2016 (4) TMI 1237 - AT - Income Tax

Grant of registration u/s 12A - Held that - Admittedly the assessee s income is exempt u/s 10(23C)(iiiae), as is evident from the assessment order for AY 2013-14. Further, assessee has been allowed exemption u/s 11 in assessment year 1990-91 also, as noted earlier. From these facts it is evident that there is no quarrel as regards charitable activities being carried on by assessee. Ld. Commissioner s observation that assessee has not complied with the information sought for is not correct, more particularly because assessee has filed all the informations before the ITO, Head Quarters (Exemptions), which are contained in the paper book filed by assessee. Commissioner referring to Rule 17A concluded that assessee had not furnished original MOA, which requirement can be dispensed with after assessee has filed certified copies of original MOA and registration certificate. Ld. Commissioner has not at all referred to the certified documents furnished by assessee. Under such circumstances, we are of the considered opinion that the registration was wrongly denied to assessee and, therefore, we direct for grant of registration u/s 12A to the assessee. - Assessee s appeal is allowed.

Summary

Issues:
- Appeal against denial of registration u/s 12A
- Compliance with Rule 17A of Income-tax Rules

Analysis:
The appeal before the Appellate Tribunal ITAT Delhi involved the denial of registration u/s 12A to the assessee by the Director of Income-tax (Exemptions), New Delhi. The Director had rejected the registration application primarily because the assessee had not furnished required details and original documents as per Rule 17A of the Income-tax Rules. The assessee, a society registered under the Societies Registration Act, 1860, had applied for registration u/s 12A but was denied by the Director. The counsel for the assessee contested the denial, stating that all necessary details were submitted and highlighted the charitable nature of the trust's activities. The counsel also pointed out that certified copies of the required documents were provided as per the proviso to Rule 17A.

Upon reviewing the submissions, the Tribunal noted that the assessee's income was exempt u/s 10(23C)(iiiae) and had previously been granted exemption u/s 11. It was observed that the assessee had indeed provided all the necessary information to the ITO, Head Quarters (Exemptions), as contained in the submitted paper book. The Tribunal highlighted confirmations from doctors, financial statements, and income tax returns filed by the assessee in the paper book. Rule 17A of the Income-tax Rules was discussed, emphasizing the provision allowing for certified copies in lieu of original documents.

The Tribunal found that the registration was wrongly denied to the assessee as the Director had not considered the certified documents furnished by the assessee, which met the requirements of Rule 17A. Therefore, the Tribunal directed the grant of registration u/s 12A to the assessee, allowing the appeal. The order was pronounced in open court on 21-04-2016, with the Tribunal ruling in favor of the assessee based on the compliance with the relevant rules and the charitable nature of the trust's activities.