CIT v. Kamala Town Trust

217 ITR 699Supreme Court of India1996#3608 most cited

What is CIT v. Kamala Town Trust authority for?

Cancellation of registration granted under Section 12AA of the Income Tax Act requires proof of specified violations, not mere suspicion.

33

judgments rely on this decision, according to BharatTax’s citation analysis of 292,668 Indian tax judgments — from 2015 to 2025.

Also referred to as

CIT v. Kamala Town Trust · Section 12AA · Section 12AB(4) · cancellation of registration · specified violations · suspicion vs evidence · charitable trust activities

Sections most often in play

Section 11Section 119Section 12Section 12AASection 143(3)Section 13Section 10(22)Section 10(22A)

Issues it is cited on

section 12ab(4)(ii)section 12aa(1)(b)(ii)section 10(22)section 12aa(1)(b)section 12aa(1)section 13(1)(d)section 10(23c)(iiiad)section 12aa(3)section 12ab(4)section 11(5)protective assessmentcancellation of registration

Judgments citing CIT v. Kamala Town Trust

MARUTHI EDUCATIONAL SOCIETY,HYDERABAD vs. DCIT., CENTRAL CIRCLE-2(1), HYDERABAD

In the result, the appeal filed by the assessee in ITA

ITA 873/HYD/2025[2019-20]Status: DisposedITAT Hyderabad25 Aug 2025AY 2019-20

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

Section 12A

…g out its activities in accordance with its main objects as held by ITAT Hyderabad Bench in the case of ACIT Vs. Sai Society in ITA No.1857/2022. This is further fortified by the decision of Hon’ble Supreme Court in the case of CIT vs. Kamla Town Trust [1996] 217 ITR 699 (SC).Therefore, in our considered view, unless the Ld. PCIT (Central) makes out a case that there exists one or more specified violations referred to under Section 12AB(4) and the Explanation provided therein, merely on suspicion and surmises basis the registration granted under Section 12AA of the Act, cannot be cancelled. In our considered view…

MALLA REDDY EDUCATIONAL SOCIETY,HYDERABAD vs. DCIT., CENTRAL CIRCLE-2(1), HYDERABAD

In the result, the appeal filed by the assessee in ITA

ITA 872/HYD/2025[2022-23]Status: DisposedITAT Hyderabad25 Aug 2025AY 2022-23
Section 12A

…g out its activities in accordance with its main objects as held by ITAT Hyderabad Bench in the case of ACIT Vs. Sai Society in ITA No.1857/2022. This is further fortified by the decision of Hon’ble Supreme Court in the case of CIT vs. Kamla Town Trust [1996] 217 ITR 699 (SC).Therefore, in our considered view, unless the Ld. PCIT (Central) makes out a case that there exists one or more specified violations referred to under Section 12AB(4) and the Explanation provided therein, merely on suspicion and surmises basis the registration granted under Section 12AA of the Act, cannot be cancelled. In our considered view…

MALLA REDDY EDUCATIONAL SOCIETY,HYDERABAD vs. DCIT., CENTRAL CIRCLE-2(1), HYDERABAD

In the result, the appeal filed by the assessee in ITA

ITA 871/HYD/2025[2019-20]Status: DisposedITAT Hyderabad25 Aug 2025AY 2019-20

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

Section 12A

…g out its activities in accordance with its main objects as held by ITAT Hyderabad Bench in the case of ACIT Vs. Sai Society in ITA No.1857/2022. This is further fortified by the decision of Hon’ble Supreme Court in the case of CIT vs. Kamla Town Trust [1996] 217 ITR 699 (SC).Therefore, in our considered view, unless the Ld. PCIT (Central) makes out a case that there exists one or more specified violations referred to under Section 12AB(4) and the Explanation provided therein, merely on suspicion and surmises basis the registration granted under Section 12AA of the Act, cannot be cancelled. In our considered view…

