Legal Reference Library

In CIT v. M/S Rama Educational Society, the division bench of the Allahabad High Court held that benefit of section 80G of the Income Tax Act cannot be granted to assessee merely on ground that it satisfies all the conditions prescribed under section 10(23)(c) of the Income Tax Act. While quashing the ITAT order, the bench confirmed the order of the CIT denying exemption to the assessee for want of regular maintenance of Books of Accounts. Respondent-assessee, a society running a Dental College and Research Centre had availed exemption under s. 80 G of the IT Act. On expiry of the exemption, they made an application for renewal of the same. However, the Commissioner rejected the application on grounds that the department recovered and seized unaccounted cash amount belongs to the assessee during a search and the assessee was not properly maintaining its books of accounts. He was of the opinion that the exemption is not available to the assessee as they does not satisfies condition (iv)...

In Gyaan Vikas Foundation v. CIT (Exemptions), the division bench of the ITAT, Kolkata held that registration under section 12A of the Income Tax Act cannot be denied to a Trust merely on ground it collects fee from the students. Assessee-Trust conducted vocational training in garment making and designing. The CIT refused to grant registration under section 12A to the assessee by finding that they had received fees from the students undergoing course in garment making and designing. The bench noticed the decision in India Trade Promotion Organisation vs DGIT (Exemption) and Others wherein the Hon’ble Delhi High Court held that merely because fee or some other consideration is collected or received by an institution, it would not loose its character of having been established for charitable purpose. Granting relief to the assessee, the bench held that the CIT(E) went wrong in concluding that the assessee trust is not genuine and does not exist for charitable purpose for the sole...

The Supreme Court in Pratibha Pratisthan vs. Manager, Canara Bank held that on a plain and simple reading of all the provisions of the Consumer Protection Act, 1986 it is clear that a Trust is not a person and therefore not a consumer. Consequently, it cannot be a complainant and cannot file a consumer dispute under the provisions of the Act.

CIVIL APPEAL NO. 12 OF 2016 Sri Aurobindo Ashram Trust and Ors. Versus R. Ramanathan and Ors Trustees of a trust are entitled to a wide discretion in administration of trust. A disagreement with exercise of discretion by trustees, however passionate said disagreement might be, does not necessarily lead to a conclusion of maladministration in relation to trust, unless the exercise of discretion is perverse.

1.  CIT v. Surat Art Silk Cloth Manufacturers' Assn., (1980) 121 ITR - Supreme Court - defined of "charitable purpose" & "activity for profit" 2. Dharmadeepti v. CIT [(1978) 3 SCC 499 : 1978 SCC (Tax) 193 3. Privy Council in the Tribune case [AIR 1939 PC 208 : In Re the Trustees of the Tribune, (1939) 7 ITR 415 4. Sole Trustee, Loka Shikshana Trust case [(1976) 1 SCC 254 : 1976 SCC (Tax) 14 : (1975) 101 ITR 234] 5. Indian Chamber of Commerce case [(1976) 1 SCC 324 : 1976 SCC (Tax) 41 : (1975) 101 ITR 796] 6. Aditanar Educational Institution v. Additional Commissioner of Income Tax, (1997) 224 ITR 310 7. American Hotel & Lodging Assn. Educational Institute v. CBDT, (2008) 301 ITR 86 8. Oxford University Press [(2001) 3 SCC 359 : (2001) 247 ITR 658] 9.  Municipal Corpn. of Delhi v. Children Book Trust and Safdarjung Enclave Educational Society, (1992) 3 SCC 390 10. S.RM.M.CT.M. Tiruppani Trust v. Commissioner of...