Hiralal Bhagwati v. CIT

246 ITR 188High Court2000#1581 most cited

What is Hiralal Bhagwati v. CIT authority for?

Granting registration under Section 12A or Section 12AA for charitable trusts requires the Commissioner to genuinely examine the trust's objects and past activities; once such registration is granted, the Assessing Officer cannot subsequently deny tax benefits by re-examining the trust's objects.

71

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2008 to 2026.

Also referred to as

Hiralal Bhagwati v. CIT · 246 ITR 188 · Section 12AA registration · Section 12A registration · charitable trust objects examination · past activities for registration · Section 2(15) general public utility · tax benefits after registration · Commissioner's duty 12AA · Assessing Officer denying benefits

Sections most often in play

Section 12ASection 11Section 143(3)Section 12Section 12AASection 12ABSection 154Section 2(15)

Issues it is cited on

section 12aa(1)(b)section 12aa(1)section 12aa(3)advancement of general public utilityproviso to section 2(15)corpus fundcancellation of registrationsection 254(2)section 13(3)section 13(1)section 2(15)mistake apparent from record

Judgments citing Hiralal Bhagwati v. CIT

Credit Gurantee Fund Trust, Mumbai vs. ITO (E) 1(1), Mumbai

In the result, the appeal of the assessee is allowed, as above

ITA 6282/MUM/2014[2010-11]Status: DisposedITAT Mumbai20 Jan 2017AY 2010-11

Bench: Shri G.S.Pannu & Shri Amit Shuklacredit Guarantee Fund Trust For Micro & Small Enterprises, 7Th Floor, Sme Development Centre, G-Block, Bandra Kurla Complex, Bandra(E), Mumbai 400 051 Pan:Aaatc 2613D ...... Appellant Vs. The Income Tax Officer (Exemptions), Pirmal Chambers, Parel, Mumbai 400 012 .... Respondent

For Appellant: Shri Arvind SondeFor Respondent: Shri Prawin Kumar
Section 11Section 11(2)Section 11(3)Section 143(3)Section 263

…ct by the DIT(E) is proof enough that the objects of the assessee are within the meaning of the expression ‘charitable purpose’ contained in section 2(15) of the Act. In support, reliance has been placed on the following judgments: (i) Hira Lal Bhagwati V CIT 246 ITR 188(Guj) (ii) Sonepat Hindu Educational and Charitable Society vs. CIT, 278 ITR 262(P&H) (iii) Madhya Pradesh Madhyam vs. CIT, 256 ITR 277(M.P) 11 5.2 On this aspect of the matter, the Ld. CIT-DR has merely reiterated the stand of the CIT(A), while not joining issues so far as the ratio laid down in the above judgments relied upon by the appellant…

Grishma Securities P.Ltd, Mumbai vs. ITO 4(1)(2), Mumbai

ITA 7130/MUM/2014[2006-07]Status: DisposedITAT Mumbai26 Aug 2016AY 2006-07
For Appellant: Shri Anuj Kishnadwala-ARFor Respondent: Shri K.V. Vispute-DR
Section 143(3)Section 154Section 254(1)

…(emphasis[14] supplied) 44. It is no doubt true that after the historic decision in L. C. Golak Nath v. Union of India [1967] 2 SCR 762, this court has accepted the doctrine of "prospective overruling". It is based on the philosophy : "The past cannot [2000] 246 ITR 188 (Guj) always be erased by a new judicial declaration." It may, however, be stated that this is an exception to the general rule of the doctrine of precedent. 45. Rectification of an order stems from the fundamental principle that justice is above all. It is exercised to remove the error and to disturb the finality. 46. In S. Nagaraj v. State of K…

ITO (E) 1(1), Mumbai vs. Brahman Sabha Malad, Mumbai

ITA 4693/MUM/2015[2009-10]Status: DisposedITAT Mumbai15 Jul 2016AY 2009-10

Bench: Shri Joginder Singhassessment Year: 2009-10 Income Tax Officer M/S. Brahman Sabha Malad (Exemption) 1(1) Brahman Sabha Marg बनाम/ Room No. 508, 5Th Floor Opp. Malad Police Station Vs. Piramal Chamber, Lalbaug Malad (W), Mumbai 40064 Mumbai 400012 (राज"व /Revenue) ("नधा"रती /Assessee) Pan. No. Aaatb0053A

