Trust Registration Focuses on Objects, Not Income Use: Rajasthan HC

CIT Vs Shyam Mandir Committee Khatushyam Ji (Rajasthan High Court) Rajasthan High Court has dismissed a series of appeals filed by the Commissioner of Income Tax (CIT) against Shyam Mandir Committee, Khatushyam Ji. The High Court’s decision affirms the Income Tax Appellate Tribunal’s (ITAT) ruling to grant registration to the trust under Section 12A of the Income Tax Act, 1961. This judgment underscores a crucial legal principle: at the initial stage of granting registration to a trust, the primary focus of tax authorities should be on the genuineness of its activities and objects,...