Case Law Details
Vishranti Gruh Vs Commissioner of Income Tax Officer (ITAT Pune)
Introduction: The Income Tax Appellate Tribunal (ITAT) in Pune recently passed a crucial ruling in the case of Vishranti Gruh Vs. Commissioner of Income Tax Officer. The case revolved around the cancellation of the Trust’s registration under section 12AB of the Income Tax Act due to failure to furnish evidence of genuine activities. The Tribunal decided in favor of re-adjudication.
The Appellant’s Grievance: Vishranti Gruh, the appellant in this case, had its provisional registration under section 12AB cancelled by the Commissioner of Income Tax (Exemption), Pune. The bone of contention was that the Trust failed to produce satisfactory evidence to prove the genuineness of its activities, thereby losing its regular registration status.
The Notice Remained Unattended: The Commissioner of Income Tax (Exemption) had asked the Trust to furnish specific information by a set deadline, failure upon which led to the cancellation of its provisional and regular registration. This aspect of the case emphasizes the importance of adhering to the deadlines set by authorities.
Interpretation of Law and Directive Principles: The Tribunal noted that the objective behind provisions like section 12AB and recognition under section 80G is to facilitate the flow of benefits to society through charitable trusts. These provisions stem from the Directive Principles of State Policy in the Constitution of India, aiming to foster socio-economic welfare.
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