Charitable Institutions

Charitable institutions are considered as an important area of Indian Income Tax Act, 1961. It is running for the benefit of society, never to have focused on individual development. The government of India provides several tax rebates for charitable institutions running for the sake of charity. Section 11 of the Income Tax Act provides the benefits to the charitable institutions with respect to certain conditions. Moreover these institutions are liable to pay returns when the gross total income is more than the exemptions. The returns are filed using ITR 5 form.

Trust cannot be Barred from getting the benefit of Income Tax Deduction because of not Opting for it Previously: ITAT Diamond Cares vs Commissioner of Income Tax CITATION: 2024 TAXSCAN (ITAT) 256

The Kolkata bench of the Income Tax Appellate Tribunal ( ITAT ) has held that the trust cannot be barred from getting the benefit of income tax deduction because it had not opted for it previously.

A two-member bench comprising of Shri Sanjay Garg, Judicial Member & Shri Girish Agrawal, Accountant Member viewed that taking the reasonable construction of the said provision, the assessee is well within the prescribed limitation period to apply for the final approval Under section 80G(5) of the Act.

Deduction of TDS by Donor on Grants does not Disentitle NGO from exemption u/s 11 of Income Tax Act: Delhi HC AROH FOUNDATION vs COMMISSIONER OF INCOME TAX EXEMPTION & ANR CITATION: 2024 TAXSCAN (HC) 452

The Delhi High Court ruled that the deduction of TDS by donor on grants does not disentitle NGO from exemption under Section 11 of the Income Tax Act, 1961.

A Single Bench of Justice Purushaindra Kumar Kaurav observed that “It is thus seen that deduction of TDS by donor would not be the determinative factor for denial of benefits under Sections 11 and 12 of the Income Tax Act.

No Requirement of Commencement of activity for registration if Trusts already engaged in Charitable Activity: ITAT T B Lulla Charitable Foundation vs The CIT Exemption CITATION: 2024 TAXSCAN (ITAT) 257

In a recent case, the Pune bench of the Income Tax Appellate Tribunal ( ITAT ) has held that there is no requirement for commencement of activity for registration if trusts are already engaged in charitable activity.

A two-member bench comprising of Shri Satbeer Singh Godara, Judicial Member and Dr Dipak P Ripote, Accountant Member observed that “However, the CIT(E) has not discussed whether the Assessee fulfills all other conditions mentioned in the section as he rejected it on technical ground. Therefore, in these facts and circumstances, we hold that the Assessee had made the application in form 10AB within the prescribed time limit and hence it is a valid application

Denial of Exemption to unregistered Charitable Institutions: Supreme Court upholds Kerala HC judgment against Academy of Medical Sciences THE ACADEMY OF MEDICAL SCIENCES vs THE COMMISSIONER OF INCOME TAX CITATION: 2024 TAXSCAN (SC) 135

A two judge bench of the Supreme Court dismissed a Special Leave Petition claiming exemption from taxes to unregistered charitable institutions. The court condoned the delay in implementation of the order.

The Kerala High Court had held that that the resident receiver, to whom the assessee paid or credited the lease rent, filed a return belatedly and did not pay any tax on the declared income. In such a scenario, where no tax has been paid on the declared income, the assessee cannot claim exemption from the consequences outlined in Sections 201(1) and 40(a)(ia), even if due to a loss return.The bench comprising Justice B.V. Nagarthna and Augustine George Masih dismissed the Special Leave Petition and condoned the delay in submission.

Pure Charity Performance of Activity without Consideration is not Envisioned u/s 2(15) of Income Tax Act as GPU object: ITAT Media Research Users Council vs Asst. Director of Income Tax CITATION: 2024 TAXSCAN (ITAT) 246

The Mumbai bench of the Income Tax Appellate Tribunal ( ITAT ) observed that Pure Charity Performance of Activity without Consideration is not envisioned under Section 2(15) of the Income Tax Act, 1961, as General Public Utility ( GPU ) object

The two member bench of the tribunal comprising Gangan Goyal ( Accountant member ) and Amit Shukla ( Judicial member ) observed that the concept of pure charity, the performance of an activity without consideration was not envisioned under the Act, however, as long as GPUs object involves activities which also generates profits, it can be granted exemption provided the quantitative limit under second proviso to Section 2(15) of the  Income Tax Act, 1961, for receipts from such profits, was  adhered to.

