COMMISSIONER OF INCOME TAX, EXEMPTION, vs. ARAVALI LIONS TRUST, UDAIPUR

PDF · subscribers
ITA/31/2018HC RajasthanRJHC01027608201812 April 2018Author: GOPAL KRISHAN VYAS,RAMCHANDRA SINGH JHALA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that no substantial question of law arises from the ITAT's order. The Court noted that there was a clear finding of fact by the ITAT that the respondent-assessee is engaged in charitable activities. This finding was supported by the fact that the Trust had been granted registration under Section 12-AA of the Act on 25.02.2008, which was still in force and had not been cancelled. Given this factual basis, the Court found no grounds to interfere with the ITAT's decision. The appeal filed by the Revenue was consequently dismissed. The operative direction was the dismissal of the Revenue's appeal, upholding the ITAT's order to grant approval under Section 8G(5)(vi).

What were the facts?

The Commissioner of Income Tax-Exemption (CIT-E), Jaipur, filed an appeal under Section 260A of the Income Tax Act, 1961, challenging the order dated 11.09.2017 passed by the Income Tax Appellate Tribunal (ITAT), Jodhpur. The ITAT had allowed the appeal of the respondent-assessee, Aravali Lions Trust, Udaipur, and directed the grant of approval under Section 8G(5)(vi) of the Act. The respondent-Trust is a charitable trust that had commenced construction of a building for its charitable activities, as evidenced by its financial statements. The Trust had previously been granted registration under Section 12-AA of the Act on 25.02.2008, which remained in force and had not been cancelled or withdrawn.

What were the issues?

1. Whether a substantial question of law arises from the ITAT's order allowing the grant of approval under Section 8G(5)(vi) of the Income Tax Act, 1961, to the respondent-assessee, Aravali Lions Trust, Udaipur. Assessee's Contention: The judgment does not record any specific contentions made by the assessee before the High Court. However, the ITAT's decision, which was upheld, implies that the assessee argued for the grant of approval based on its charitable activities and existing registration under Section 12-AA. Revenue's Contention: The appellant (Revenue) contended that a substantial question of law exists, warranting interference with the ITAT's order. The judgment does not explicitly detail the Revenue's arguments beyond the assertion that a substantial question of law arises.

Which sections of the Income-tax Act were involved?

Section 260A,Section 8G(5)(vi),Section 12-AA

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Income Tax Appeal No. 31 / 2018 Commissioner of Income Tax-Exemption, Jaipur. ----Appellant Versus Aravali Lions Trust, Udaipur (Rajasthan). ----Respondent _____________________________________________________ For Appellant(s) : Mr. K.K. Bissa. _____________________________________________________ HON'BLE MR. JUSTICE GOPAL KRISHAN VYAS HON'BLE MR. JUSTICE RAMCHANDRA SINGH JHALA

Judgment 12/04/2018

The instant Income Tax Appeal has been filed by the appellant- CIT (E), Jaipur, under Section 260A of the Income Tax Act, 1961 (Act of 1961) challenging the judgment dated 11.09.2017 passed by learned Income Tax Appellate Tribunal, Jodhpur Tribunal, Jodhpur (ITAT) in I.T.A. No.56/Jodh/2017 whereby appeal filed by respondent/assessee Aravali Lions Trust, was allowed and specific direction has been issued to grant approval under Section 8G (5) (vi) of the Act of 1961. After hearing the learned counsel for the appellant it emerges from the facts that respondent- Trust is a charitable trust; and in last two years the Trust has started constructing the building on his land for advancement of its charitable activities from the details mentioned in the financial statement. It is also (2 of 2) [ITA-31/2018]

very important aspect of the matter that assessee has been granted under Section 12-AA of the Act vide order dated 25.02.2008, which is still in force and the same has not been canceled or withdrawn at any time, which itself proves that the assessee is engaged in charitable activities.

In our opinion, there is clear cut finding based upon facts that the respondent/assessee is engaged in charitable activities then there is no question to say that any substantial question of law exists.

In view of above, no case is made out to interfere in this appeal filed by the Revenue, hence, this appeal is hereby dismissed.

(RAMCHANDRA SINGH JHALA) J. (GOPAL KRISHAN VYAS) J.

DJ/- 51

Recent GST High Court judgments

Search GST case law →