Case Law Analysis
|Income Tax Appellate Tribunal
Section 12AB Income Tax Act | Financial Irregularities Under Section 13 Do Not Justify Cancellation of Charitable Trust Registration : ITAT Delhi
The ITAT Delhi has ruled that alleged financial mismanagement under Section 13 of the Income Tax Act cannot be grounds for cancelling a charitable trust’s registration under Section 12AB. Only material deviation from the trust’s stated objects or lack of genuineness in its activities can trigger cancellation, reinforcing that procedural compliance alone does not override substantive purpose in charitable exemptions.