Failure to Confirm Authenticity of Activities and Compliance with Relevant Laws: ITAT Remands matter to Consider Registration of Trust u/s 12 AA of Income Tax Act Janata Gram Vikas Pratishthan vs CIT (Exemption) CITATION: 2024 TAXSCAN (ITAT) 223

 The Pune bench of the Income Tax Appellate Tribunal (ITAT) remanded the matter for consideration of the registration of the trust under Section 12AA of the Income Tax Act, 1961, due to the failure to confirm the authenticity of activities and compliance with relevant laws.

The two member bench of the tribunal comprising R.S. Syal ( Vice President ) and Partha Sarathi Choudhari ( Judicial member) overturned the decision of the CIT(E) and referred the matter back to their office with the aforementioned directive. The CIT (E) was instructed to re-adjudicate the matter in accordance with the law, adhering to the principles of natural justice. The grounds of appeal of the assessee were allowed for statistical purposes.

Charitable Institution’s Gross Receipts Surpass Threshold Prescribed u/s 2(15) of Income Tax Act; No Registration Cancellation Required: ITAT Meerut Development Authority vs Commissioner Of Income Tax CITATION: 2024 TAXSCAN (ITAT) 122

The Delhi bench of Income Tax Appellate Tribunal ( ITAT ) has ruled that even if the gross receipts of the assessee exceeds the threshold limit prescribed in the proviso under Section 2(15) of the Income Tax  Act, 1961,  still there is no need for cancellation of the registration under Section 12AA(3).

The bench of Anubhav Sharma (Judicial Member) and M. Balaganesh (Accountant Member) stated that for that particular year alone, the assessee’s activities would not to be construed as charitable activities and assessee would be subjected to tax as a normal business assessee. This fact is duly clarified by the CBDT No. 21/2016 dated 27.05.2016. Hence, the bench granted approval to the raised grounds and accepted the assessee’s appeal.

Income earned from carrying out educational activity is eligible for exemption u/S 10 (23C)(vi) of Income Tax Act: ITAT Durgapur Society of Management Science vs Income Tax Officer CITATION: 2024 TAXSCAN (ITAT) 178

The Kolkata bench of the Income Tax Appellate Tribunal ( ITAT ) observed that Income earned from carrying out educational activity was eligible for exemption under Section 10 (23C) (vi) of the Income Tax Act 1961

The two member bench of the tribunal comprising Sanjay Kumar ( Judicial member ) and Dr. Manish Board ( Account member ) concluded that the focus shifted to contesting the revisionary order by the Commissioner of Income Tax ( Exemption ) [ CIT (E) ] under section 263 of the Income Tax Act 1961. The Durgapur Society of Management Science, mainly engaged in educational activities, faced scrutiny as gross receipts for the year totaled Rs. 3,97,86,089, with building rent exceeding 50% at Rs. 2,02,34,592.

Higher Fees Charged by Charitable Institution not a Commercial Act: CESTAT allows Refund to Adani Institute of Medical Sciences Gujarat Adani Institute Of Medical Sciences vs C.C.E. & S.T.-Rajkot CITATION: 2023 TAXSCAN (CESTAT) 795

The Ahmedabad Bench of the Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) has held that higher fees charged by the charitable institution is not a Commercial act and allowed the refund to Gujarat Adani Institute Of Medical Science.

“Merely by charging higher fees an institution cannot be treated as a commercial institute accordingly the reasoning on this count of the Lower Authority is illegal and incorrect”, the bench of Ramesh Nair (Judicial Member) and C. L. Mahar (Technical Member) held.