Section 11Section 12ASection 2(15)

…ities. Therefore I find no infirmity in the conclusion of the learned CIT(A). The decision in the case of 5 M/s. Brahman Sabha Malad Madhya Pradesh Madhyam 256 ITR 277 further supports the case of the assessee. Hon’ble Gujarat High Court in Hiralal Bhagawati 246 ITR 188 (Guj.) examined the effect of registration under section 12A and held that registration under section 12A is not an ideal or empty formality. It requires that the CIT has to examine the objects of the creation of the trust and also whether the assessee is carrying out charitable activity in accordance with its object. Even otherwise even after gr…

Dy D.I.T. (E)-I(1), Mumbai vs. The Mumbai Metropolitan Region Development Authority (Mmrda), Mumbai

In the result, both the appeals filed by Revenue and Assessee are dismissed

ITA 4177/MUM/2008[2005-2006]Status: DisposedITAT Mumbai13 Jul 2016AY 2005-2006

Bench: Shri R.C. Sharma & Shri Sanjay Garg

For Appellant: Shri Ronak G. Doshi, A.RFor Respondent: Shri N.P. Singh, D.R
Section 10Section 10(20)Section 11Section 12ASection 13

…ge of Ahmedabad vs. ACIT 74, lTD 1 Surat City Gymkhana vs. ACIT 106 Taxmann, 114 Ahd (Mag.)” V) The learned CIT (A) also relied on the following High Court judgments: a) Madhya Pradesh Madhyam vs. CIT (2002), 256 ITR 277 (MP) b) Hiralal Bhagwat vs.CIT (2000) 246 ITR 188 (Guj.) 4. Following the decisions quoted above of various High Courts and different Benches of the Tribunal, the CIT (A) held that in the assessment proceedings, AO has to give effect to the registration granted under section 12A after satisfying himself to the correctness of application of income of such Trust or Institutions or accumulation of…

M/S. Mumbai Metropolitan Region Development Authority, Mumbai vs. The ADIT(E) RG- 1, Mumbai

In the result, both the appeals filed by Revenue and Assessee are dismissed

ITA 3841/MUM/2008[2005-2006]Status: DisposedITAT Mumbai13 Jul 2016AY 2005-2006

Bench: Shri R.C. Sharma & Shri Sanjay Garg

For Appellant: Shri Ronak G. Doshi, A.RFor Respondent: Shri N.P. Singh, D.R
Section 10Section 10(20)Section 11Section 12ASection 13

…ge of Ahmedabad vs. ACIT 74, lTD 1 Surat City Gymkhana vs. ACIT 106 Taxmann, 114 Ahd (Mag.)” V) The learned CIT (A) also relied on the following High Court judgments: a) Madhya Pradesh Madhyam vs. CIT (2002), 256 ITR 277 (MP) b) Hiralal Bhagwat vs.CIT (2000) 246 ITR 188 (Guj.) 4. Following the decisions quoted above of various High Courts and different Benches of the Tribunal, the CIT (A) held that in the assessment proceedings, AO has to give effect to the registration granted under section 12A after satisfying himself to the correctness of application of income of such Trust or Institutions or accumulation of…

Principal Commissioner of Income Tax-2 vs. M/s Indur Green Power Private Limited

ITTA/627/2015HC Telangana02 Jun 2016

Bench: RAMESH RANGANATHAN,M.SATYANARAYANA MURTHY

Sri. Maramma Temple Seva Trust, Bangalore vs. CIT, Bangalore

In the result, appeal of the assessee is allowed

ITA 818/BANG/2015[N.A.]Status: DisposedITAT Bangalore30 Oct 2015

Bench: Smt. Asha Vijayaraghavan & Shri. Abraham P. Georgei.T.A No818/Bang/2015 (Assessment Year : Na) Sri Maramma Temple Seva Trust, No.11, Maramma Temple Street, 1St Main Road, Vyalikaval, Bengaluru 560 003 .. Appellant Pan : Aants4131R V. Commissioner Of Income-Tax (E), Bengaluru .. Respondent Assessee By : None Revenue By : Shri. Sudhakar Rao, Cit – Dr-I Heard On : 21.10.2015 Pronounced On : 30.10.2015 O R D E R Per Abraham P. George:

