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TMI Blog2019 (9) TMI 897X X X X Extracts X X X X X X X X Extracts X X X X ..... y finding on the issue. Further the issue of change in constitution of the governing body not being accepted by the Registrar of Society, the contention of the society that there was no such requirement in the Act also, needs to be looked into. Regarding the finding of excess currency/cash being deposited in bank during demonetization period, the assessee has contended that the same has nothing to do with its own income and could in fact be attributed to people who were disposing off their demonetized currency to charitable societies during this period. We find that all the issues raised by the Ld.CIT(E) need to be examined and investigated further before arriving at the conclusion vis a vis the eligibility of the applicant society to grant of registration u/s 12AA of the Act, in view of the above contentions raised by the Ld.Counsel for the society. We, therefore, consider it fit to restore the issue back to the Ld.CIT(E) to consider the grant of registration afresh after giving due opportunity of hearing to the applicant society. Appeal of the applicant society is allowed for statistical purposes. - ITA No.1247/Chd/2017 - - - Dated:- 31-7-2019 - Smt. Diva Singh, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , which indicated that it indulged in demonetizing currency during the said period which in turn was a clear pointer to the activities of the applicant not being transparent. 3) There was a change in the governing body of the society through a resolution passed, but no evidence in respect of the acceptance of the change by the Registrar of the society had been provided by the applicant. The relevant findings of the Ld.CIT(E) at paras 6 to 9 of his order are as under: 6. On the fixed date Sh. Sameer Garg, Chartered Accountant appeared and filed written submission in. response to above noted queries. The counsel was requested to submit the financial statement for the F.Y. 2016-17 which was submitted by the applicant on 15.06.2017 through E-Mail. The financial statements submitted by the applicant reflect the following:- F.Y. Gross receipt Net Surplus Fixed Assets Cash Bank Additions 2013-14 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... further exacerbate the matter. The said findings are clear pointers to the activities of the applicant not being transparent. Certainly a substantial chunk of donations/ income of the applicant has been kept away from the banking channels till the denominations in vogue made illegal. This also belies trust reposed in the society, claiming ostensibly to the charitable, by its donors and also the intended beneficiaries. 8. There is a change of Governing body of the society through a resolution. However, no evidence in respect of acceptance of the change in composition by the Registrar of Societies has been provided by the applicant. Mere furnishing of information to the Registrar does not convey his acceptance of the change. Further, the documents on records reveal that the entire Governing council has been replaced with a new one. in the absence of any evidence to the effect that the change of the Governing council had been accepted by the Registrar of the Societies, it is unclear whether the said action amounted to dissolution of the society or is a simple takeover by new members. 9. In view of the above the activities of the society cannot be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... act and, therefore, merely because the quantum of cash deposit in bank during this period was higher as compared to other months, cannot lead to the inference that the applicant societies activities were not transparent. As for the finding of the Ld.CI T(E) that the applicant society had not submitted the evidence of the acceptance of change in composition of its governing body, by the Registrar of Society, the Ld.Counsel for the society contended that the only requirement as per law was intimating the Registrar of the change, which was duly done by the society. The Ld.Counsel for the society contended that the Societies Registration Act did not require any acceptance by the Registrar to such change and mere intimation was sufficient. 6. The Ld. DR, on the other hand, relied upon the order of the Ld.CIT(E). But at the same time Ld. DR stated that the matter could be restored back to the Ld.CI T(E) for adjudication afresh in the light of the facts now brought to the fore by the Ld.Counsel for the assessee since the same needed to be verified also. 7. We have heard the rival contentions and carefully perused the order of the Ld.CIT(E).Admittedly, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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