Tag Archives: Commissioner of Income-tax

Absence of state trust registration, summary rejection on genuineness, and procedural defects are curable, warranting restoration and fresh adjudication on substantive merits under Section 12AB and Section 80G.

By | September 3, 2026
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Absence of state trust registration, summary rejection on genuineness, and procedural defects are curable, warranting restoration and fresh adjudication on substantive merits under Section 12AB and Section 80G. Issue Whether rejection of registration under Section 12AB and approval under Section 80G on grounds of absence/delay in State Trust registration, summary findings on genuineness without cogent… Read More »

Trust Granted Registration Under Section 12AB Cannot Be Denied Section 80G Approval On Same Objects

By | September 1, 2026
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Trust Granted Registration Under Section 12AB Cannot Be Denied Section 80G Approval On Same Objects Issue Whether approval under Section 80G (Section 133 of the Income-tax Act, 2025) can be denied to a charitable-cum-religious trust that is already registered under Section 12AB (Section 332 of the Income-tax Act, 2025) on the ground of religious objects,… Read More »

CIT(E) cannot reject Section 12AB registration for object modification delay without examining charitable eligibility

By | September 1, 2026
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CIT(E) cannot reject Section 12AB registration for object modification delay without examining charitable eligibility CIT(E) cannot reject Section 12AB registration for object modification delay without examining charitable eligibility Issue Whether the CIT(E) was justified in rejecting an assessee’s registration application under Section 12AB solely due to procedural non-compliance with Section 12A(1)(ac)(v) for modification of objects,… Read More »

CIT(E) cannot reject Section 12AB registration by overstepping into assessment-stage matters or misclassifying charitable activities under the residual proviso.

By | September 1, 2026
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CIT(E) cannot reject Section 12AB registration by overstepping into assessment-stage matters or misclassifying charitable activities under the residual proviso. Issue Whether the CIT(E) exceeded his jurisdiction under Section 12AB of the Income-tax Act by examining activity-wise profitability, commercial receipts, and accounting presentation to reject registration renewal, rather than restricting the scope of inquiry strictly to… Read More »

Upfront Timeshare Membership Fees with Long-Term Service Obligations Cannot Be Taxed Fully in the Initial Year and Must Be Deferred over the Contract Term

By | August 29, 2026
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Upfront Timeshare Membership Fees with Long-Term Service Obligations Cannot Be Taxed Fully in the Initial Year and Must Be Deferred over the Contract Term Issue Whether upfront timeshare membership fees collected by an assessee are fully taxable in the initial year under the mercantile system of accounting, or if 55% of the fee can be… Read More »

Remittances from Non-Resident Relatives into Undisputed NRE Accounts via Banking Channels Cannot Be Taxed as Unexplained Investments

By | August 28, 2026
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Remittances from Non-Resident Relatives into Undisputed NRE Accounts via Banking Channels Cannot Be Taxed as Unexplained Investments Issue Whether additions made under Sections 68 and 69 towards mutual fund investments sourced from overseas remittances by non-resident relatives into an undisputed NRE account via normal banking channels are sustainable in law. Facts Assessment Year: AY 2006-07.… Read More »

Registration and 80G Approval Directed as Eye Camp Activities and Facilities Were Verified Genuine

By | August 28, 2026
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Registration and 80G Approval Directed as Eye Camp Activities and Facilities Were Verified Genuine Issue Whether the rejection of registration under Section 12AB and approval under Section 80G based on procedural accounting deficiencies—despite local verification corroborating genuine charitable activities—was sustainable in law. Facts Nature of Assessee: The assessee-trust is engaged in charitable medical relief activities,… Read More »

Reimbursing doctor travel, operational surpluses, and unadjudicated regulatory issues do not negate a trust’s genuine charitable status under Section 12AB.

By | August 28, 2026
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Reimbursing doctor travel, operational surpluses, and unadjudicated regulatory issues do not negate a trust’s genuine charitable status under Section 12AB. Reimbursing doctor travel, operational surpluses, and unadjudicated regulatory issues do not negate a trust’s genuine charitable status under Section 12AB. Issue Whether a charitable society running a hospital loses its entitlement to registration under Section… Read More »

Lack of formal trust deed cannot justify refusing Section 12AB registration when genuine charitable activities exist

By | August 27, 2026
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Lack of formal trust deed cannot justify refusing Section 12AB registration when genuine charitable activities exist Lack of formal trust deed cannot justify refusing Section 12AB registration when genuine charitable activities exist Issue Whether the absence of a formal trust deed constitutes a valid ground for refusing renewal of registration under Section 12AB and approval… Read More »

No Adverse Action Permissible for Non-Deduction of TDS on Lease Rent Paid to GNOIDA

By | August 22, 2026
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No Adverse Action Permissible for Non-Deduction of TDS on Lease Rent Paid to GNOIDA Issue Whether an assessee can be subjected to adverse action under Section 201 for non-deduction of tax at source (TDS) under Section 194-I of the Income-tax Act, 1961 (Section 393 / Section 398 of the Income-tax Act, 2025) on annual lease… Read More »