In a brief but significant order, the Supreme Court on Monday admitted a petition filed by the Commissioner of Income Tax (Exemption), Bhopal, challenging a Chhattisgarh High Court ruling that automatically granted Section 80G benefits to a Jain trust registered under Section 12AA of the Income Tax Act.
The High Court had earlier held that once a trust is registered under Section 12AA which recognizes charitable or religious organizations for tax exemption the same automatically qualifies for the donation benefit under Section 80G. However, the apex court expressed reservations over such a blanket interpretation.
Appearing for the tax department, Additional Solicitor General Raghavendra P. Shankar argued that 12AA registration alone cannot ensure 80G approval since each case must be examined on whether the activity is truly charitable or mainly religious.
The Bench, comprising Justices J.B. Pardiwala and K.V. Viswanathan, noted the contention and observed that such distinctions carry legal weight, especially in cases involving faith-based trusts. After hearing preliminary submissions, the Court condoned the delay, issued notice to the respondent trust, and directed the matter to return in four weeks.
The case now stands open for detailed examination.
