TaxTMI 
TaxTMI 
2019 (4) TMI 971
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.... of 2019. 2. The Petitioner is a cooperative society and runs a hospital. The Petitioner had applied for registration under Section 12AA of the Income Tax Act, 1961 ('the Act', for short) in which the question of deemed registration on the ground that the application, after its filing, was not decided for a period of six months, arose. The Income Tax Appellate Tribunal ('ITAT', for short), by an order dated 15/03/2017, held that the Petitioner was entitled to a declaration of deemed registration. In that background, the question of the assessment of the Petitioner's return of income for the Assessment Year 2009­2010 came up for consideration. The Assessing Officer ignored such deemed registration of the Petitioner....
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....d for the exemption under section 11 and 12 of the Act since complete details were filed before the Assessing Officer, which were verified by him. He also pointed out that the details have been looked into by the Assessing Officer at length and no discrepancy has been found in the said details. However, in the interest of justice, we are of the view that the Assessing Officer has failed to consider the conditions of section 11 and 12 of the Act while denying the said exemption to the assessee in all the years. So for the limited purpose of verification, we restore this matter to the file of Assessing Officer who shall verify the expenditure claimed by the assessee as to whether it falls within the scope of section 11 and 12 of the Act and r....
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....ivision Bench of Allahabad High Court in the case of Society for the Promotion of Education Adventure Sport and Conservation of Environment Vs CIT, 261 CTR (All) 167 and not the decision of the Full Bench of the Allahabad High Court in the case of of CIT Vs Muzafar Nagar Development Authority, 372 ITR (ALL)(FB) wherein the decision of the Division Bench of Allahabad was reverted and the Full Bench had held that "non disposal of an application for registration before the expiry of six months as provided u/s 12AA would not result in deemed grant of registration". 8.1 Further, the Hon'ble High Court of Allahabad, Lucknow Bench, vide its decision dated 31.07.2017 in the case of CIT Faizabad Vs Harshit Foundation Sehmalpur Jalalpur ....
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....contemplated by Section 12AA of the Act" and has set aside the Tribunal's order and sent the matter to the Registering Authority i.e. CIT for recording its satisfaction and to pass appropriate order in accordance with law thereunder. The Hon'ble Court has relied upon the following decisions and held that aforesaid decision : a) The Hon'ble Karnataka High Court in the case of Sanjeevamma Hanumanthe Gowda Charitable Trust Vs DIT (Exemptions) (2006) 285 ITR 327 (Karnataka) b) The Hon'ble Allahabad High Court's decision in the case of Fifth Generation Education Society Vs CIT (1990) ITR 634 (Alld) c) The Hon'ble Kerala High Court's decision in the case of Sree Anjaneya Medical Trust Vs CIT ....
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.... Pune has withdrawn the benefit of registration u/s 12AA in the assessee's case for the period subsequent to 23.05.2008 which implies that the assessee is not entitled to the benefit u/s 11 for the year under consideration. 9. In view of above discussed facts and circumstances, it is clear that assessee in spirit is not a charitable society and is working for the benefit of its members in clear violation of Section 13(1)(c) and not working for providing the medical relief to the needy patients at affordable costs. Assessee thus exists for the purpose of profit, as discussed in various para 7.3 above. In light of above discussion and in light of the fact that assessee did not possess registration u/s 12AA during A.Y. 2009­10....
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....on to the Petitioner's claim of exemption under Section 11 and 12 of the Act. The issue of the validity of the registration of the Petitioner under Section 12AA of the Act was not at large before him. 5. Perusal of the order of the Assessing Officer and in particular, the quoted portion thereof, would convince us that the Assessing Officer has travelled far beyond the scope of the inquiries before him and has breached all propriety of judicial discipline. The Assessing Officer has held that the Tribunal was not correct in granting deemed registration to the Petitioner. He has, in fact, criticized the Judgment of the Supreme Court on the ground that such Judgment notes a Division Bench Judgment of the High Court but not a larger Bench....