2018 (2) TMI 1770 - HC - Income Tax

Tribunal upholds assessee's relief under Section 80G, dismissing Commissioner's doubts. Decision favors trust's charitable activities.

Commissioner Of Income Tax, Ghaziabad Versus Babbar Charitable Trust

Commissioner Of Income Tax, Ghaziabad Versus Babbar Charitable Trust - TMI Issues:1. Interpretation of Section 80G of the Income Tax Act regarding the grant of relief to the assessee.2. Examination of the genuineness of charitable activities by the Commissioner.3. Justification of granting benefit under Section 80G when the trust's existence at the given address is in question.Analysis:1. The appeal under Section 260-A of the Income Tax Act was filed against the order of the Income Tax Appellate Tribunal regarding the grant of relief to the assessee under Section 80G of the Act. The questions of law revolved around the genuineness of charitable activities and the satisfaction of the CIT regarding the same. The Tribunal found that the trust was registered under Section 12A and had been carrying out charitable activities, thus satisfying the conditions for approval under Section 80G.2. The Commissioner rejected the application for approval under Section 80G citing lack of proof of activities by the assessee. However, the Tribunal noted that the trust had been registered under Section 12A, and the accounts reflected charitable activities. The Tribunal emphasized that the Commissioner did not specify the details required for proving genuineness, while the assessee had satisfied the conditions for charitable status under Section 12A. The Tribunal found the Commissioner's rejection unjustified.3. The Tribunal's decision was based on the assessee's provision of details showing charitable activities for three years, coupled with the continuous registration under Section 12A. The Tribunal concluded that the Commissioner's order was not justified, leading to upholding the decision in favor of the assessee and against the department. The judgment dismissed the writ petition accordingly, affirming the Tribunal's findings.This detailed analysis of the judgment highlights the key legal issues, interpretation of relevant sections of the Income Tax Act, and the Tribunal's reasoning in determining the validity of granting relief under Section 80G to the assessee.