THE COMMISSIONER OF INCOME TAX vs. ST GEORGE EDUCATIONAL TRUST

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ITA/899/2006HC KarnatakaKAHC01058910200606 August 2012Bench: B.MANOHAR,K.SREEDHAR RAO3 pages
AI SummaryDismissed

What did the High Court hold?

The Tribunal held that registration under Section 12-A should be granted at the initial stage. The genuineness of charitable activities should be assessed during the assessment of returns, not at the time of applying for registration.

What were the facts?

The Revenue appealed against an ITAT order that confirmed the Director of Income Tax's decision regarding registration under Section 12-A. The core issue was whether registration could be denied at the initial stage.

What were the issues?

Whether registration under Section 12-A of the Income Tax Act can be denied at the initial stage based on the genuineness of charitable activities, or if this assessment should be deferred to the assessment of returns.

Which sections of the Income-tax Act were involved?

Section 12-A

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 06TH DAY OF AUGUST 2012 PRESENT THE HON'BLE MR.JUSTICE K.SREEDHAR RAO AND THE HON'BLE MR. JUSTICE B.MANOHAR ITA NO.899/2006 BETWEEN: 1. THE COMMISSIONER OF INCOME TAX, CENTRAL CIRCLE, C.R.BUILDING, QUEENS ROAD, BANGALORE. 2. THE DIRECTOR OF INCOME TAX(EXEMPTIONS) CENTRAL CIRCLE –I, C.R.BUILDING, QUEENS ROAD, BANGALORE. …APPELLANTS (BY SRI.B.R.INDRAKUMAR, ADV) AND: ST.GEORGE EDUCATIONAL TRUST, III MAIN, 4TH CROSS, OMBR LAYOUT, BANASAWADI, BANGALORE – 33. …. RESPONDENT (BY SRI.A.SHANKAR, ADV)

2 ITA FILED U/S.260-A OF I.T.ACT, 1961 ARISING OUT OF ORDER DATED 16-12-2005 PASSED IN ITA.NO.920/BANG/2003 FOR THE ASSESSMENT YEARS 2002-03, PRAYING TO FORMULATE THE SUBSTANTIAL QUESTIONS OF LAW STATED THEREIN AND ALLOW THE APPEAL AND SET ASIDE THE ORDERS PASSED BY THE ITAT, BANGALORE IN ITA.NO.920/BANG/2003 DATED 16- 12-2005 CONFIRMING THE ORDER PASSED BY THE DIRECTOR OF INCOME TAX (EXEMPTIONS), BANGALORE, IN THE INTEREST OF JUSTICE AND EQUITY. THIS APPEAL COMING ON FOR HEARING THIS DAY, SREEDHAR RAO J., DELIVERED THE FOLLOWING: J U D G M E N T This Court in the case of Director of Income Tax V/S Garden City Educational Trust reported in (2011) 330 ITR 480 (Karn) and also in unreported judgment in the case of Director of Income Tax v/s M/s Venkatesha Education Society in ITA No.182/2011 disposed off on 10th July 2012 has held that the applicant should be granted registration u/s.12-A of the Act. The genuineness of the charitable activities have to be assessed only at the time of assessment of the returns and that registration need not be denied at the initial stage when an application is made for grant of registration u/s 12-A of the Act.

3 2. In view of the above said decisions, the question of law framed in this appeal is answered against the revenue and the appeal is accordingly dismissed. Sd/- JUDGE Sd/- JUDGE mpk/-*

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