Tribunal grants relief to assessee, sets aside registration rejection under Income Tax Act

The tribunal allowed both appeals filed by the assessee, setting aside the orders for rejection of registration under sections 12AA and 80G(5)(vi) of the Income Tax Act, 1961. The tribunal recognized the role of M/s ASPAM Foundation in fulfilling the social objectives of the society and granted relief to the assessee based on the explanations and documentary evidence provided. The matter was remanded for further consideration by the Commissioner.

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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.

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