Registration u/s 80G(5)(vi) cannot be denied to charitable trust even if it is running some activity that yields profit
Jan 22, 2010 Income Tax Case Laws
As a rule, if the terms of the trust permit its operation ‘for profit’ they become, prima facie, evidence of a purpose falling outside charity. They would indicate the object of profit-making unless and until it is shown that the term of the trust compel the trustee to utilize the profits of business also for charity. This means that the test introduced by the amendment is “Does the purpose of a trust restrict spending the income of a profitable activity exclusively or primarily upon what is `charity’ in law? If the profits must necessarily feed a charitable purpose, under the terms of the trust, the mere fact that the activities of the trust yield profit will not alter the charitable character of trust.”
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Tags: case law, chaitanya, charitable purpose, charity, declaration of trust, deed of rectification, deed of trust, dispensaries, hospitals, learned counsel, medical relief, prasanna trust, prima facie evidence, profitable activity, profits, relevant paragraph, submissions, trustee
MCA’s new mantra: B e a facilitator in corporate growth instead of just another regulator
Nov 4, 2009 Company Law
The Ministry of Corporate Affairs (MCA) wants to shed its stern regulatory image and acquire a gentler, corporate-friendly reputation. The new mantra is to be a facilitator in corporate growth instead of just another regulator. The mantra is now being translated into action. For example, to cut out subjectivity in decisions, MCA has decided that field officers will not conduct any scrutiny of company balance sheets or send notices based on personal judgments or external tips. Scrutiny alerts will be generated in a software-based central risk assessment tool based on historical data of all companies.
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Tags: bank of india, company balance sheets, corporate affairs, foreign exchange management, management act, MCA, personal judgments, prima facie evidence, Registrar of Companies, reserve bank of india, risk assessment tool, securities and exchange board of india
Identification of donor and receipt of gift by cheque not sufficient to prove genuineness of gift
Sep 2, 2009 Income Tax Case Laws
CASE LAW DETAILS
Decided by: HIGH COURT OF PUNJAB AND HARYANA, In The case of: Yash Pal Goel v. Commissioner of Income-tax (Appeals), Chandigarh, Appeal No.: [2009] 181 TAXMAN 175 (PUNJ. & HAR.) , IT APPEAL NO. 389 OF 2008 ( Decided on: January 20, 2009
RELEVENT PARAGRAPH
section 68 of the Income-tax Act, 1961 – Cash credits – Assessment year 1999-2000 – Whether opinion formed by Assessing Officer for not accepting assessee’s explanation as regards sums found credited in books maintained by him constitutes a prima facie evidence against assessee relating to receipt of money, and if assessee fails to rebut said evidence, same can be used against him by holding that it was a receipt of an income nature – Held, yes – Whether where claim of gift is made by assessee, onus lies on him not only to establish identity of person making gift but also his capacity to make a gift, and that it has actually been received as a gift from donor – Held, yes – Whether a simple identification of donor and showing movement of gift amount through banking channels is not sufficient to prove genuineness of a gift – Held, yes
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Tags: books of account, Cash Credit, Gift, income tax act, income tax act 1961, love and affection, prima facie evidence, Section 68, Tax on Gift, unexplained cash credit, Unexplained money