Tribunal grants registration and exemption under Income Tax Act, emphasizing charitable and religious nature of society's objects.

The Tribunal allowed ITA No. 2469/Del/2017, directing registration under Section 12AA, and ITA No. 2468/Del/2017 for reconsideration of approval under Section 80G. The delay in filing appeals was condoned, and the rejection of registration under Section 12A was set aside, emphasizing the charitable and religious nature of the society's objects. The decision highlighted the importance of separate considerations for registration and exemptions under the Income Tax Act.

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Issues:
1. Delay in filing appeals for registration under Section 12A and approval under Section 80G of the Income Tax Act, 1961.
2. Rejection of application for registration under Section 12A of the Act.
3. Rejection of application for approval under Section 80G of the Act.

Issue 1: Delay in Filing Appeals
The appeals were filed with a delay of 137 days, and the assessee sought condonation of the delay. The reason given for the delay was conflicting views among society members, leading to the formation of a sub-committee to decide on the course of action. The delay was condoned, and the appeals were admitted for adjudication on merits.

Issue 2: Rejection of Application for Registration under Section 12A
The rejection was based on observations that the society's activities were not transparent, including transferring funds to a sister concern without proper registration, claiming wrongful exemptions, and lack of clarity on fund utilization. The assessee contended that all objects were charitable and religious, fulfilling statutory conditions for registration. The Tribunal found the society's objects to be charitable and religious, and the rejection was not based on the nature of the objects. The Tribunal held that a wrong claim of exemption did not affect registration under Section 12AA, and the source of investment in construction was adequately explained. The Tribunal set aside the rejection and directed the grant of registration under Section 12AA.

Issue 3: Rejection of Application for Approval under Section 80G
The rejection was linked to the denial of registration under Section 12AA. As the Tribunal directed the grant of registration under Section 12AA, it remanded the matter back to the CIT for reconsideration of the application for approval under Section 80G. The Tribunal emphasized providing the assessee with a reasonable opportunity for a fresh decision. The appeal was allowed for statistical purposes.

In conclusion, the Tribunal allowed ITA No. 2469/Del/2017, directing registration under Section 12AA, and ITA No. 2468/Del/2017 for reconsideration of approval under Section 80G. The delay in filing appeals was condoned, and the rejection of registration under Section 12A was set aside, emphasizing the charitable and religious nature of the society's objects. The decision highlighted the importance of separate considerations for registration and exemptions under the Income Tax Act.

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