CMR ENGINEERING EDUCATIONAL SOCIETY,HYDERABAD vs. DCIT., CENTRAL CIRCLE-2(1), HYDERABAD

In the result, the appeal filed by the assessee is allowed

ITA 870/HYD/2025[2022-23]Status: DisposedITAT Hyderabad25 Aug 2025AY 2022-23

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

Section 12A

…g out its activities in accordance with its main objects as held by ITAT Hyderabad Bench in the case of ACIT Vs. Sai Society in ITA No.1857/2022. This is further fortified by the decision of Hon’ble Supreme Court in the case of CIT vs. Kamla Town Trust [1996] 217 ITR 699 (SC).Therefore, in our considered view, unless the Ld. PCIT (Central) makes out a case that there exists one or more specified violations referred to under Section 12AB(4) and the Explanation provided therein, merely on suspicion and surmises 48 CMR Engineering Educational Society basis the registration granted under Section 12AA of the Act, ca…

CMR EDUCATIONAL SOCIETY,HYDERABAD vs. DCIT., CENTRAL CIRCLE-2(1), HYDERABAD

In the result, the appeal filed by the assessee in ITA

ITA 869/HYD/2025[2022-23]Status: DisposedITAT Hyderabad25 Aug 2025AY 2022-23

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

Section 12A

…g out its activities in accordance with its main objects as held by ITAT Hyderabad Bench in the case of ACIT Vs. Sai Society in ITA No.1857/2022. This is further fortified by the decision of Hon’ble Supreme Court in the case of CIT vs. Kamla Town Trust [1996] 217 ITR 699 (SC).Therefore, in our considered view, unless the Ld. PCIT (Central) makes out a case that there exists one or more specified violations referred to under Section 12AB(4) and the cannot be cancelled. In our considered view, suspicion however strong cannot take the place of evidence as held by the Hon’ble Supreme Court in the case of Umacharan Sh…

CMR EDUCATIONAL SOCIETY,HYDERABAD vs. DCIT., CENTRAL CIRCLE-2(1), HYDERABAD

In the result, the appeal filed by the assessee in ITA

ITA 868/HYD/2025[2019-20]Status: DisposedITAT Hyderabad25 Aug 2025AY 2019-20

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

Section 12A

…g out its activities in accordance with its main objects as held by ITAT Hyderabad Bench in the case of ACIT Vs. Sai Society in ITA No.1857/2022. This is further fortified by the decision of Hon’ble Supreme Court in the case of CIT vs. Kamla Town Trust [1996] 217 ITR 699 (SC).Therefore, in our considered view, unless the Ld. PCIT (Central) makes out a case that there exists one or more specified violations referred to under Section 12AB(4) and the cannot be cancelled. In our considered view, suspicion however strong cannot take the place of evidence as held by the Hon’ble Supreme Court in the case of Umacharan Sh…

CMR TECHNICAL EDUCATION SOCIETY,HYDERABAD vs. DCIT., CENTRAL CIRCLE-2(1), HYDERABAD

In the result, the appeal filed by the assessee in ITA

ITA 867/HYD/2025[2022-23]Status: DisposedITAT Hyderabad25 Aug 2025AY 2022-23
Section 12A

…g out its activities in accordance with its main objects as held by ITAT Hyderabad Bench in the case of ACIT Vs. Sai Society in ITA No.1857/2022. This is further fortified by the decision of Hon’ble Supreme Court in the case of CIT vs. Kamla Town Trust [1996] 217 ITR 699 (SC).Therefore, in our considered view, unless the Ld. PCIT (Central) makes out a case that there exists one or more specified violations referred to under Section 12AB(4) and the Explanation provided therein, merely on suspicion and surmises basis the registration granted under Section 12AA of the Act, cannot be cancelled. In our considered view…

CMR TECHNICAL EDUCATION SOCIETY,HYDERABAD vs. DCIT., CENTRAL CIRCLE-2(1), HYDERABAD

In the result, the appeal filed by the assessee in ITA

ITA 866/HYD/2025[2019-20]Status: DisposedITAT Hyderabad25 Aug 2025AY 2019-20

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

Section 12A

…g out its activities in accordance with its main objects as held by ITAT Hyderabad Bench in the case of ACIT Vs. Sai Society in ITA No.1857/2022. This is further fortified by the decision of Hon’ble Supreme Court in the case of CIT vs. Kamla Town Trust [1996] 217 ITR 699 (SC).Therefore, in our considered view, unless the Ld. PCIT (Central) makes out a case that there exists one or more specified violations referred to under Section 12AB(4) and the Explanation provided therein, merely on suspicion and surmises basis the registration granted under Section 12AA of the Act, cannot be cancelled. In our considered view…

