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| The Tax Publishers2020 TaxPub(DT) 2585 (SC) : (2020) 274 TAXMAN 0378 INCOME TAX ACT, 1961
Section 261 and 12AA
Where the department preferred SLP to appeal against the judgment of Bombay High Court in CIT (Exemptions) v. Manekji Mota Charitable Trust [ITA No. 766 of 2017, dt. 16-8-2019] : 2019 TaxPub(DT) 6639 (Bom-HC), whereby the High Court held that Tribunal in its order noted the fact that at the time of registration of the Trust, question of application of income of the Trust was premature, that undisputedly 71% of the receipts of Trust were being spent in accordance with its objects, therefore, this itself would establish that Trust was in existence. A partial expenditure which was not authorized by the Trust would not itself lead to the Trust becoming non-genuine, the consequence would be that benefit of section 11 would not be available to that extent. Thus, appeal of revenue was dismsised, the Supreme Court dismissed the SLP.
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Appeal (Supreme Court) - Special leave petition - Charitable trust - Cancellation of registration under section 12AA--charitable or religious trust
Department preferred SLP to appeal against the judgment of Bombay High Court in CIT (Exemptions) v. Manekji Mota Charitable Trust [ITA No. 766 of 2017, dt. 16-8-2019] : 2019 TaxPub(DT) 6639 (Bom-HC), whereby the High Court held that Tribunal in its order noted the fact that at the time of registration of the Trust, question of application of income of the Trust was premature, that undisputedly 71% of the receipts of Trust were being spent in accordance with its objects, therefore, this itself would establish that Trust was in existence. A partial expenditure which was not authorized by the Trust would not itself lead to the Trust becoming non-genuine, the consequence would be that benefit of section 11 would not be available to that extent. Thus, appeal of revenue was dismsised.Held: The Supreme Court dismissed the SLP.
REFERRED :
FAVOUR : SLP dismissed.
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