What did the High Court hold?

The High Court found it appropriate to remand the case back to the Authority for reconsideration. The petitioner was also advised to consider incorporating necessary amendments to align with the charitable activities as per the Income Tax Act.

ISKCON Charities filed a writ petition challenging an order by the Director of Income Tax (Exemption) that denied approval for amendments to the Trust Deed of India Heritage Trust. The approval of these amendments was crucial for the petitioner Trust to obtain exemption under the Income Tax Act.

What were the issues?

Whether the proposed amendments to the Trust Deed were charitable and religious in nature, and if the denial of approval by the IT authority was justified.

Iskcon Charities vs Director of Income Tax(Exemption) | Karnataka High Court 2017

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IN THE HIGH COURT OF KARNATAKA AT BENGALURU

DATED THIS THE 31ST DAY OF OCTOBER, 2017

B E F O R E

THE HON’BLE DR.JUSTICE VINEET KOTHARI

WRIT PETITION NO.6060/2016 (T-IT)

BETWEEN:

ISKCON CHARITIES AT 8TH MILE, GOKULAM COMPLEX DODDAKALLASANDRA KANAKAPURA ROAD BANGALORE-560062 REPRESENTED BY ITS AUTHORIZED SIGNATORY SRI VISHAL KUMAR AGARWAL S/O V K AGARWAL AGED ABOUT 43 YEARS. ... PETITIONER (BY SMT.VANI H, ADVOCATE)

AND

DIRECTOR OF INCOME TAX(EXEMPTION) OFFICE OF THE DIRECTOR OF INCOME TAX(EXEMPTION) 3RD FLOOR, CR BUILDING QUEENS ROAD BANGALORE-560001. ... RESPONDENT (BY SRI JEEVAN J.NEERALGI, ADVOCATE)

THIS WRIT PETITION IS FILED UNDER ARTICLES 226 AND 227 OF THE CONSTITUTION OF INDIA PRAYING TO SET ASIDE THE ORDER DATED 30.01.2008 ISSUED BY THE RESPONDENT REJECTING THE APPROVAL TO AMEND THE OBJECTS OF THE 2/4

TRUST DEED DATED 26.04.1999 AT ANNEX-D; TO DIRECT RESPONDENT TO APPROVE THE AMENDMENT OF OBJECTIVES OF THE TRUST DEED AS PRAYER FOR IN THE APPLICATION DATED 16.01.2008 AT ANNEX-C.

THIS PETITION COMING ON FOR PRELIMINARY HEARING IN ‘B’ GROUP, THIS DAY THE COURT MADE THE FOLLOWING:

ORDER

Ms.Vani H, Adv. for Petitioner Mr.Jeevan J.Neeralgi, Adv. for Respondent

The petitioner, ISKCON CHARITIES, Hare Krishna Hill, Rajajinagar, Bengaluru, is aggrieved by the impugned order passed by the respondent-Director of Income Tax (Exemption), Bengaluru, denying the approval in respect of certain proposed amendments in the Trust Deed of the applicant, M/s India Heritage Trust for which an application was made by the petitioner on 16.1.2008.

On the basis of such approval of amendment in the Trust Deed, the exemption under the relevant provisions of the Income Tax Act for the petitioner Trust would depend and therefore, aggrieved by the said order, 3/4

the petitioner has approached this court by way of the present writ petition. 3. Whether the proposed amendments in the Trust Deed are Charitable and Religious in nature or not, the distinction between the two not being in water tight compartments, it is only appropriate that a holistic view of the matter is taken. 4. After hearing the learned counsels for the parties, without going into the details of the matter, this court considers it appropriate to remand the case back to the said Authority for reconsideration of the case of the petitioner Trust in this regard. At the same time, the petitioner-Trust may also consider incorporating the requisite amendments in the proposed amendments of the Trust Deed to fall in line with the letter and spirit of the Charitable activities of the Trust as per the concerned provisions of the Income Tax Act, 1961. 5. With these observations, the petition is disposed of and setting aside the impugned order dated 4/4

30.1.2008, the matter is remanded back to the said authority to reconsider the matter and pass fresh orders in accordance with law within six months from today, after giving reasonable opportunity of hearing to the petitioner Trust.

Sd/-

JUDGE vgh*

ISKCON CHARITIES vs. DIRECTOR OF INCOME TAX(EXEMPTION)

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