Gram Disha Trust vs. CIT (Exemption)

Parties Involved

Facts Summary

Gram Disha Trust filed an application for registration under section 12A(1)(ac)(ii) of the Income Tax Act, 1961. The Commissioner of Income Tax (Exemption) issued a questionnaire for additional details and documents. Upon review, the Commissioner noted that the Trust had given a loan of Rs. 7,50,841/- to Jaivik Haat Private Limited (JHPL) and invested Rs. 2,55,000/- in its equity, which violated sections 13(3) and 11(5) of the Act. The Commissioner rejected the Trust's application for registration and cancelled the provisional registration granted earlier. The Trust appealed against this decision.…

Legal Issues

• 1. Whether the Trust violated the provisions of sections 13(3) and 11(5) of the Income Tax Act, 1961?
• 2. Whether the Commissioner was justified in rejecting the Trust's application for registration?

Judgment Outcome

Decided in favour of Assessee.

Precedents Relied Upon

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