Grant accounting is essential for NGOs, focusing on managing donor funds through structured processes that ensure compliance. Unlike traditional accounting, it rigorously checks if funds were used as intended and reported accurately. Key steps entail setting up grants as cost centres, tracking budgets, and generating donor reports. This practice strengthens relationships with donors, enhances decision-making, reduces compliance risks, and improves funding opportunities. NGO f

The ITAT clarified that under section 12AB, cancellation of a charitable trust's registration requires proof of non-genuine or non-charitable activities. In the case of Raya Naik Memorial Gowshala Trust, the ITAT found insufficient evidence to support the Commissioner's claims, restoring the trust's registration and emphasizing that registration proceedings differ from assessment procedures.

In the case of ITO (Exemptions) v. Indian Rugby Football Union, the ITAT upheld the Commissioner’s decision to allow a salary of ₹46.50 lakhs to Mr. Naseer Hussain, emphasizing his extensive experience and responsibilities. The Tribunal noted that past appeals did not contest similar disallowances, affirming that the remuneration was justified and not excessive. Consequently, it ruled that the exemption under section 11 should not be denied, dismissing the Revenue's appeal.

The ITAT Delhi ruled that a trade promotion body, the Federation of European Business in India, cannot be denied registration under Section 12A of the Income-tax Act as its activities promote general public utility. The organization, a non-profit under the Companies Act, aimed to enhance trade relations between the EU and Indian authorities, which the Tribunal recognized as charitable activities. The Commissioner of Income-tax (Exemptions) had previously rejected its applicat