AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2019 (5) TMI 614
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....ee assailing the order of the CIT(E) has raised before us the following grounds of appeal:- "1 That the order passed u/s 12AA(1)(b)(ii) of the Income Tax Act, 1961 by the Ld. Commissioner Of Income Tax (Exemptions), Chandigarh is against law and facts on the file in as much as he was not justified to arbitrarily reject the grant of registration u/s 12AA of the Income Tax Act, 1961. 2. That he was not justified to hold that the activities claimed to be undertaken by the Appellant do not fall within the definition of Sec. 2(15) of the Income Tax Act, 1961." M/s Anand Isher Amar Charitable Cancer & Multi Specialty Hospital Vs.CIT(Exemptions) 2. Briefly stated, the assessee society which was established on 10.01.2017 had filed an applic....
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....ects of the assessee society. Apart therefrom, it was noticed by him that the financial statements filed by the assessee society also did not reveal any expenditure in the nature of "charitable purpose". Rather, it was observed by the CIT(E) that the only expenditure shown by the assessee was towards payments to architects working group. It was also observed by him that the claim M/s Anand Isher Amar Charitable Cancer & Multi Specialty Hospital Vs.CIT(Exemptions) of the assessee that a doctor had been employed for free medical advice was also not discernible from the financial statements, as no expenditure in context thereto was found to have been incurred. On the basis of his aforesaid observations the CIT(E) observed that as the assessee ....
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.... declined to grant registration under Sec. 12AA to the assessee society. 4. Aggrieved, the assessee society has assailed the order of the CIT(E) passed under Sec. 12AA(1)(b)(ii) of the IT Act in appeal before us. The Ld. Authorised representative (for short 'A.R') for the assessee at the very outset of the hearing of the appeal submitted that the assessee society which was in operation since 10.01.2017 had filed an application in Form 10A seeking registration under Sec. 12A of the IT Act on 17.04.2017. It was submitted by the Ld. A.R that the CIT(E) instead of confining himself to the examination of the objects of the society and the genuineness of its activities at the stage of considering the application of the assessee society for gran....
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....al public irrespective of caste or creed, and to do all such ancillary activities in order to facilitate furtherance of the said object. We find that the CIT(E) had declined the grant of registration to the assessee society for the reason that no charitable activity was found to have been carried out by it. Rather, the fact that the financial statements also did not reveal incurring of any such expenditure by the assessee society towards the aforesaid charitable purpose had also weighed in the mind of the CIT(E). Infact, the CIT(E) had observed that there was also no evidence whatsoever of the preparatory steps that would have been taken by the assessee in furtherance of its aforesaid objects viz. obtaining of necessary permissions/licenses....
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....e genuineness of its activities, he :- (i) Shall pass an order in writing registering the society or institution; (ii) Shall, if he is not so satisfied, pass an order in writing refusing to register the society or institution........" The aforesaid provisions mandates examination of two basic conditions for grant of registration to an assessee under Sec. 12AA viz. (i) examination of objects of the society or institution; and (ii) satisfaction of the registering authority about the genuineness of the activities of the society or institution on the basis of inquiries. In so far, the observation of the CIT(E) that none of the objects specifically mentioned the term "medical relief" as envisaged under Sec. 2(15) of the IT Act is concern....
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....ted all its envisaged activities in the first year itself. It was further observed that Sec. 12AA of the IT Act required satisfaction in respect of the genuineness of the activities of the trust, which includes the activities which the trust is undertaking at present and also which it may contemplate to undertake. Apart therefrom, it was observed by the Hon'ble High Court that sub-section (3) to section 12AA of the IT Act empowered the Commissioner to cancel the registration if the activities of the trust were not carried out in accordance with its objects. 9. In the backdrop of the aforesaid observations of the Hon'ble High Court of Jurisdiction, we are of the considered view that the view taken by the CIT(E) that the envisaged activitie....