Dismissed

The Commissioner of Income Tax Exemptions Chandigarh v. Kalumal Shorimal Nathumal Rangwala Pvt. Family Dharamarth Trust

Punjab & Haryana HC7 Aug 2024ITA/76/2024

Case brief

AI extract

What is this about?

Income tax appeal challenging ITAT's setting aside of cancellation of a family charitable-religious trust's registration under Section 12A. The High Court found no perversity or substantial question of law and dismissed the appeal.

What the court decided

AI extract

The Commissioner of Income Tax Exemptions Chandigarh Vs… — Income Tax | Punjab & Haryana HC (2024)

¶1

ITA-76-2024 (O&M)

¶2

Page 1 of 2

¶3

133

¶4

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

¶5

ITA-76-2024 (O&M) Date of Decision: 07.08.2024

¶6

THE COMM I SSIONER OF INCOME TAX ( EXEMPTIONS), CHANDIGA R H

¶7

. . . . Appellan t

¶8

Vs.

¶9

KALUMAL S HORIMAL NATHUMAL RA N GWALA PVT. FAMILY DHARAMA R TH TRUST

¶10

. . . . Responden t **_****_ CORAM: HON’BLE MR. JUSTICE SANJEEV PRAKASH SHARMA HON’BLE MR. JUSTICE SANJAY VASHISTH ****** Present: M r. Amanpreet (A.P.) Singh, Sr. Standing Counsel f or the appellant.

¶11

¶12

SANJEEV PRAKASH SHARMA, J.(Oral)

¶13

CM-9282-CII-2024

¶14

E xemption application is allowe d as prayed for.

¶15

Main case

¶16

Learne d counsel for the appellant assa i ls the order passed by the ITA T where b y it has set aside the order p a ssed by the PCIT whereby th e PCIT h ad cancelled the registration o f the respondent in Form 10A C and Fo r m 10AB.

¶17

Learne d counsel submits that the factu a l aspects had been examined b y the PC I T, and the nature of formation under trust reflected that it wa s not for charitable purposes.

¶18

MOHIT GOYAL 2024.08.08 10:09 I attest to the accuracy and integrity of this document

¶19

ITA-76-2024 (O&M)

¶20

Page 2 of 2

¶21

Howe v er, we find that the trust was created for the benefit of th e family, and also for religious and cha r itable purposes. The ITAT ha s given f indings that the assessee trust w as formed in the year 1942 an d was co n tinuously doing the same acti v ity. It was also registered unde r Sectio n 12A of the Act, and in view t h ereof, the ITAT has reached t o the co n clusion relying upon the judgm e nt passed by the Supreme Cour t in Ra d hasoami Satsang vs. Commiss i oner of Income-tax [1992] 6 0 Taxma n 248 (SC) and Commissioner of Income-tax vs. Smt. Kasturba i Walch a nd Trust, [1967] 631 ITR 656 (SC) . It is also noticed that th e benefi c iaries of the trust had also iss u ed a certificate of renunciatio n which m eans that they had already r e nounced their benefit from th e

¶22

trust.

¶23

In vie w thereof, the factual findings h a ve been arrived at by the ITA T which d o not require any substantial q u estion of law to be examined b y this C o urt. No perversity in the order o f the order of the ITAT herei n on rec o rd is made out.