The First Bench, comprising Acting Chief Justice Satish K. Agnihotri and Justice K.K. Sasidharan, directed the Director General of Income Tax( Exemption), New Delhi to issue appropriate instructions to the assessing officers to verify the returns of the assesses who have been given exemption under Section 80G of the IT Act.
The petitioner, while mentioning the names of five trusts, contended that the approval was given for exemption without verifying their activities.
He alleged that the Sri Sankara Bhaktha Jana Sabha Trust, Kanchi Moodoor Archakas Welfare Trust, SSSMM Trust, Sri Jagadguru Trust and Veda Rakshna Samithi were misusing the exemption and the amount collected by way of donations were all used for other activities,which has nothing to do with charity.
The assessing officer would also look into the issue as to whether money received after availing exemption were all used for charitable purposes, the counter said.
The bench then directed the authorities to issue appropriate instructions to the assessing officers to verify the returns of the trusts and to take appropriate action in accordance with provisions of Income Tax Act.