This Digest of case laws is prepared by KSA Legal and AIFTP from judgements reported in BCAJ, CTR, DTR, ITD, ITR, ITR (Trib), Chamber's Journal, SOT, Taxman, TTJ, BCAJ, ACAJ, www.itatonline.org and other journals
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S. 13 : Denial of exemption-Trust or institution-Investment restrictions-Substantial interest-Capital gain-Founder trustee of assessee-trust was holding only 0.83 per cent of aggregate paid-up ordinary share capital of TSL-No violation of provision-Investment in redeemable preferential shares-Entire income of trust shall not become ineligible for exemption, it was to be restricted only to income derived from prohibited investments. [S.11, 12A, 13(1)(d), 13(2)(h), 80G]

ACIT v. Navajibhai Ratan Trust (2022) 213 DTR 25 / 217 TTJ 137 / 140 taxmann.com 157 (Mum)(Trib)

S. 13 : Denial of exemption-Trust or institution-Capitation fees-Voluntary contribution-Denial of exemption is not justified. [S. 11, 12A, 13(1)(c), Karnataka Educational Institutions (Prohibition of capitation Fee) Act, 1984]

Dy. CIT(E) v. Kammavari Sangham (2022) 95 ITR 55 (SN) (Bang.) (Trib)

S. 13 : Denial of exemption-Trust or institution-Investment restrictions-Specified persons-Using premises-Rendering professional services without charging professional fees-Building owned by specified person used by the Trust without rent-Disqualification not attracted-Denial of exemption is not valid. [S. 11, 12A, 13(1)(c)]

Swasthiyog Pratishthan v. Dy. CIT(E) (2022) 97 ITR 47 (SN) (Pune) (Trib)

S. 13 : Denial of exemption-Trust or institution-Investment restrictions-Advance of interest bearing loans to a company in which the trustees are interested who are managing the trust-Collecting the fees over and above prescribed by the BPUT and the Government-Denial of exemption is affirmed.[S. 11, 12A, 13(1)(d), 13(2)(a),13(2)(c), 80G]

Nabadigant Educational Trust v.ITO (2022) 219 TTJ 69 (Cuttack)(Trib)

S. 12AA: Procedure for registration-Trust or institution-Cancellation of Registration-Amendment of objects of Society in 2013-No change in charitable nature of objects-Cancellation of registration not valid. [S. 2(15)]

Zila Paryawarn Sudhar Samiti v. CIT(E) (2022) 96 ITR 149 (Jaipur) (Trib)

S. 12AA: Procedure for registration-Trust or institution-Charitable purpose-Cancellation of registration-Cancellation cannot be with retrospective effect-Ceasing to be charitable institution-Sale of Institution in 2017-Cancellation of registration from the date of ceasing to be charitable is held to be valid. [S. 11, 12A, 12AA(3), 80G (5), 132, 153A]

Jeevan Jyoti Charitable Trust v. PCIT (2022)97 ITR 617/217 DTR 273 /219 TTJ 369 (TM) (All) (Trib)

S. 12AA : Procedure for registration-Trust or institution-Self-certified copies sufficient for claim of exemption-Denial of registration is held to be not valid [R. 17A]

Radheyshyam Mandir Trust v. CIT (E) (2022)100 ITR 168/ 220 TTJ 468/ 219 DTR 281 (Jaipur)(Trib)

S. 12AA : Procedure for registration-Trust or institution-Corporate social responsibility-In-house captive trust of its parent company established to meet corporate social responsibility-Refusal of registration of was held to be not valid. [S. 11, 12A]

KDDL Ethos Foundation v. CIT (E) (2022) 219 TTJ 93 / 216 DTR 54 (SMC) (Chd)(Trib)

S. 12AA : Procedure for registration-Trust or institution-No specific finding by the PCIT-Matter is remanded to the file of the PCIT to examine the issue a fresh in accordance with law. [S. (2(15), 11]

ICG-IISU Alumnae Association-Bandhan v. CIT(E)(2022) 215 TTJ 1 (UO) (Jaipur) (Trib)

S. 12AA : Procedure for registration-Trust or institution-Conserve and enhance the natural environment and bio diversity-Not carried on activity-No restrictions to carry on activities abroad-Denial of registration is not valid. [S.2(15), 11(1)(a) 13(1)(c)]

Environmental & Social Research Organisation v. CIT (E) (2022) 209 DTR 41 / 216 TTJ 221 (Chennai)(Trib)