2022 (5) TMI 883

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.... 77,00,000/- paid by the assessee to Shaheed Baba Nihal Singh Charitable Hospital during the year under consideration. 2. Briefly the facts of the case are that the assessee is a registered society registered under the Societies Registration Act as well as under section 12A of the Income-tax Act, 1961 (the Act). During the year under consideration the assessee has paid a sum of Rs. 77,00,000/- to Shaheed Baba Nihal Singh Charitable Hospital for medical relief and the AO has treated the said payment as the amount covered under section 13(1)(c) read with section 13(3) and has held that it cannot be treated as an application of income under section 11(1) of the Act. As per the AO, the funds of the society have been diverted and transferred ....

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....nate Bench had an occasion to examine the said matter in ITA Nos. 1382/Chd/2018 and 1398/Chd/2018 dated 20.08.2019 and the matter has been set aside to the file of the Ld. CIT(A) to decide afresh after bringing all relevant facts on record. In this regard our reference was drawn to the findings of the Coordinate Bench which contained in para 7 to 10 reads as under:- "7. From the perusal of the orders of the authorities below, it is clear that the disallowance has been made by the AO of the amount of Rs. 51,50,000/- donated by the assessee to its alleged sister concern Shaheed Baba Nihal Singh Charitable Hospital which had utilized the amount for making payment of salaries to its doctors. The fact that the assessee is wholly a relig....