Calcutta High Court
(Exemption) vs She Foundation on 13 February, 2023
Author: T.S. Sivagnanam
Bench: T.S. Sivagnanam, Hiranmay Bhattacharyya
O-80
ITA/292/2009
IN THE HIGH COURT AT CALCUTTA
SPECIAL JURISDICTION (INCOME TAX)
ORIGINAL SIDE
DIRECTOR OF INCOME TAX
(EXEMPTION), KOLKATA
-Versus-
SHE FOUNDATION
BEFORE :
THE HON'BLE JUSTICE T.S. SIVAGNANAM
And
THE HON'BLE JUSTICE HIRANMAY BHATTACHARYYA
Date : 13th February, 2023
Appearance :
Mr. Prithu Dudheria, Adv.
...for the appellant.
The Court : This appeal filed by the revenue under
Section 260A of the Income Tax Act, 1961 (the 'Act' for
brevity) is directed against the order dated 30th January, 2009
passed by the Income Tax Appellate Tribunal, "A" Bench, Kolkata
(the Tribunal) in ITA No.2101/Kol/2008 and ITA No.44/Kol/2009.
The appeal was admitted on 11th April, 2012 on the
following substantial question of law:
(i) Whether, on the facts and circumstances of the
case, the Income-tax Appellate Tribunal is
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correct in holding that a trust has to be
registered under Section 12AA and exemption
certificate granted under section 80G(5)(vi)
of the Income-tax Act, 1961 on the basis of
the recitals in the trust deed though the
trust had not carried out any charitable
activities ?
We have heard Mr. Prithu Dudhe, learned standing
counsel for the appellant/revenue.
The Director of Income Tax (Exemption) cancelled the
certificate of registration granted under Section 12AA of the
Act on the ground that the trust has not carried out charitable
activity. The correctness of the order was tested before the
learned Tribunal which had taken note of the various decisions
of the Hon'ble Supreme Court and, in our view, rightly held
that while granting registration to the charitable institution
or trust, if it is at the commencement stage, the powers of DIT
with whom the application is filed by such trust/institution
are limited to the aspect of examining whether or not the
objects of the trust are charitable nature.
The revenue does not dispute the fact that the objects
of the trust are religious and charitable in nature. If such
be the factual position, the learned Tribunal rightly allowed
the appeal filed by the respondent.
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For such reason, we find no ground to interfere with the order passed by the learned Tribunal. Accordingly, the appeal filed by the revenue (ITA/292/2009) is dismissed and the substantial question of law is answered against the revenue.
(T.S. SIVAGNANAM, J.) (HIRANMAY BHATTACHARYYA, J.) A/s./S.Kumar