K M R EDUCATIONAL SOCIETY,HYDERABAD vs. DCIT., CENTRAL CIRCLE-2(1), HYDERABAD

In the result, the appeal filed by the assessee in ITA

ITA 865/HYD/2025[2022-23]Status: DisposedITAT Hyderabad25 Aug 2025AY 2022-23

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

Section 12A

…g out its activities in accordance with its main objects as held by ITAT Hyderabad Bench in the case of ACIT Vs. Sai Society in ITA No.1857/2022. This is further fortified by the decision of Hon’ble Supreme Court in the case of CIT vs. Kamla Town Trust [1996] 217 ITR 699 (SC).Therefore, in our considered view, unless the Ld. PCIT (Central) makes out a case that there exists one or more specified violations referred to under Section 12AB(4) and the Explanation provided therein, merely on suspicion and surmises basis the registration granted under Section 12AA of the Act, cannot be cancelled. In our considered view…

K M R EDUCATIONAL SOCIETY,HYDERABAD vs. DCIT., CENTRAL CIRCLE-2(1), HYDERABAD

In the result, the appeal filed by the assessee in ITA

ITA 864/HYD/2025[2019-20]Status: DisposedITAT Hyderabad25 Aug 2025AY 2019-20

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

Section 12A

…g out its activities in accordance with its main objects as held by ITAT Hyderabad Bench in the case of ACIT Vs. Sai Society in ITA No.1857/2022. This is further fortified by the decision of Hon’ble Supreme Court in the case of CIT vs. Kamla Town Trust [1996] 217 ITR 699 (SC).Therefore, in our considered view, unless the Ld. PCIT (Central) makes out a case that there exists one or more specified violations referred to under Section 12AB(4) and the Explanation provided therein, merely on suspicion and surmises basis the registration granted under Section 12AA of the Act, cannot be cancelled. In our considered view…

MARRI EDUCATIONAL SOCIETY,HYDERABAD vs. DCIT., CENTRAL CIRCLE-2(1), HYDERABAD

In the result, the appeal filed by the assessee in ITA

ITA 863/HYD/2025[2022-23]Status: DisposedITAT Hyderabad25 Aug 2025AY 2022-23

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

Section 12A

…g out its activities in accordance with its main objects as held by ITAT Hyderabad Bench in the case of ACIT Vs. Sai Society in ITA No.1857/2022. This is further fortified by the decision of Hon’ble Supreme Court in the case of CIT vs. Kamla Town Trust [1996] 217 ITR 699 (SC).Therefore, in our considered view, unless the Ld. PCIT (Central) makes out a case that there exists one or more specified violations referred to under Section 12AB(4) and the Explanation provided therein, merely on suspicion and surmises basis the registration granted under Section 12AA of the Act, cannot be cancelled. In our considered view…

CHANDRAMMA EDUCATIONAL SOCIETY,HYDERABAD vs. DCIT., CENTRAL CIRCLE-2(1), HYDERABAD

In the result, the appeal filed by the assessee in ITA

ITA 861/HYD/2025[2022-23]Status: DisposedITAT Hyderabad25 Aug 2025AY 2022-23

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

Section 12A

…g out its activities in accordance with its main objects as held by ITAT Hyderabad Bench in the case of ACIT Vs. Sai Society in ITA No.1857/2022. This is further fortified by the decision of Hon’ble Supreme Court in the case of CIT vs. Kamla Town Trust [1996] 217 ITR 699 (SC).Therefore, in our considered view, unless the Ld. PCIT (Central) makes out a case that there exists one or more specified violations referred to under Section 12AB(4) and the cannot be cancelled. In our considered view, suspicion however strong cannot take the place of evidence as held by the Hon’ble Supreme Court in the case of Umacharan Sh…

