Society's religious character not bar to registration under Section 12A; Commissioner cannot demand removal of religious objects

The HC held that a society's religious character does not bar registration under section 12A and the Commissioner erred in insisting that religious objects be removed from the bye-laws before consideration. Registration at this stage serves only to establish identity to claim benefits under sections 11 and 12; entitlement to exemptions will be determined later. The Commissioner may not require proof that income will not be spent for religious purposes as a precondition. Religious-nature objections need not be complied with; technical objections may be rectified. The respondent was directed to decide the application within one month and the writ petition was allowed.

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Issues involved:
The petitioner, a society registered under the Tamil Nadu Societies Registration Act, 1975, filed a petition seeking a writ of mandamus to direct registration under section 12A of the Income-tax Act, 1961.

Summary:
The petitioner claimed to be a society for religious and charitable purposes, involved in running orphanages, training widows, and unemployed individuals, as well as establishing churches. The society was formed in 1985 and applied for registration under section 12A in 1986. The first respondent raised objections related to the belated application, religious nature of the society, investment modes, dissolution provisions, and amendment approval requirements. The Commissioner's view was that due to the religious nature, the society could not claim exemptions under relevant sections of the Act.

The petitioner argued that section 12A is procedural and does not require consideration of the society's nature for registration. The High Court held that the Commissioner overstepped by insisting on amending bye-laws to exclude religious aspects before registration. Referring to a precedent, the court emphasized that at the registration stage, only compliance with application requirements and charitable nature assessment is necessary, not examination of income application. The court directed the Commissioner to process the application without requiring changes related to religious aspects and to dispose of it within a month.

In conclusion, the court allowed the writ petition, ruling in favor of the petitioner, stating that objections related to the religious nature need not be complied with, and directed the Commissioner to process the application promptly.

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