For Appellant: NoneFor Respondent: Shri. Sudhakar Rao, CIT – DR-I
Section 12A

…jects of the trust. In our opinion, even under s. 12A of the Act, granting registration was not merely empty formality and our view is supported by the decision of the Hon’ble High Court of Gujarat in Hiralal Bhagwati vs. CIT (2000) 161 CTR (Guj) 401 : (2000) 246 ITR 188 (Guj), which is approved by the Hon’ble Supreme Court in Asstt. CIT vs. Surat City Gymkhana (2008) 216 CTR (SC) 23 : (2008) 170 Taxman 612 (SC). 30. For the reasons stated above, we are of the opinion that both these assessees are eligible to claim the exemption under s. 11 of the Act. We therefore cancel the order of the CIT(A) and direct the AO…

Mool Chand Khairati Ram Trust vs. Director of Income Tax (Exemptions)

The appeal is disposed of

ITA/141/2013HC Delhi27 Jul 2015
For Appellant: Mr C.S. Aggarwal, Senior Advocate withFor Respondent: Mr. Raghvendra Singh, Junior Standing Counsel
Section 11Section 11(1)(a)Section 12ASection 2(15)Section 260A

…ssing Officer back from further probe into the objects of the trust?” 31. A Division Bench of the Gujarat High Court held that the questions of law raised by the Revenue were covered by its earlier decision in the case of Hiralal Bhagwati v. CIT: (2000) 246 ITR 188 and dismissed the appeal filed by the Revenue. The Revenue preferred a Special Leave Petition against the decision of the Gujarat High Court. Whilst the Supreme Court declined to entertain the SLP in respect of the first question on the ground that the same was covered by the decision in the case of Hiralal Bhagwati (supra) and the same had…

Director of Income Tax

ITA/1335/2010HC Delhi21 May 2012
Section 13(1)(c)

…s fall in the last portion or the residuary part of the aforesaid clause. The Supreme Court in Surat City Gymkhana (supra), did not permit and allow the Revenue to challenge the ratio expounded by the Gujarat High Court in Hiralal Bhagwati vs. CIT, (2000) 246 ITR 188 (Guj.). It has been held in Hiralal Bhagwati’s case (supra) that once an institution has been registered under Section 12A/12AA, the Assessing Officer cannot go into and reexamine whether or not objects for which the institution was established is charitable within the meaning of Section 2(15) of the Act. This aspect has to be 2012:DHC:34…

The Commissioner of Income Tax-X

The appeal of the revenue is allowed with no order as to costs

ITA/349/2011HC Delhi08 Nov 2011
Section 143(3)Section 154Section 260ASection 80H

…was not brought to the notice of the Tribunal, there was a mistake apparent from the record which required rectification. In that case the Tribunal decided the appeal on 27.10.2000. A judgment of the Gujarat High Court in Hiralal Bhagwati v. CIT (2000) 246 ITR 188, which was the judgment of the jurisdictional High Court, was rendered a few months prior to the order of the 2011:DHC:5636-DB ITA-349-11 Page 8 of 10 Tribunal. However, the judgment was not brought to the attention of the Tribunal. An application under Section 254 (2) of the Income Tax Act was filed before the Tribunal requesting…

Assistant Commnr., Income Tax, Rajkot vs. Saurashtra Kutch Stock Exchange Ltd

C.A. No.-001171-001171 - 2004Supreme Court15 Sept 2008
Section 11Section 12ASection 143Section 154Section 25Section 254

…REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO. 1171 OF 2004 ASSISTANT COMMISSIONER, INCOME TAX, RAJKOT … APPELLANT VERSUS SAURASHTRA KUTCH STOCK EXCHANGE LTD. … RESPONDENT J U D G M E N T C.K. THAKKER, J. 1. The present appeal is directed against the judgment and order passed by the High Court of Gujarat, Ahmedabad on March 31, 2003 in Special Civil Application No. 1247 of 2002 [Assistant Commissioner of Income-Tax v. Saurashtra Kutch Stock Exchange Ltd., (2003) 262 ITR 146]. By the said judgment, the High Court confirmed the order passed by the Inco…