2009 (7) TMI 1262 - HC - Income Tax

Summary

Issues: Whether a charitable institution is entitled to registration u/s 12-AA of the Income Tax Act, 1961.

Judgment Summary:

The High Court of Punjab and Haryana addressed the issue of whether a charitable institution, specifically an Improvement Trust constituted under the Punjab Town Improvement Act, 1922, is eligible for registration u/s 12-AA of the Income Tax Act, 1961. The department had previously filed an appeal against a similar matter where it was observed that the Trust was not engaged in activities of general welfare as required by the Act. However, the respondent's counsel argued that a previous judgment favored the petitioner, and the petitioner should be granted relief. The petitioner's counsel failed to counter this legal position. Consequently, the Court allowed the writ petition, quashed the demand notice and assessment order, and ruled in favor of the petitioner based on the precedent set by the previous judgment in a related case.

In conclusion, the High Court granted the relief sought by the petitioner, quashed the demand notice and assessment order, and upheld the petitioner's entitlement to registration u/s 12-AA of the Income Tax Act, 1961.