Trust - Page 10

Trust evading Tax due to casual approach of Income Tax Department : CAG

ITD granted registrations/approvals/notifications to the 799 Trusts without verifying necessary documents such as copy of the Trust Deed, proper clauses in the Trust Deed, audited accounts etc. ITD granted registrations/approvals/notifications to 73 Trusts having no PAN which is in contravention of the provisions of Act....

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Imparting of yoga training by Baba Ramdev Trust is charitable educational object

Divya Yog Mandir Trust Vs. JCIT (ITAT Delhi)

Imparting of yoga training through well structured yoga shivirs/ camps also falls under the category of imparting education, one of the charitable objects defined under section 2(15) of the Act. ...

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Selling some product at a profit ipso facto hit proviso to section 2(15)

Sabarmati Ashram Gaushala Trust Vs ADIT (Exemption) (ITAT Ahmedabad)

The objective of the proviso to section 2(15) is to deny exemption to such assessee who are engaged in business activities in the garb of charitable purpose. Mere selling some product at a profit will not ipso facto hit the assessee by applying the proviso to section 2(15) and deny the exemption available u/s 11. ...

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Assessment of Charitable Trusts and Institutions – A Ready Referencer

Many Non Governmental Organizations spread across the world are supplementing the efforts of the governments in promoting social welfare and economic development. Tax administrations have also recognized the voluntary efforts of these NGOs and provided tax incentives to those engaged in charitable activities. The present booklet under ‘...

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Section 10(23C) cannot be interpreted regressively to deny exemptions

Tolani Education Society Vs Deputy Director of Income-tax (Exemptions) - I(2), Mumbai (Bombay High Court)

In the present case, the sole and dominant nature of the activity is education and the Petitioner exists solely for the purposes of imparting education. An incidental surplus which is generated, and which has resulted in additions to the fixed assets is utilized as the balance-sheet would indicate towards upgrading the facilities of the c...

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Anonymous donations not to be taxed in case of wholly religious trusts

Shri Girraj Educational and Welfare Society Vs Income-tax Officer 3(4) (ITAT Agra)

With a view to prevent channelisation of unaccounted money to these institutions by way of anonymous donations, a new section 115BBC has been inserted to provide that any income of a wholly charitable trust or institution by way of any anonymous donation shall be included in its total income and taxed at the rate of 30 per cent. ...

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Trust not entitled to exemption if carrying only incidental objects which are not charitable

M. Visvesvaraya Industrial Research & Development Centre Vs Commissioner of Income-tax (Bombay High Court)

An assessee that engages itself only or predominantly in activities relating to its ancillary or incidental objects which do not relate to any charitable purpose and does not carry on any activity relating to its main object which pertains to a charitable purpose is not entitled to an exemption under Section 11. A view to the contrary wou...

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Exemption to Charitable institution cannot be denied on the basis of a hypothetical assumption of an event that will happen in future

Additional Commissioner of Income-tax Vs N.L. Education Society (ITAT Agra)

The whole case revolves upon the lease deed dated 24.12.2004 executed between the lessor, Smt. Sudha Saraswat and the assessee-society through which the land measuring 5150.48 sq. meter was let out to assessee society for 30 years. Copy of the lease deed is appended with the assessment order. The assessee paid Rs. 10,000/- as premium and ...

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Providing sports facilities to general public without restriction to any caste, creed, religion or profession eligible for exemption U/S. 11

Director of Income-tax (Exemption) Vs Goregaon Sports Club (Bombay High Court)

This Court had the occasion to consider similar issues in a Judgment delivered in the case of DIT (Exemption) v. Chembur Gymkhana [Income Tax Appeal No. 5568 of 2010, dated 13-2-2012]. This Court, following the law laid down by the Supreme Court, has held that the fact that the membership of the club is open to a section of the community ...

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No need to Pay Cess – SC Order for Trust in Maharashtra

State of Maharashtra & Ors Vs. The Salvation Army, Western India Territory (Supreme Court of India)

According to a Supreme Court order as given below, there is no need for the Charitable & Religious Trusts Registered in Maharashtra to pay the 2% Annual Cess / Levy / Fees Tax Contribution to the Charity Commissioner's Office, of their total income, which is used to run the Charity Commissioner's office....

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