9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (12) TMI 200 - AT - Income TaxExemption u/s 11 - Application for Registration u/s 12AA denied - only reason for rejecting application u/s 12AA of assessee was on basis of land, on which hospital has been constructed by M/s ASPAM Foundation - as submitted assessee was not having sufficient fund and M/s ASPAM Foundation spent approximately 85% of its receipts which was utilised for construction of hospital building on land owned by assessee - Held that - ASPAM Foundation claimed exemption in their return of income, whereas, land has been provided by assessee, who has not claimed any expenditure on account of construction activities. Thus in our considered opinion M/s ASPAM Foundation helped in achieving social objective of assessee. Further in respect of land, we observe from paper book that the litigation against 76 people has attained finality vide order dated 12.10.99 passed by Civil Judge (J. Division) Hissar). CIT(E) does not dispute M/s ASPAM Foundation to be charitable trust. Assessee during year under consideration constructed Satsangh Bhavan and Temple which has not been disputed by Ld. CIT(E). These forms part of balance sheet as on 31/03/15 placed. Thus in our considered opinion assessee has achieved its objective of trust through M/s ASPAM Foundation. Merely because a business group and Directors of company are members of society, does not dilute nature of society being a trust. We therefore are of considered opinion that, assessee deserves to be granted registration under section 12 AA of the Act. We accordingly set aside this issue back to Ld.CIT(A) for granting registration to assessee. - Decided in favour of assessee.
Issues Involved:
1. Rejection of registration under section 12AA of the Income Tax Act, 1961. 2. Rejection of registration under section 80G(5)(vi) of the Income Tax Act, 1961. Issue 1: Rejection of Registration under Section 12AA: The appeal was filed against the rejection of registration under section 12AA of the Income Tax Act, 1961. The assessee, a society, applied for registration under section 12A of the Act. The Commissioner observed that the aims and objectives of the society were general in nature and did not connote any specific activity. Further, there were discrepancies regarding the property ownership and construction of a hospital. The Commissioner rejected the registration under section 12AA and also under section 80G(5)(vi) of the Act. The assessee contended that the hospital was constructed by another society, M/s ASPAM Foundation, on the land owned by the assessee. The society did not claim any expenditure for the construction. The tribunal observed that M/s ASPAM Foundation claimed exemption for the hospital activities, while the land was provided by the assessee. The tribunal found that the society had achieved its objectives through M/s ASPAM Foundation and deserved registration under section 12AA of the Act. The issue was set aside for further consideration by the Commissioner. Issue 2: Rejection of Registration under Section 80G(5)(vi): The appeal also involved the rejection of registration under section 80G(5)(vi) of the Income Tax Act, 1961. Since the rejection of registration under section 12AA was set aside, this appeal became consequential. The tribunal directed the Commissioner to allow the application of the assessee under section 80G(5)(vi) as per law. Consequently, the ground raised by the assessee in this appeal was allowed. In conclusion, both appeals filed by the assessee were allowed, and the orders for rejection of registration under sections 12AA and 80G(5)(vi) were set aside for further consideration. The tribunal emphasized the role of M/s ASPAM Foundation in achieving the social objectives of the society and granted relief to the assessee based on the provided explanations and documentary evidence.
|
