026
Assessment Year: 2023-24
Forum: Income Tax Appellate Tribunal, Jodhpur Bench

Background and Core Dispute

Geeta Satsang Ashram Samiti, a registered society engaged in multiple charitable pursuits, approached the Income Tax Appellate Tribunal (ITAT), Jodhpur Bench, challenging the rejection of its application for approval under Section 80G of the Income-tax Act, 1961.

The Commissioner of Income Tax (Exemption) [CIT(E)] had refused the application on two principal grounds:

  1. That the assessee was a religious institution and therefore ineligible for approval under Section 80G(5)
  2. That the expenditure incurred toward religious activities exceeded the 5% ceiling prescribed under Section 80G(5B) — reportedly standing at 54.44%

The assessee disputed both findings, arguing that the CIT(E) had fundamentally mischaracterised the nature of the institution and had relied upon a glaring clerical error in the statutory form rather than on the audited financial statements.

Chronology of Proceedings

The assessee's journey to obtain Section 80G approval has been prolonged:

  • 29.09.2022 — Application for approval under Section 80G originally filed
  • 20.03.2023 — Application rejected by CIT(E) on multiple grounds, including:
    • Non-registration under the Rajasthan Public Trust Act, 1959
    • Classification as a religious trust
    • Expenditure on religious purposes
    • Genuineness of activities not established
  • 07.08.2023 — ITAT Jaipur Bench, in ITA No. 258/JP/2023, set aside the rejection and remanded the matter to CIT(E) for fresh adjudication with a proper opportunity to the assessee
  • 15.12.2025 and 21.01.2026 — Assessee filed detailed written submissions along with supporting documents and audited accounts before CIT(E)
  • Second Rejection — CIT(E) once again rejected the application, maintaining that the objects contained religious elements and that 54.44% of expenditure was of a religious nature
  • 13.08.2026 — ITAT Jodhpur allowed the assessee's appeal and directed grant of Section 80G approval

Nature of the Assessee's Activities and Objects

A critical aspect of the Tribunal's analysis was the full range of the assessee's objects and activities, which the CIT(E) had failed to appreciate in totality. The assessee's constitution provided for:

  • Annakshetra — providing food to indigent persons
  • Free medical camps — organising health camps and distributing medicines
  • Dispensaries — running natural, homoeopathic and ayurvedic dispensaries
  • Libraries and reading rooms — for public use
  • Dissemination of ethical and philosophical teachings from the Bhagavad Gita
  • Moral and spiritual advancement of the general public
  • Service without distinction of class, caste or community

The membership clause of the society did not restrict membership to any particular caste, creed, sect or religious denomination.