Appeal granted, Tribunal orders registration under section 12AA with conditions.

The appeal filed by the Assessee Society was allowed, and the Tribunal directed the Ld. CIT(E) to grant registration u/s 12AA to the Applicant Society, with the liberty to impose conditions or withdraw/cancel registration in case of future discrepancies or breaches of the Act.

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Issues:
1. Rejection of application for registration u/s 12A of the Income Tax Act, 1961 by the Ld. CIT(Exemptions).
2. Dispute regarding the genuineness of the activities of the Applicant Society and its classification under "charitable purposes."
3. Allegation of lack of response to queries and denial of registration based on commercial principles by the Ld. CIT(E).

Analysis:

Issue 1: Rejection of Application for Registration u/s 12A
The appeal was filed by the Assessee Society against the order dated 25.10.2017, where the Ld. CIT(Exemptions) rejected the Application for grant of registration u/s 12A of the Act. The Applicant Society had applied for registration on 28/04/2017. The rejection was primarily based on the failure of the Applicant Society to submit replies to queries raised by the Ld. CIT(E) and the absence of any request for adjournment. The Ld. CIT(E) held that the genuineness of the activities could not be established, and the society's activities were deemed to be purely on commercial principles with profit motives.

Issue 2: Dispute Regarding Genuineness of Activities
The Applicant Society contended that they had responded to the queries raised by the Ld. CIT(E) and provided detailed clarifications. The Applicant Society submitted evidence regarding their association with PMKVY-NSDC and the rationale for payments exceeding Rs. 50,000 in the bank account. The reply of the Applicant Society demonstrated compliance with the queries raised, indicating the genuineness of their activities. The Applicant Society argued that the Ld. CIT(E) had not pointed out any defects in the aims and objects of the society, nor doubted the genuineness of the activities. Therefore, it was held that the Applicant Society was carrying out its activities as per the specified aims and objects in the MOA.

Issue 3: Allegation of Lack of Response and Denial Based on Commercial Principles
The Ld. CIT(E) rejected the application citing lack of response to queries and absence of requests for adjournment. However, the Appellant argued that they had indeed responded to the queries and provided necessary clarifications. The Tribunal found that the Ld. CIT(E)'s observation regarding the lack of response was contrary to the facts and material available on record. The Tribunal directed the Ld. CIT(E) to grant registration u/s 12AA to the Applicant Society, emphasizing that the society met the requirements of having genuine activities aligned with its stated aims and objects.

In conclusion, the appeal filed by the Assessee Society was allowed, and the Tribunal directed the Ld. CIT(E) to grant registration u/s 12AA to the Applicant Society, with the liberty to impose conditions or withdraw/cancel registration in case of future discrepancies or breaches of the Act.

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