CHANDRAMMA EDUCATIONAL SOCIETY,HYDERABAD vs. DCIT., CENTRAL CIRCLE-2(1), HYDERABAD

In the result, the appeal filed by the assessee in ITA

ITA 860/HYD/2025[2019-20]Status: DisposedITAT Hyderabad25 Aug 2025AY 2019-20

Bench: SHRI VIJAY PAL RAO, HON’BLE (Vice President), SHRI MANJUNATHA G, HON’BLE (Accountant Member)

Section 12A

…g out its activities in accordance with its main objects as held by ITAT Hyderabad Bench in the case of ACIT Vs. Sai Society in ITA No.1857/2022. This is further fortified by the decision of Hon’ble Supreme Court in the case of CIT vs. Kamla Town Trust [1996] 217 ITR 699 (SC).Therefore, in our considered view, unless the Ld. PCIT (Central) makes out a case that there exists one or more specified violations referred to under Section 12AB(4) and the cannot be cancelled. In our considered view, suspicion however strong cannot take the place of evidence as held by the Hon’ble Supreme Court in the case of Umacharan Sh…

NETENRICH TECHNOLOGIES PRIVATE LIMITED,HYDERABAD vs. DCIT., CIRCLE - 5(1), HYDERABAD

In the result, the appeal filed by the assessee is allowed

ITA 870/HYD/2024[2020-2021]Status: DisposedITAT Hyderabad02 Jan 2025AY 2020-2021

Bench: SHRI MANJUNATHA G. (Accountant Member), SHRI K.NARASIMHA CHARY (Judicial Member)

Section 12A

…g out its activities in accordance with its main objects as held by ITAT Hyderabad Bench in the case of ACIT Vs. Sai Society in ITA No.1857/2022. This is further fortified by the decision of Hon’ble Supreme Court in the case of CIT vs. Kamla Town Trust [1996] 217 ITR 699 (SC).Therefore, in our considered view, unless the Ld. PCIT (Central) makes out a case that there exists one or more specified violations referred to under Section 12AB(4) and the Explanation provided therein, merely on suspicion and surmises 48 CMR Engineering Educational Society basis the registration granted under Section 12AA of the Act, ca…

ROLAND EDUCATIONAL & CHARITABLE TRUST,BERHAMPUR vs. DCIT, BERHAMPUR CIRCLE, BERHAMPUR

Appeals are allowed in above terms

ITA 471/CTK/2019[2007-08]Status: DisposedITAT Cuttack15 Feb 2021AY 2007-08

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri S.K. TulsiyanFor Respondent: Shri M.K. Goutham, CIT-DR
Section 10

…the non- educational objects have been deleted, as invalid by relying upon Clause No.27 of the registered Trust Deed dated 19-11-1997. Pr.CCIT further relied upon the decision rendered by Hon‘ble Supreme Court in the case of CIT vs. Kamala Town Trust – (1996) 217 ITR 699 wherein it is held that the Trust Deed could be rectified through a competent civil court under the relevant provisions of Specific Relief Act or by the settler himself by executing a supplementary Trust Deed. Clause 27 of the original Trust Deed dated 19-11-1997 reads as under :- ―27. The Permanent Trustees shall have the power to add, alter, am…

ROLAND EDUCATIONAL & CHARITABLE TRUST,BERHAMPUR vs. DCIT, BERHAMPUR CIRCLE, BERHAMPUR

Appeals are allowed in above terms

ITA 470/CTK/2019[2006-07]Status: DisposedITAT Cuttack15 Feb 2021AY 2006-07

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri S.K. TulsiyanFor Respondent: Shri M.K. Goutham, CIT-DR
Section 10

…the non- educational objects have been deleted, as invalid by relying upon Clause No.27 of the registered Trust Deed dated 19-11-1997. Pr.CCIT further relied upon the decision rendered by Hon‘ble Supreme Court in the case of CIT vs. Kamala Town Trust – (1996) 217 ITR 699 wherein it is held that the Trust Deed could be rectified through a competent civil court under the relevant provisions of Specific Relief Act or by the settler himself by executing a supplementary Trust Deed. Clause 27 of the original Trust Deed dated 19-11-1997 reads as under :- ―27. The Permanent Trustees shall have the power to add, alter, am…

