Case Law Details
Case Name : CIT Vs Varanasi Welfare Trust (Allahabad High Court)
Related Assessment Year :
Courts :
All High Courts Allahabad High Court
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CA Prarthana Jalan
Hon’ble Allahabad HC has in the case of Commissioner Of Income Tax Varanasi v/s Varanasi Welfare Trust in ITA No 227 of 2014 has held that While granting Registration U/S 12A Commissioner of Income Tax is not required to look into the activities of the trust. The Hon’ble High Court has observed as under:-
A Division Bench of this Court, in the judgment in Hardayal Charitable & Educational Trust Vs. Commissioner of Income Tax-II, Agra-Income Tax Appeal No.75/A/2014 and 76/A/2014, has construed the provisions of Section 12AA of the Act, after having du...
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Author Bio
This decision will help a lot of trusts whose registration were denied because they have not carried out any charitable activity as mentioned in the Trust Deed. While the Trusts are in the initial stage how can one expect to fulfill the objects immediately. They approach the CIT for grant of exemption under section 12A and deduction under section 80G for the donors on the strength of the objects of the Trust. They should be given some time to collect donations and carry out the charitable activities. Trusts are are subject to audit and as they are having PAN they have to file returns and if anything is found wrong the Department can cancel the registration granted at any time even with retrospective effect, I believe. Let us hope that in future registration will not be denied at the initial stage itself.