Supreme Foundation vs. Income Tax Officer

Parties Involved

Facts Summary

The assessee, Supreme Foundation, is a trust registered under section 12A and 80G of the Income Tax Act, 1961. The trust received a donation of Rs. 2,83,50,000/- from Supreme Industries Ltd. as part of its Corporate Social Responsibility (CSR) activities. The trust applied Rs. 2,74,18,599/- of the total receipts, creating a surplus of Rs. 9,31,401/-. The Income Tax Officer (appellant) contested the assessee's claim that the donation was for a non-corpus fund, arguing it was a corpus fund donation. The Commissioner of Income Tax (Appeals) (CIT(A)) allowed the assessee's appeal, finding the donation to be general in nature and the expenses genuine. The appellant filed an appeal against the CIT(A)'s order.…

Legal Issues

• 1. Whether the CIT(A) was justified in treating the donation as general in nature.
• 2. Whether the CIT(A) was right in allowing the claim of expenses.
• 3. Whether the CIT(A) was right in allowing relief on subsequent evidence.

Judgment Outcome

Decided in favour of Partly Assessee / Partly Revenue.

Precedents Relied Upon

Similar Judgements

• L&T Finance Limited vs. DCIT, Circle-5(1), Kolkata

  Kolkata bench

• Fluor Daniel India Private Limited vs. DCIT, Circle 7 (1)

  Delhi Bench ‘H’ benchAY 2020-21Partly Allowed

• Jay Chemical Industries Pvt. Ltd. vs. PCIT, Ahmedabad-1

  Ahmedabad bench

• Antelopous Selen Energy Limited vs. Deputy Commissioner of Income Tax

  Delhi bench

• McKinsey Global Capabilities & Services Pvt. Ltd. vs CIT(A)/NFAC, Delhi

  Delhi Bench 'E', New Delhi benchAY 2018-19Allowed

• DCIT New Delhi vs. FIS Global Business Solutions India Private Limited