2024 (1) TMI 858

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....se, the learned Commissioner of Income Tax (Exemption) erred in rejecting Appellant application filed u/s 12AA of the Income Tax Act. 2. On the facts and circumstances of the case, the learned Commissioner (Exemption) erred in his findings that the religious objects are not eligible for registration Income Tax u/s 12A of the Income Tax Act. 3. On the facts and circumstances of the case, the learned Commissioner of Income Tax (Exemption) erroneously concluded the following, while rejecting Appellant application filed u/s 12AA of the Income Tax Act: a) The 70% of donation received in cash and alleged that it is violation of section 80G (5D) when the section provides, donation paid cash above Rs 2000 is not eligible ....

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....neness of the activities of the trust or institution cannot be established'. Ld. Counsel for the assessee has also filed numerous documents before the Tribunal for admission of additional evidence under Rules-29 of the Rules and submitted that the documents produced by the appellant will suffice the requirements in support of the assessee for grant of registration u/s 12AA of the Act, therefore, sought for remanding to the file of Ld. PCIT(E). 3. Per contra, the Ld. DR vehemently objected the submission made by the Ld. AR and contended that the order of the CIT(E) requires no interference as the assessee is conducting activities of selling the medicines and the assessee is not entitled to get the registration u/s 12AA of the Act. Further....

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....lso produced the financials for the period ending on 31/03/2019. The Hon'ble Supreme Court in the case of ACIT(E) vs. Ahmedabad Urban Development Authority [2022] 449 ITR 1 (SC) laid down the ratio as under: "A.1. It is clarified that an assesses advancing general public utility cannot engage itself in any trade commerce or business or provide service in relation thereto for any consideration (cess, or fee or any other consideration); A.2 However, in the course of achieving the object of general public utility, the concerned trust, society, on other such organization, can carry on trade commerce or business or provide services in relation thereto for consideration, provided that (i) the activities of trade, commerce or bus....