Commissioner of Income-tax v. Gautam Budh Trust
[Citation -2017-LL-0801-5]

Citation 2017-LL-0801-5
Appellant Name Commissioner of Income-tax
Respondent Name Gautam Budh Trust
Court HIGH COURT OF ALLAHABAD
Relevant Act Income-tax
Date of Order 01/08/2017
Judgment View Judgment
Keyword Tags charitable activities • charitable purpose • charitable nature • registered deed • grant of registration
Bot Summary: The Tribunal by the said order has held that the objects of the Trust are of religious and charitable nature and that its activities are genuine and therefore, it qualifies for registration u/s 12AA of the Income Tax Act. In view of the said finding, the matter with regard to grant of exemption u/s 80G of the Act on the donations received by the Trust was remitted to the CIT for readjudication. Whether the ITAT was correct in interpreting section 12- A/12-AA. All the three questions are interdependent and virtually are to the effect whether the ITAT is justified in holding that the Trust is for religious and charitable purpose and that its activities are genuine so as to extend the benefit of Section 12AA of the Act to it. The Tribunal from the objects of the Trust contained in its registered deed dated 12.08.2010 came to the conclusion that the Trust is for religious and charitable purpose. The activity of school undertaken by the Trust is also of charitable nature. The Tribunal has rightly held that the activities of the Trust are genuine as the list of donors and their names and addresses were supplied by the Trust before the CIT. It is important to point out here that for the purposes of Section 12AA of the Act only, the objects of the Trust and the genuineness of its activities are relevant considerations. The objects of the Trust were found to be religious and charitable in nature and the activities i.e. constructing a school was also held to be genuine and in consonance with the objects of the Trust.


Court No. - 3 Case :- INCOME TAX APPEAL No. - 232 of 2012 Appellant :- Commissioner Of Income Tax Respondent :- Gautam Budh Trust Counsel for Appellant :- Dhananjay Awasthi, S.C.,Manish Goyal,S.S.C. I.T. Counsel for Respondent :- Vineet Garg,D.K. Mishra Hon'ble Pankaj Mithal,J. Hon'ble Umesh Chandra Tripathi,J. Heard Sri Manish Goel, learned counsel for appellant. appeal arises out of order of Income Tax Appellate Tribunal (ITAT) dated 26.08.2011. Tribunal by said order has held that objects of Trust are of religious and charitable nature and that its activities are genuine and therefore, it qualifies for registration u/s 12AA of Income Tax Act (hereinafter referred to as 'the Act'). In view of said finding, matter with regard to grant of exemption u/s 80G of Act on donations received by Trust was remitted to CIT for readjudication. At time of admission, following three questions of law were framed by Court :- "(1) Whether on facts and circumstances of case, Hon'ble ITAT is justified in law in allowing appeal of assessee by holding that failure to prove genuineness of donation or loan can not lead to inference that activities of assessee are not genuine where genuineness of activities of trust could not be examined for want of furnishing of required details by assessee? (2) Whether on facts and circumstances of case, Hon'ble ITAT is justified in law in allowing appeal of assessee by holding that objects are religious or charitable in nature where no details of charitable activities had been filed by assessee as per provisions of Section 2 (15) of Income Tax Act, 1961. (3) Whether ITAT was correct in interpreting section 12- A/12-AA." All three questions are interdependent and virtually are to effect whether ITAT is justified in holding that Trust is for religious and charitable purpose and that its activities are genuine so as to extend benefit of Section 12AA of Act to it. aforesaid questions or issue arising in this appeal is not really substantial question of law, rather is question of fact which has been decided by Tribunal on basis of material brought on record. Tribunal from objects of Trust contained in its registered deed dated 12.08.2010 came to conclusion that Trust is for religious and charitable purpose. activity of school undertaken by Trust is also of charitable nature. No other activity was pointed out by CIT which could be held to be against objects of Trust or to be not bona fide or genuine. Tribunal has rightly held that activities of Trust are genuine as list of donors and their names and addresses were supplied by Trust before CIT. It is important to point out here that for purposes of Section 12AA of Act only, objects of Trust and genuineness of its activities are relevant considerations. objects of Trust were found to be religious and charitable in nature and activities i.e. constructing school was also held to be genuine and in consonance with objects of Trust. In view of aforesaid findings of fact returned by Tribunal, we do not find that any question of law is actually involved to be answered in this appeal. appeal stands concluded by finding of fact and is therefore dismissed. Order Date :- 1.8.2017 I. Batabyal Commissioner of Income-tax v. Gautam Budh Trust
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