ROLAND EDUCATIONAL & CHARITABLE TRUST,GANJAM vs. CHEIF CIT, BHUBANESWAR

Appeals are allowed in above terms

ITA 261/CTK/2019[2010-11]Status: DisposedITAT Cuttack15 Feb 2021AY 2010-11

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri S.K. TulsiyanFor Respondent: Shri M.K. Goutham, CIT-DR
Section 10

…the non- educational objects have been deleted, as invalid by relying upon Clause No.27 of the registered Trust Deed dated 19-11-1997. Pr.CCIT further relied upon the decision rendered by Hon‘ble Supreme Court in the case of CIT vs. Kamala Town Trust – (1996) 217 ITR 699 wherein it is held that the Trust Deed could be rectified through a competent civil court under the relevant provisions of Specific Relief Act or by the settler himself by executing a supplementary Trust Deed. Clause 27 of the original Trust Deed dated 19-11-1997 reads as under :- ―27. The Permanent Trustees shall have the power to add, alter, am…

ROLAND EDUCATIONAL & CHARITABLE TRUST,BERHAMPUR vs. DCIT, BERHAMPUR CIRCLE, BERHAMPUR

Appeals are allowed in above terms

ITA 469/CTK/2019[2005-06]Status: DisposedITAT Cuttack15 Feb 2021AY 2005-06

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri S.K. TulsiyanFor Respondent: Shri M.K. Goutham, CIT-DR
Section 10

…the non- educational objects have been deleted, as invalid by relying upon Clause No.27 of the registered Trust Deed dated 19-11-1997. Pr.CCIT further relied upon the decision rendered by Hon‘ble Supreme Court in the case of CIT vs. Kamala Town Trust – (1996) 217 ITR 699 wherein it is held that the Trust Deed could be rectified through a competent civil court under the relevant provisions of Specific Relief Act or by the settler himself by executing a supplementary Trust Deed. Clause 27 of the original Trust Deed dated 19-11-1997 reads as under :- ―27. The Permanent Trustees shall have the power to add, alter, am…

RONALD EDUCATIONAL & CHARITABLE TRUST,GANJAM vs. CHEIF CIT, BHUBANESWAR

Appeals are allowed in above terms

ITA 368/CTK/2019[2008-09]Status: DisposedITAT Cuttack15 Feb 2021AY 2008-09

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri S.K. TulsiyanFor Respondent: Shri M.K. Goutham, CIT-DR
Section 10

…the non- educational objects have been deleted, as invalid by relying upon Clause No.27 of the registered Trust Deed dated 19-11-1997. Pr.CCIT further relied upon the decision rendered by Hon‘ble Supreme Court in the case of CIT vs. Kamala Town Trust – (1996) 217 ITR 699 wherein it is held that the Trust Deed could be rectified through a competent civil court under the relevant provisions of Specific Relief Act or by the settler himself by executing a supplementary Trust Deed. Clause 27 of the original Trust Deed dated 19-11-1997 reads as under :- ―27. The Permanent Trustees shall have the power to add, alter, am…

ROLAND INSTITUTE OF PHARMACEUTICAL SCIENCES,GANJAM vs. CHEIF CIT, BHUBANESWAR

Appeals are allowed in above terms

ITA 270/CTK/2019[2012-13]Status: DisposedITAT Cuttack15 Feb 2021AY 2012-13

Bench: Shri Satbeer Singh Godara & Shri Laxmi Prasad Sahu

For Appellant: Shri S.K. TulsiyanFor Respondent: Shri M.K. Goutham, CIT-DR
Section 10

…the non- educational objects have been deleted, as invalid by relying upon Clause No.27 of the registered Trust Deed dated 19-11-1997. Pr.CCIT further relied upon the decision rendered by Hon‘ble Supreme Court in the case of CIT vs. Kamala Town Trust – (1996) 217 ITR 699 wherein it is held that the Trust Deed could be rectified through a competent civil court under the relevant provisions of Specific Relief Act or by the settler himself by executing a supplementary Trust Deed. Clause 27 of the original Trust Deed dated 19-11-1997 reads as under :- ―27. The Permanent Trustees shall have the power to add, alter, am…

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