Topic
The Delhi ITAT ruled that a charitable trust’s failure to register its deed does not invalidate its claim to Section 12A tax exemption. This clarifies that registration is not a statutory prerequisite, benefiting existing and prospective charitable trusts seeking exemption.
Bombay High Court upholds rejection of trust registration for using 'NGO - Management Trust' as it violates the Emblems and Names (Prevention of Improper Use) Act, 1950. The ruling clarifies that trust names must strictly comply with statutory restrictions, even if objects are charitable.
ITAT Rajkot ruled that denying Section 12AB registration based on a single compliance opportunity breaches natural justice, especially for trusts unfamiliar with digital procedures. The decision mandates adequate opportunity for trusts to rectify deficiencies, impacting all Section 12AB registration applicants.
ITAT Ahmedabad rules that denying registration under Sections 12AB and 80G of the Income Tax Act without providing adequate opportunity for compliance breaches natural justice principles. The tribunal emphasized that procedural fairness requires more than a single hearing notice before rejecting trust registrations.
ITAT Bangalore rules that a charitable trust’s exemption under Section 11 cannot be denied solely due to a lost trust deed. The tribunal permits reinstatement of registration through a sworn affidavit and condonation of delay, ensuring trusts are not penalized for procedural lapses beyond their control.
The ITAT Bangalore ruled that a trust’s failure to respond to a show-cause notice due to verifiable audit and accounting pressures constitutes a legitimate excuse, entitling it to a fresh hearing. This reinforces natural justice in tax exemptions for religious trusts, ensuring procedural fairness over technical non-compliance.
ITAT Amritsar rules that registration under Section 12A(1)(ac)(iii) of the Income Tax Act cannot be denied solely for missing clauses in the Memorandum of Association if the society's activities are genuine and it undertakes to incorporate the required clauses. This decision clarifies procedural compliance requirements for tax exemptions, impacting religious and charitable societies seeking registration.
ITAT clarifies that trusts claiming charitable status under Section 2(15) must prove nominal fees via comparative rate charts and demonstrate genuine public benefit, not just loss-making operations.