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Case Law Details

Case Name : CIT Vs Gobind Ram Goel Charitable Trust (Calcutta High Court)
Appeal Number : ITA/32/2019
Date of Judgement/Order : 25/06/2024
Related Assessment Year :
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CIT Vs Gobind Ram Goel Charitable Trust (Calcutta High Court)

In a significant ruling, the Calcutta High Court recently upheld the registration of Gobind Ram Goel Charitable Trust under Section 12AA(3) of the Income Tax Act, 1961, dismissing the appeal filed by the Income Tax Department.

The case revolved around the cancellation of the Trust’s registration by the Commissioner of Income Tax (Exemptions) [CIT(E)] under Section 12AA(3). The CIT(E) had issued a show-cause notice citing non-receipt of corpus donations and alleged discrepancies in fund utilization. However, the Trust contended that all donations, including a disputed amount of Rs.1,12,00,000 from SHGPH, were appropriately accounted for under Section 80G exemptions.

During proceedings, it emerged that the disputed donation was initially categorized as corpus but later treated as general, leading to tax implications under Section 245C. The Income Tax Appellate Tribunal (ITAT) upheld the Trust’s appeal, emphasizing the lack of evidence supporting non-genuine activities or misapplication of funds.

The High Court affirmed the ITAT’s decision, noting that the Commissioner failed to establish grounds under Section 12AA(3) justifying cancellation. It highlighted procedural lapses and insufficient evidence against the Trust’s charitable activities. The court’s verdict underscores the importance of substantiating allegations with concrete evidence in cases involving charitable trusts’ tax exemptions.

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