Registration can’t be denied to Charitable Institution merely because It is solely for benefit of Christian Community: Patna HC

The Patna High Court has held that, Registration can’t be denied to Charitable Institution merely because It is solely for the benefit of Christian Community.

The bench comprising Justices Jyoti Saran and Partha Sarthy observed that in sub-section 3 of Section 12AA of the Income Tax Act, it is only in two circumstances that such power can be exercised by the Principal Commissioner or the Commissioner. Those are (a) if the activities of such trust or institution are not found genuine; or (b) the activities of such trust or institution are not being carried out in accordance with the objects of the trust or institution.

Charitable Institution liable for Tax Audit u/s 44AB for Activities prior to Registration u/s 2(15) of Income Tax Act: ITAT upholds Penalty u/s 271B Vakrangee Foundation 103 vs Assessing Officer CITATION: 2023 TAXSCAN (ITAT) 2422

The Raipur Bench of Income Tax Appellate Tribunal (ITAT) has upheld the penalty under Section 271B of the Income Tax Act holding that the charitable institution would be liable for tax audit under Section 44AB of the Income Tax Act for activities prior to the registration under Section 2(15) of the Income Tax Act.

The two-member Bench of Ravish Sood, (Judicial Member) and Arun Khodpia, (Accountant Member) observed that certain conduct of the assessee in filing of return in form ITR5, showing itself as an AOP/BOI, offering the surplus as taxable income. It was also a fact that the assessee was in position of registration under Section 12AA dated 18/12/2017 when the return for AY 2017-18 was filed on 15-03-2018.

Income Received by Charitable Institution from Training and Consultancy Fee from Corporates not a Commercial Activity: ITAT

The Cuttack bench of the Income Tax Appellate Tribunal (ITAT) has held that the income received by a charitable institution imparting education shall not be charged for receiving training and consultancy fee from corporates as the same cannot be treated as a ‘commercial activity’ for denying tax exemption.

After perusing the relevant provisions, the Tribunal observed that “for an activity to get hit by the above provisions must satisfy two conditions, namely; it must constitute business and secondly that business must not be incidental to the attainment of objects of the institution. In our considered view, both these conditions are not satisfied in the instant case.”

Levying/collecting fees for guarantee from MLIs not profit motive: ITAT allows benefit of section 11 & 12 of Income Tax Act

The Income Tax Appellate Tribunal ( ITAT ), Mumbai bench while allowing benefit of section 11 and 12 of the Income Tax Act, 1961 held that levying/collecting fees for guarantee from Member Lending Institutions ( MLIs ) are not profit motive.

he two-member bench of Rifaur Rahman, ( Accountant member ) and Kuldip Singh, ( Judicial Member )observed that the on the basis of objects of the activities of the assessee trust is a charitable trust.Further  assessee trust is proved to be an enabler in the financial ecosystem to accelerate the inclusive growth by providing guarantee to the small and micro entrepreneurs who are otherwise unable to arrange for collateral security and/or third party guarantee.

Supplying Food to Poor by Trust under Sub-Contracts received from State Govt or Intermediaries not ‘Charitable’ in Nature: Kerala HC

A division bench of the Kerala High Court has held that the sub-contracts received by the assessee-trust from either State Govts or intermediaries to supply food to poor does not amount to any ‘charitable activity’ and therefore, the tax benefits under the provisions of the Income Tax Act, would not be available.

The bench comprising Justices K Vinod Chandran and Ashok Menon noted that the specific case of the assessee is that it implements welfare schemes of other State Governments, with the funds supplied by the State Governments through another Trust, as per a contract awarded for the implementation.

Promoting Cricket is ‘Charitable Activity’ under Section 2(15) and not entitled to relief under Section 11: ITAT

The Ahmedabad Bench of the Income Tax Appellate Tribunal (ITAT) in the case of Gujarat Cricket Assn. v. J.CIT held that the assessee engaged in promoting and developing the game of cricket is engaged in carrying out ‘charitable activity’ within the meaning of Section 2(15) and is not entitled to relief under Section 11.

