In Brief
This case concerns whether newly registered trusts can obtain registration under section 12AA of the Income Tax Act without having undertaken any activities. The Supreme Court held that a trust is entitled to registration based on its charitable objects and proposed activities, even if no activities have been completed at the time of application. The Commissioner must be satisfied that the trust's objects are genuinely charitable and its proposed activities are genuine and aligned with those objects. The Court distinguished this from cancellation proceedings, where actual activities contrary to the objects must be proven, and clarified that merely failing to spend income on charitable work is different from carrying out activities contrary to the trust's stated objectives.
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