Tag Archives: IN THE ITAT CHANDIGARH BENCH

Registration under Section 12AB cannot be cancelled absent proof of non-genuine activities or statutory violations.

By | September 9, 2026
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Registration under Section 12AB cannot be cancelled absent proof of non-genuine activities or statutory violations. Issue Whether CIT(E) can cancel an educational trust’s Section 12AB registration over bank cash deposits, high surplus ratios, or unrecorded leases without proving non-genuine activities or fund diversion. Facts Registration Granted: The assessee-society, running educational institutions, was granted registration under… Read More »

Reassessment Notice Issued Beyond Three Years Under Section 148 Without Section 151(ii) Approval Lacks Valid Jurisdiction

By | September 3, 2026
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Reassessment Notice Issued Beyond Three Years Under Section 148 Without Section 151(ii) Approval Lacks Valid Jurisdiction Reassessment Notice Issued Beyond Three Years Under Section 148 Without Section 151(ii) Approval Lacks Valid Jurisdiction Issue Whether a consequential reassessment notice issued under Section 148 after the expiry of three years from the end of the relevant assessment… Read More »

Addition for Alleged Understated Export Sales Deleted as Net Realizations and Prior-Year Invoices Fully Reconciled

By | August 29, 2026
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Addition for Alleged Understated Export Sales Deleted as Net Realizations and Prior-Year Invoices Fully Reconciled Addition for Alleged Understated Export Sales Deleted as Net Realizations and Prior-Year Invoices Fully Reconciled Issue Whether the CIT(A) was justified in deleting the addition of ₹4.59 crores made by the Assessing Officer on account of alleged undisclosed or understated… Read More »

By | August 29, 2026
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Interest Disallowance Remanded for Verification While Section 40(a)(ia) and Land Conversion Charge Disallowances are Upheld Issue Whether interest on borrowed capital for work-in-progress requires verification, whether section 40(a)(ia) applies to paid amounts, and whether land conversion charges/interest qualify for business expenditure or capital allowances. Facts Interest on Borrowed Capital: For AYs 2009-10 to 2010-11, the… Read More »

In incidental religious activities, CIT(E) must examine dominant objects and 5% expenditure cap before denying 80G approval.

By | August 21, 2026
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In incidental religious activities, CIT(E) must examine dominant objects and 5% expenditure cap before denying 80G approval.   In incidental religious activities, CIT(E) must examine dominant objects and 5% expenditure cap before denying 80G approval. Issue Whether CIT(E) can deny approval under Section 80G solely because a charitable trust engages in incidental religious activities, without… Read More »

A trust predominantly engaged in cow protection cannot be classified as a religious entity or denied Section 80G approval based on dormant temple clauses or Gita discourses.

By | August 10, 2026
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A trust predominantly engaged in cow protection cannot be classified as a religious entity or denied Section 80G approval based on dormant temple clauses or Gita discourses. Issue Whether a trust with dominant objects of cow protection, animal welfare, and ethical value education can be categorized as a “Religious Entity” under Section 12AB due to… Read More »

Providing transportation services on commercial lines to school students does not constitute charitable purpose under section 2(15).

By | August 10, 2026
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Providing transportation services on commercial lines to school students does not constitute charitable purpose under section 2(15). Issue Whether an institution providing student transport services on commercial lines against a fee, generating recurring surpluses, is entitled to regular registration under Section 12AB as a charitable entity under Section 2(15) of the Income-tax Act, 1961 /… Read More »

RWA activities confined to members follow doctrine of mutuality and lack public charity under Section 12AB.

By | August 5, 2026
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RWA activities confined to members follow doctrine of mutuality and lack public charity under Section 12AB. RWA activities confined to members follow doctrine of mutuality and lack public charity under Section 12AB. Issue Whether a Residents Welfare Association providing maintenance and facility services exclusively to its members operates under the doctrine of mutuality, thereby lacking… Read More »

Rental income applied to charitable objects and reasonable CEO remuneration do not forfeit trust exemption.

By | August 3, 2026
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Rental income applied to charitable objects and reasonable CEO remuneration do not forfeit trust exemption. Issue Rental Income & Commercial Activity: Whether a charitable trust forfeits exemption under Sections 11 and 12 when it earns substantial rental income by leasing trust property, where such leasing is empowered by the trust deed and the receipts are… Read More »

Section 12AB registration cannot be denied on unverified statutory breaches, requiring fresh adjudication.

By | July 24, 2026
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Section 12AB registration cannot be denied on unverified statutory breaches, requiring fresh adjudication. Issue Whether registration under Section 12AB can be denied to a university based on alleged contraventions of non-tax laws (Haryana Private Universities Act and FCRA) and accounting discrepancies without any adverse finding by the competent regulatory authorities. Whether the CIT(E) can declare… Read More »