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TMI BlogUpholding Equality: HC Strikes Down Discriminatory Circular on Charitable Trust ApprovalsX X X X Extracts X X X X X X X X Extracts X X X X ..... uments Presented Petitioners' Arguments The petitioners, representing various charitable trusts, argued that the impugned circular issued by the respondents, which failed to extend the due date for making applications for approval u/s 80G(5) for new trusts, was arbitrary and violative of Article 14 of the Constitution (right to equality). They contended that: The classification made by the respondents between existing and new trusts in granting the extension of time was unreasonable and lacked any intelligible differentia. The denial of approval u/s 80G(5) would discourage potential donors from contributing to the trusts, jeopardizing their very existence. Once the respondents decided to extend the time, the petitioners acquired a veste ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sts regarding the approval u/s 80G(5). The differential treatment was not based on any substantial distinction pertinent to the object of the circular, and the discrimination was artificial. The impugned clause (ii) of Circular No. 6 of 2023, which excluded new trusts from the extension for approval u/s 80G(5), was arbitrary and violative of Article 14 of the Constitution , and therefore, ultra vires the Constitution. Analysis and Decision by the Court The court held that the classification made by the respondents in granting the extension of time for filing applications for approval u/s 80G(5) between existing and new trusts was unreasonable. The court found no intelligible differentia or rational nexus between the classification and the o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ional South Indian River Interlinking Agriculturist Association - 2021 (11) TMI 1188 - Supreme Court Comprehensive Summary The High Court, in this judgement, struck down clause 5(ii) of Circular No. 6 of 2023 issued by the Central Board of Direct Taxes (CBDT) as arbitrary and violative of Article 14 of the Constitution . The impugned clause failed to extend the due date for making applications for approval u/s 80G(5) of the Income-Tax Act, 1961 , for newly established charitable trusts, while granting such an extension to existing trusts. The court found that the classification made by the respondents (tax authorities) between existing and new trusts in granting the extension of time lacked any intelligible differentia or rational nexus wit ..... X X X X Extracts X X X X X X X X Extracts X X X X
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