The bench consisting of Justice P P Bhatt and Pramod Kumar held that the assessee is engaged in carrying out ‘charitable activity’ within the meaning of Section 2(15) and is not entitled to relief under Section 11.

Society imparting Training to Students to get Placements eligible for Income Tax Exemption: ITAT

The Delhi bench of the Income Tax Appellate Tribunal ( ITAT ) has held that a society engaged in providing education/ skill development training to the students to enable them to get placement is eligible for deduction under section 10(23C)(iiiab) of the Income Tax Act.

The Tribunal noted that the assessee society, substantially financed by the Government of India, is engaged only in imparting research based education/ skill training to the students in manufacturing of sports goods and leisure equipments without any profit motive, to enable them to get placement falls within the definition of education u/s 2(15) of the Act, hence entitled for exemption under section 10(23C)(iiiab) of the Act.

Educational Institutions making Profits and Gains cannot Claim IT Exemption u/s 10(23C): Supreme Court M/S NEW NOBLE EDUCATIONAL SOCIETY vs THE CHIEF COMMISSIONER OF INCOME TAX 1 AND ANR CITATION: 2022 TAXSCAN (SC) 184

The Supreme Court of India, in a significant ruling, held that, where the objective of the institution appears to be profit-oriented, such institutions would not be entitled to approval of exemption under the Section 10(23C) of the Income Tax Act,1961, notably only to be applied prospectively, through the Division Bench of Chief Justice of India Uday Umesh Lalit, Justice S. Ravindra Bhat and Justice P S Narasimha.

Application for Registration u/s 12AA of Income Tax Act shall not denied on Absence of Dissolution Clause in Trust Deed: ITAT Roop V.K Jain Foundation vs The CIT CITATION: 2023 TAXSCAN (ITAT) 1817

The Income Tax Appellate Tribunal (ITAT) Delhi Bench held that application for registration under Section 12AA of Income Tax Act ,1961 should not be denied in absence of dissolution clause in trust deed.

The two member bench of B.R.R. Kumar(accountant member)  and Chandra Mohan Garg, (Judicial Member)/ observed  that the CIT(E) has not made any allegations or has not made any adverse comment or conclusion, except omission of dissolution clause in the trust deed, regarding charitable objects of the assessee and the genuineness of its activities.

Recognition u/s 80G of Income Tax Act shall not be granted without completing Registration of Trust: ITAT directs Re-adjudication- Shri Akhil Hind Mahila Parishad vs The Commissioner of Income-Tax CITATION:   2023 TAXSCAN (ITAT) 1830

The Income Tax Appellate Tribunal (ITAT) Surat  Bench directed readjudication for granting recognition under section Income Tax Act and held that without completing registration recognition under Section 80G not granted.

The two member bench of A.L.Saini(account member)  and Pawan Singh, (Judicial Member) has remitted the matter relating to registration under Section 12AB of the Income Tax Act  to the file of the CIT(Exemption), with the direction to grant the registration in accordance with law. Thus, in order to grant recognition under section 80G of the Act, the assessee-trust should be registered under Section   12AB of the Income Tax Act.

ITAT directs readjudication for granting  exemption u/s 10(23C)(iiiab) of Income Tax Act in respect of Imparting Education through Charitable Trust M/s Chandigarh Institute of Hotel Management & Catering Technology vs CIT

The Income Tax Appellate Tribunal (ITAT), Chandigarh bench  directed readjudication for granting exemption under Section 10(23c)(iiiab) of Income Tax Act, 1961 in respect of imparting the education through Charitable trust.

he two member bench of Vikram Singh Yadav, (Accountant Member) and Sanjay Garg, (Judicial Member) that  restored the matter to the file of the  CIT(E) with a direction to decide regarding the claim of the assessee being a charitable Institution involved in the activity of imparting education.

