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TMI Blog2022 (5) TMI 776X X X X Extracts X X X X X X X X Extracts X X X X ..... ants in terms of agreement per se does not mean that the assessee is executing work-contracts. The grant may be lump sum or based on some agreed factor in the agreement like number of charitable activities undertaken. But to say that if the grant is in terms of the agreement, it is automatically a consideration for work-contract, would be fallacious. We observe that all of the four points taken into account by the Ld. CIT(E) are not sufficient enough to demonstrate any problem in the objects or activities of the assessee. We also observe that the order passed by the Ld. CIT(E) nowhere raises any objection on the nature and characteristics of the objects or activities pursued or undertaken by the assessee. CIT(E) has nowhere observed i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... registration u/s 12A of the Act. On 05.07.2019, the Ld. CIT(E) issued notice calling for Memorandum of Association and certain clarifications, which were supplied by the assessee. Thereafter on 20.08.2019 and 30.08.2019, the representatives of the assessee also appeared before the Ld. CIT(E) and made submissions. However, the Ld. CIT(E) was not satisfied with the submissions of assessee and rejected assessee s application vide order dated 30.08.2019, by observing as under in Para No. 3 and 4: 3. There is an entity called as Share USA which is situated in USA. The assessee explained that assessee submits its budget proposal to Share USA and based on that Share USA sends them the funds. The assessee explains most of the funds receives ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... us. By means of various grounds taken in Form No. 36, the assessee has claimed that Ld. CIT(E) has wrongly rejected the assessee s application for grant of registration u/s 12A. 5. Before us, the Ld. DR repeated the findings made by Ld. CIT(E) in Para Nos. 3 4 of his order, reproduced above. Analysing those findings, the Ld. DR pushed four points, viz. (i) the assessee receives most of the funds from a USA based entity called Share USA ; (ii) the assessee s office is claimed to be situated in the premise of a medical college located in Medchal Mandal, Rangareddy District, run by Share Medical Care , but the assessee has not produced any document to demonstrate that the said medical college has granted a permission to the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nstitution and the genuineness of its activities, he- (i) shall pass an order in writing registering the trust or institution; (ii) shall, if he is not so satisfied, pass an order in writing refusing to register the trust or institution, and a copy of such order shall be sent to the applicant: 8. A careful examination of clause (1)(b)(ii) of section 12AA, cited above, clearly indicates that the Ld. CIT(E) shall refuse registration only if he is not satisfied about the objects and the genuineness of the activities of the institution. A perusal of the order passed by the Ld. CIT(E) demonstrates that the Ld. CIT(E) has refused registration on the premise of four points, discussed earlier, but none of those points ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) has stated that Mr. Madhumohan Venkat Katikineni, office bearer of the assessee, is receiving salary from Share Medical Care and therefore genuineness of the activity is in doubt. With respect to this observation, we find that the assessee has mentioned in the Ground No. 2(c) of the Form No. 36 This is factually incorrect as Dr. Madhu Mohan is USA Citizen settled in America and has neither received any salary nor he is an employee of M/s Share Medical Care . Fourthly, the Ld. CIT(E) has observed that the assessee has received grants from Share USA , Centre for disease Control USA and Other entities in terms of agreements entered with them and hence the assessee is involved in execution of work-contract. We are unable to accept thi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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