AI Structured Summary
Not yet generated for this judgment
Judgment
PER ANUBHAV SHARMA, JM:
This appeal is preferred by the assessee against the order dated 19.09.2024 of the Commissioner of Income-tax (Exemptions), Chandigarh, rejecting the application of the assessee for approval u/s 80G(5)(iii) of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’).
On hearing both the sides, we find that the impugned order has been passed alleging that the objects mentioned in the Memorandum of Association have objectives which fall under the Explanation 3 to section 80G(5) of the Act as religious activities are being conducted. The case of the assessee is that when the Memorandum of Association of the Society was prepared without any legal advice, certain general clauses as are usually mentioned in the Memorandum of Association were incorporated while the assessee is not engaging in any religious activities and the activities primarily are for giving relief to poor by way of medical relief and the objectives are of general public utility.
We are of the considered view that the statute provides for making application in Form 10AB and if the assessee claims that inadvertently it was mentioned that religious-cum-charitable activities were being performed while actually no religious activity were being carried out, then, on facts, the ld.CIT(E) should examine the issue and merely because of mentioning anything in the Memorandum of Association alone tax authorities should not deny registration if otherwise, assessee establishes its incorporation and existence is for charitable activities only. Thus, we are inclined to allow the appeal for statistical purposes and the issue on merits is restored to the files of CIT(E) to give a fresh opportunity of hearing to the assessee to establish fulfillment of the conditions for grant of registration u/s 80G(5) of the Act. The appeal is allowed for statistical purposes.