Section 17A of the Income Tax Act
The decision most relied on for Section 17A is CIT v. Vijay Vargiya Vani Charitable Trust (369 ITR 360), cited in 19 of the 26 judgments on BharatTax that turn on this section.
Leading authorities on Section 17A
The registration proceeding for a charitable trust and the assessment proceeding are distinct and separate; the Commissioner (Exemption) can only consider the objects of the trust when granting registration, not issues relevant to assessment.
Registration of a charitable trust under Section 12A/12AA is deemed to have taken effect from six months after the application date if the revenue does not respond within that period.
Registration of a charitable trust cannot be cancelled solely on the basis that trustees are misappropriating funds, if the trust is otherwise fulfilling its main object of imparting education.
Failure by the Commissioner to decide an application for registration under Section 12AA within the prescribed six-month period results in the deemed grant of registration.
