11/11, 08:01] Sekarreporter 1: https://www.taxscan.in/thanthi-trust-is-eligible-for-exemption-under-section-12a-of-the-income-tax-act-1961-madras-high-court/82811/ [11/11, 08:01] Sekarreporter 1: Logo HEADLINES World Accountants Day: ICAI Launches Global Management Development Program Bombay HC refuses to grant Bail to MD of IL&FS Transportation Networks accused of Money Laundering to the tune of INR 27.78 Crores judges t sivananam and bavani subrayan j

[11/11, 08:01] Sekarreporter 1: https://www.taxscan.in/thanthi-trust-is-eligible-for-exemption-under-section-12a-of-the-income-tax-act-1961-madras-high-court/82811/
[11/11, 08:01] Sekarreporter 1: Logo
HEADLINES
World Accountants Day: ICAI Launches Global Management Development Program
Bombay HC refuses to grant Bail to MD of IL&FS Transportation Networks accused of Money Laundering to the tune of INR 27.78 Crores [Read Order]
GST Evasion: CGST Vadodara busts illicit/clandestine Clearance of Goods under guise of Invoices/E-Way Bills issued on the Fake GSTINs
GST applicable on One Time Long Term Lease premium payable by Jinmangal Corporation to Ahmedabad Urban Development Authority: AAR
GST: Pivotal Infrastructure guilty for not passing ITC benefit to Flat Buyers, says NAA [Read Order]
GST Evasion: CGST Delhi South Commissionerate busts syndicate of firms involved in availing Fake ITC
No Service Tax applicable on Income received from Screening of Movies for the Annual Film Festival held by Hindustan Times: CESTAT [Read Order]
Petition in Kerala High Court challenges condition to apply for Refund after filing NIL refund claim in FORM GST RFD-01A/RFD-01 [Read Petition]
Orissa High Court grants bail to person alleged of Economic Offence causing loss of Rs.19 cr revenue to Government Exchequer [Read Order]
Classification of Imported Goods to be done by adjudicating authorities and not the writ courts: Bombay High Court [Read Judgment]

FEATURED | HEADLINES | INCOME TAX | NEWSLETTER | TOP STORIES
Thanthi Trust is eligible for exemption under Section 12A of the Income Tax Act, 1961: Madras High Court [Read judgment]

November 10, 2020 10:45 am| By : Taxscan Team
Thanthi Trust – eligible for exemption – Income Tax Act – Madras High Court – Taxscan

The Madras High Court held that M/s Thanthi Trust is eligible for exemption under Section 12A of the Income Tax Act, 1961.

The assessee, M/s Thanthi Trust is a public charitable Trust, filed an application for registration under Section 12A(a) of the Act before the CIT(A), which granted registration to the assessee Trust under the provision.

The proceedings were initiated by the Director of Income Tax (Exemptions) under Section 12A(a)(iii) of the Act, after noting that the assessee Trust was granted registration by the CIT(A) under Section 12A(a), by order. The DIT(E) examined the records and noted the objects and activities of the assessee Trust.

It was stated in the records that the assessee does not run any school or colleges, though such purposes have been formulated as the main objects of the Trust, the Trust engages itself in the business of publishing the Tamil news business commitments ‘Dina Thanthi’ and also job works for printing are undertaken as business commitments.

The surplus of the income from the business after defraying all the expenses is utilized for donation to another Trust, ‘Aditanar Educational Trust’ only.

The issue raised in this case was whether the Tribunal was right in law in holding that the appellant trust is not eligible for exemption under Section 12A of the Income Tax Act, 1961 without considering the merits of the case in a proper manner.

The division judge bench of Justice T.S. Sivangnam and Justice V. Bhawani Subbaroyan noted that The Tribunal lost sight of the distinction between a claim for registration under Section 12AA and a claim for exemption under Section 11 of the Act.

The Tribunal’s justification would amount to judicial indiscipline for not following the decision of the Hon’ble Supreme Court and this Court in the assessee’s own case, the court added.

The court observed that the DIT(E) failed to adhere to the instructions issued by the CBDT which is binding on the DIT(E). As observed earlier, the recent pandemic has taught very many lessons and one of which is that, mode and method of education cannot be in any manner restricted, but should be given the widest meaning that is possible.