2012 (8) TMI 1044 - AT - Income Tax

Summary

Issues involved: Appeal against the order of the Director of Income-tax(Exemption) rejecting registration under S.12A of the Income-tax Act, 1961.

Summary:
The appeal was filed by the assessee against the order of the Director of Income-tax(Exemption) rejecting the application for registration under S.12A of the Act. The assessee argued that the Director did not consider the amended regulations and the list of newly elected body of the Society, which had been submitted to another Government Authority. After hearing both sides, the Appellate Tribunal found merit in the assessee's argument and set aside the impugned order. The matter was restored to the Director of Income-tax(Exemption) to redecide the issue considering the amended regulations and the newly elected body of the society. The Tribunal directed the Director to pass a speaking order after giving a reasonable opportunity of hearing to the assessee.

Furthermore, the Tribunal noted that the assessee was willing to provide further information to verify unsecured loan creditors and other liabilities. The assessee also agreed to demonstrate that the expenditure incurred by the society was wholly for charitable activities. Taking into account these statements, the Tribunal directed the Director to allow the assessee to furnish all necessary information and evidence to support its case for registration under S.12A of the Act.

In conclusion, the appeal of the assessee was allowed for statistical purposes, and the order was pronounced in court on 10.08.2012.