MSME registered for Skill Development not eligible for Income Tax Exemption under Section 12AA of Income Tax Act: ITAT J.K. Council for Social Welfare And Information Technology vs CIT (Exemption) CITATION: 2022 TAXSCAN (ITAT) 1911

The Amritsar Bench of Income Tax Appellate Tribunal (ITAT) presided over by M.L.Meena (Accountant Member) and Anikesh Bnerjee (Judicial Member) upheld the decision of the Commissioner of Income Tax (Appeals).

The tribunal determined that since the applicant does not fall under the interpretation of “Charitable Purposes,” it is not eligible for registration under section 12AA of the Income Tax Act, which is confined only for charitable institutions, or for a tax exemption under that section.

Delhi High Court allows Income Tax Exemption to Charitable Society running Printing Press and uses Profit so generated for Charitable Purposes PRINCIPAL COMMISSIONER OF INCOME TAX vs SERVANTS OF PEOPLE SOCIETY CITATION: 2021 TAXSCAN (HC) 462

The Delhi High Court allowed the Income Tax Exemption to Charitable Society running printing presses and using the profit generated for charitable purposes.

The division bench of Justice Manmohan and Justice Navin Chawla noted that the assessee/society is running a printing press and publishing a newspaper. The profit so generated is used for charitable purposes and apparently, there is no profit motive in the activities of the assessee. As such it cannot be said that the assessee is involved in any trade, commerce, or business. Consequently, the mischief of Proviso to Section 2(15) of the Act is not attractive.

Conditions to grant Registration of Charitable Trust can’t go beyond the Scheme of Law: ITAT Bai Navajbai Tata Zoroastrian Girls School vs Commissioner of Income Tax CITATION: 2022 TAXSCAN (ITAT) 1153

The Mumbai Bench of the Income Tax Appellate Tribunal (ITAT) held that the Income Tax Authorities cannot impose conditions beyond the scheme of law while granting registration to charitable institutions and trusts under Section 12A of the Income Tax Act, 1961.

The Tribunal observed that the conditions concerning the conduct of the trust and the circumstances in which the registration granted to the appellant can be canceled as these are regulated by the specific provisions of law. Further observed that if the scheme of the law does not visualize these conditions being part of the scheme of the registration being granted to the applicant trust, then the Commissioner cannot supplement the law.

Nazareth Hospital Society case: ITAT finds Educational Donation ultra vires to Trust objective, rules non-eligibility for exemption u/s 11(1)(a)

The Income Tax Appellate Tribunal (ITAT) Allahabad has ruled that donations by a charitable trust to educational activities will not be eligible for exemptions under section 11(1)(a) of the Income Tax Act 1961 if such educational activity is not specified under the objective of the charitable trust.

Judicial Member Vijay Pal Rao and Accountant Member Ramit Kochar sided with the revenue and held, “we have observed that the objects of the donor viz. assesses are only permitted to engage in activities to establish and run hospitals, nursing homes, welfare homes, rest houses for the good and benefit of the people, and other objects which are incidental to the attainment of the above main object. The objects as are approved by the assessee nowhere stipulated engaging in educational activities and its act in donating Rs. 72 lacs to a charitable organization namely M/s Roman Catholic Diocese Private Limited who is engaged in educational activities, is an act ultra vires to the object clause of the assessee and also does not fulfill the condition as stipulated u/s 11(1)(a) to apply its income for such purposes in India. Thus, based on detailed discussions above, we hold that the assessee will not be entitled to an exemption of Rs. 72 lacs paid by it as a donation to M/s Roman Catholic Diocese Private Limited, under the provisions of Section 11(1)(a) of the 1961 Act and the appeal filed by assessee fails.”

Exemption allowable u/s 80G to the Charitable Trust: ITAT

The Pune bench of Income Tax Appellate Tribunal (ITAT) presided over by R.S. Syal, Vice President and Accountant Member with Partha Sarathi Chaudhury, Judicial Member held that the assessee-trust is allowed to get exemption under the Section 80G of the Income Tax Act, 1961.

