Supreme Court Remands Charitable Registration Appeals for Reconsideration in Light of Ahmedabad Urban Development Authority Ruling.
09 October 2025
Income Tax >> Tax Laws
The Supreme Court excused the delay and allowed leave in the associated appeals by the Revenue against Allahabad High Court orders, which had rejected the appeals of the Revenue under Section 260A of the Income Tax Act regarding the assesse's right to charitable registration benefits.
The Court also observed that the High Court's challenged orders were succinct and did not have factual discussion on how previous precedents would apply. As the legal position on what is a "charitable purpose" has now been settled by a three-judge bench in Assistant Commissioner of Income Tax (Exemptions) vs. Ahmedabad Urban Development Authority (2023), the Supreme Court directed that the case be re-heard by the High Court in accordance with that binding decision.
Consequently, the Supreme Court granted the appeals, set aside the earlier orders of the High Court, and remitted the cases back for fresh adjudication in terms of settled law. It made it clear that no opinion was formed on the merits of the claims of either side, and all pending applications stood disposed of.
Section 260A, Income Tax Act - 1961