Shree Krishana Medical And Social Welfare Society vs The CIT(Exemptions)

PER MANISH AGARWAL, AM:

These two appeals are filed by the assessee against the orders of the Ld. Commissioner of Income Tax (Exemption), Chandigarh [CIT(E), in short] both dated 02.03.2026 rejecting the approval/registration sought u/s 12AB(1)(b)(ii) and 80G of the Income Tax Act, 1961 (hereinafter referred as ‘the Act’).

First we take the appeal of the assessee rejecting application for registration u/s 12AB(1)(b) of the Act in ITA No.3121/Del/2026.

Briefly stated the facts are that appellant has filed an application for registration u/s 12AB of the Act on 29.09.2025. The Ld. CIT(E) observed that assessee was asked to explain as to why the registration should not be granted as it is running a private Hospital without any signboard reflecting charitable status and charging fee which is more than the nominal fees. The Ld. CIT(E) further observed that no evidence was filed with respect to any charitable activities carried out after year 2022. Since, the assessee has not filed any details with respect to the specific enquiry raised, the application filed for the registration u/s 12AB of the Act was rejected by holding that assessee has failed to discharge the onus casted upon it of proving the charitable nature of its activities.

Before us, the Ld. AR for the assessee submits that appellant society is running a Blood Bank in Rewari, Haryana and also filed its financial statements. It is submitted that the assessee is providing blood to the all section of the society at the rates prescribed by the Government and in case of emergencies even the blood is made available at free of cost to the needy people. Assessee further filed various certificate issued by the authorities where the assessee has organized camps fee of costs and served the society. Ld. AR further filed copy of the Blood Bank donation camp organized by the assessee society to establish the charitable activities carried out and requested that the registration u/s 12AB be granted to the assessee.

On the other hand, Ld. DR vehemently supported the orders of Ld. CIT(E) and submits that the appellant society has failed to discharge the burden casted upon it of proving the charitable nature of the activities carried out by it and in particular the allegation of ld. CIT(E) that it had charged more than nominal fees was not controverted. Ld. CIT DR submits that the secretary of the society, Dr. Anita Yadav was the office bearer of many of the organizations who had issued certificate of appreciation to the assessee society. He thus, requested for the confirmation of the order of ld. CIT(E) rejecting the application for registration u/s 12AB of the Act.

Heard the parties and perused the materials available on record. It is an admitted that the assessee society is running a blood bank in the name of Shri Krishna Blood Bank at Rewari, Haryana which is evident from the financial statements filed wherein only receipts were charges received towards the processing of blood. It is further observed that the processing charges were taken as per the rate prescribed by the Government. The assessee has filed evidences of various charitable activities carried out and certificate issued by various Organizations. It is observed that all such details are for the period prior to year 2022 and only one evidence with respect to the blood donation camp organized on 14^th January, 2025 is placed at PB. It is further observed that before Ld. CIT(E) no explanation was given with respect to the query raised regarding running of private hospital and the amount of fee charged.

Considering the overall facts of the case, we are of the opinion that since the assessee has not filed the requisite information before the ld. CIT(E) to establish the charitable nature of the activities carried out by it of running blood bank and therefore, in the interest of justice, the matter is remanded back to the file of Ld. CIT(A) with directions to provide sufficient opportunities to the assessee to establish that the activities carried out by it are of charitable in nature. With these directions, all the grounds of appeal of the assessee are allowed for statistical purposes.

In the result, the appeal of the assessee is allowed for statistical purposes.

Now coming to the I.T.A No.3122/Del/2026 wherein the registration u/s 80G of the Act was denied as registration u/s 12AB was rejected. Since, we have already remanded the issue of registration u/s 12AB of the Act, therefore, the issue of registration u/s 80G is also remanded back to the file of the Ld. CIT(E) with the directions to decide the same in the light of the disposal of application u/s 12AB of the Act. Accordingly, all the grounds of appeals of the assessee society are allowed for statistical purposes.

In the result, appeal of the assessee is allowed for statistical purposes.

In the final result, the captioned appeals of the assessee in ITA Nos. 3121 & 3122/Del/2026, both are allowed for statistical purposes.