In Brief
The Supreme Court addressed whether a newly-formed trust must have already conducted charitable activities before applying for tax registration under the Income Tax Act, 1961. The trust in question had applied for registration but had not yet undertaken any activities or spent income on charitable work. The Court held that while the statute does not require pre-existing activities, the Commissioner may consider both actual and proposed activities in assessing whether the trust's charitable objects are genuine. The Commissioner may refuse registration if satisfied that the trust has not demonstrated genuine charitable intent through either actual or proposed activities. The appeal was dismissed, leaving the Commissioner discretion to refuse registration based on the facts."
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