The bench ruled that the department had not provided sufficient evidence to support the trust’s religious nature. If the trust engaged in religious activities, it is not subject to the provisions of section 80G of the Income Tax Act. As a response, the tribunal directed the CIT(E)’s to grant the exemption under Section 80G of the Income Tax Act.

Registration of Trust u/s 12AA is valid when object of the Trust is Charitable in Nature, Exemption u/s 80(G)(S)(vi) allowable: Calcutta HC COMMISSIONER OF INCOME TAX, (EXEMPTION) KOLKATA vs VIJAY KUMAR BAJORIA FOUNDATION CITATION: 2022 TAXSCAN (HC) 952

The Calcutta High Court (HC) has held that registration of trust u/s 12AA  of the Income Tax Act,1961 is valid when the object of the Trust is charitable in nature and allowed the Exemption u/s 80(G)(S)(vi) of the act.

Justice T S Sivagnanam and Justice Hiranmay Bhattacharyya observed that the Tribunal had rightly pointed out that no material was produced by the assessee therein to show that it carried out any charitable activity.

ITAT allows Bar Council of Delhi’s appeal to make it Charitable Trust and allow Exemption

The Income Tax Appellate Tribunal (ITAT) allowed the appeal of the Bar Council of Delhi and directed CIT (E) to register it as a charitable trust under Section 12AA of the Income Tax Act, 1961 and allowed consequent exemption under Section 80G of the Act

The Tribunal consists of an Accountant Member, R.K. Panda, and a Judicial Member, Kuldeep Singh considered view that the appellant being engaged in safeguarding the rights, privileges, and interest of the advocates, its dominating purpose is the advancement of a general public utility within the meaning of section 2(15) of the Act, as such, genuineness of its activities and object of charitable purpose is proved, thus entitled for registration u/s 12AA and consequent exemption under Section 80G.

Relief to Tata Trusts: ITAT quashes Revised Assessment order passed by Tax Department

The Income Tax Appellate Tribunal (ITAT), Mumbai Bench in a major relief to the Tata Trusts quashed the  revised assessment order passed by the tax

The coram consisting of Headed by the President Justice P P Bhatt and Vice President, Pramod Kumar said that the current financial period was over forty years after the cut-off date of June 1, 1973, and in none of those forty-plus years, the exemption was declined on the ground that these shares were not part of the corpus.

PCIT is not empowered to Impose conditions to be Complied with by Assessee, for granting Registration u/s 12AB: ITAT M/s. Lady Tata Memorial Trust vs Commissioner of Income Tax CITATION: 2022 TAXSCAN (ITAT) 1380

The Income Tax Appellate Tribunal (ITAT), Mumbai held that the Principal Commissioner of Income Tax (PCIT) was not empowered to impose conditions to be complied by assessee, for granting registration under Section 12AB of the Income Tax Act,1961.

The Bench consisting of Kuldip Singh, Judicial Member and Om Prakash Kant, Accountant Member relied on the judgment in Bai Hirabai Jamshetji Tata Navsari Charitable Institution vs. CIT(E) and observed that “When we examine the questions raised by the assessees’ according registration under section 12A by the PCIT subject to certain conditions in the light of the provisions contained in the scheme of the Income Tax Act, 1961, registration under section 12A cannot be subjected to any condition as there is an “inbuilt mechanism'' to be complied with by the assessee after getting the registration under section 12AA of the Act. Furthermore, compliance of the conditions by the assessees’ is to be examined by the Assessing Officer (AO) during the assessment proceedings.``

Major Relief to Tata Education and Development Trust for spending in Charitable objectives outside India: ITAT disallows CIT’s demand of over 100 Cr

The Income Tax Appellate Tribunal (ITAT), Mumbai bench on Friday ruled in favor of the Tata Education and Development Trust in their appeal against commissioner income tax (CIT) appeal order wherein demand of more than Rs.220 crore was levied by the tax department.

