| Case ID |
d640a654-d5e1-46be-be5c-430cda3c4ef6 |
| Body |
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| Case Number |
CIVIL APPEAL Nos. 4305 AND 4306 OF 2002 |
| Decision Date |
Mar 04, 2008 |
| Hearing Date |
|
| Decision |
The Supreme Court of India ruled on the appeals filed by the revenue against the decision of the Income-tax Appellate Tribunal regarding the registration of a charitable trust under section 12A of the Income-tax Act, 1961. The Tribunal had previously allowed the respondent-assessee's claim for exemption under section 10(23) based on the assertion that the objects of the trust were exclusively charitable. The High Court had dismissed the revenue's appeals, citing the precedent set in Hiralal Bhagwati v. CIT, which concluded that registration under section 12A does not preclude further inquiry into the trust's objects. The Supreme Court found that the revenue failed to challenge the correctness of the prior decision and thus upheld the High Court's ruling, dismissing the appeals without costs. |
| Summary |
This case revolves around the interpretation of section 12A of the Income-tax Act, 1961, concerning the registration of charitable trusts and the implications of such registration on tax exemption claims. The Supreme Court of India addressed the appeals filed by the Assistant Commissioner of Income tax against Surat City Gymkhana, which had claimed tax exemption for the assessment years 1991-92 and 1992-93. The key issue was whether the registration under section 12A acts as a barrier to further investigations into the trust's charitable objectives. The court relied heavily on the precedent set by Hiralal Bhagwati v. CIT, reaffirming that registration does not negate the need for scrutiny regarding the actual charitable nature of the trust's activities. This case is significant for tax professionals and trusts seeking registration under the Income-tax Act, as it clarifies the relationship between registration and tax exemption, emphasizing the necessity for maintaining genuine charitable purposes. |
| Court |
Supreme Court of India
|
| Entities Involved |
Assistant Commissioner of Income tax,
Surat City Gymkhana
|
| Judges |
Ashok Bhan,
Dalveer Bhandari
|
| Lawyers |
S. Wasim Quadri,
Jubair Ahmed Khan,
Vikram Gulati,
B.V. Balaram Das,
H.A. Raichura
|
| Petitioners |
Assistant Commissioner of Income tax
|
| Respondents |
Surat City Gymkhana
|
| Citations |
2008 SLD 3885 = (2008) 300 ITR 214
|
| Other Citations |
Hiralal Bhagwati v. CIT [2000] 246 ITR 188 (Guj.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
12A,
10(23),
2(15)
|