Shalimar Bagh Samaj Seva Samiti vs CIT(Exemption)

Parties Involved

Facts Summary

The assessee, Shalimar Bagh Samaj Seva Samiti, a charitable society registered under section 12A of the Income Tax Act, 1961, applied for registration under section 80G of the Act. The Commissioner of Income Tax (Exemption), Delhi rejected the application on the grounds that the assessee failed to satisfy the genuineness of the charitable nature of its activities. The assessee provided medicines at concessional rates to the poor, earning a gross margin of 6.77% on the sale of medicines. The CIT(E) noted that this margin was not nominal and that the assessee had not provided complete details to establish the genuineness of its charitable activities.…

Legal Issues

• 1. Whether the assessee has satisfied the genuineness of the charitable nature of its activities.

Judgment Outcome

Decided in favour of Assessee.

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