The Appellate Tribunal bench consisting of the President Justice P P Bhatt and Vice President, Pramod Kumar heard the matter last week and that gave the order today reportedly stating that the very adjudication on denial of exemption, in respect of monies spent on the application of charitable objectives of the appellant trust outside India, by the learned CIT(A) was incorrect in law, and is, accordingly, liable to be set aside for that short reason alone.

Amount given for Admission is not Donation to Charitable Trust: ITAT Confirms Income Tax Addition Society for Computer Technology and Research vs ACIT CITATION: 2023 TAXSCAN (ITAT) 1617

The Income Tax Appellate Tribunal (ITAT) Pune Bench, confirmed the income tax addition of 6 Lakhs given for the admission in college is not donation to charitable trust and thus is taxable.

The Bench composed of R.S. Syal, Vice President, observed that it is clear from the letter of Ms. Suprabha D. Galakatu, who gave specifically complete narration of the circumstances of entering the college, that she did payed a sum of Rs.6.00 lakh to the assessee but that was in lieu of admission of her sister’s son, Mr. Soham Deshmukh and not as donation.

Activities of Donation to Veda Patasalas, Veda Pandits, Medical Assistance etc. are “Charitable” in Nature: ITAT allows Approval u/s 80G Shri Shruthiparampara Gurukulam vs ITO CITATION:   2023 TAXSCAN (ITAT) 358

The Bangalore Bench of Income Tax Appellate Tribunal has allowed approval under Section 80G of the Income Tax Act 1961, holding that the activities of donation to Veda Pathashalas, Veda Pandits, Medical Assistance etc. would be treated as “charitable” in nature.

 N. V. Vasudevan (Vice President) and Chandra Poojari (Accountant Member) quashed the impugned order allowing registration under section 12A of the Act as charitable trust, observing that the activities carried on by the assessee-Trust were Charitable in the nature of education, relief of poor and not Religious.

Assessee entitled to Registration under Section 12A even when activity covered under ‘object of general public utility’: Madras High Court

The Madras High Court held that the assessee is entitled to registration under Section 12A even when activity is covered under “object of general public utility”.

The division bench of Justice M.Duraiswamy and T.V.Tamilselvi held that even if the assessee is engaged in the category of activity of “object of general public utility”, they are entitled for registration under Section 12A. Therefore, the court held that the assessee can claim registration under Section 12A by categorizing the activity of the assessee as “object of general public utility

exemption u/s. 11 of the Act is allowable When Income Tax Return filed within specified Time Limit: ITAT Conference of Religious India vs Ward Exemption 1 (3) CITATION: 2022 TAXSCAN (ITAT) 1753

The Delhi Bench of the Income Tax Appellate Tribunal (ITAT) has held that the exemption under section 11 of the Income Tax Act,1961 is allowable when a Income Tax Return is filed within the specified time limit of section 139 of the act.

The Coram of the ITAT bench consists of Sh. N K Billaiya, accountant member held that the CIT(A) erred in misinterpreting the aforementioned circular and to that extent the order of the CIT(A) is erroneous and deserves to be set aside if the grievance of the assessee is allowed.

Non-Profit Company imparting Education eligible for Income Tax Exemption for Charitable Activities: Calcutta High Court CREATIVE MUSEUM DESIGNERS vs INCOME TAX OFFICER, EXEMPTIONS, WARD-1(1), KOLKATA CITATION: 2022 TAXSCAN (HC) 132

The Calcutta High Court has held that a non-profit organization under section 25 of the Companies Act imparting education is eligible for income tax exemption as the same would be treated as charitable activity for the purpose of the Income Tax Act, 1961.

Allowing the contentions of the assessee, the Court has ruled that when a Company has been established as a non-profit organization under the Companies Act, and its profits are applied solely for the promotion of its objects, its activities would by necessary implication fall under the definition of a “charitable purpose” under the Income Tax Act, 1961.

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