C-Dot Forum Vs CIT (Exemptions) (ITAT Amritsar)
The present appeals arose from the rejection of the assessee society’s application for registration under section 12AB and consequent rejection of approval under section 80G of the Income Tax Act, 1961. The Commissioner of Income Tax (Exemptions), Chandigarh, rejected the application in Form 10AB dated 30 September 2023 on 12 December 2024, holding that the activities of the society were not charitable in nature as defined under section 2(15) of the Act.
This was the second round of proceedings. The earlier rejection dated 20 March 2024 had been set aside by the Tribunal on 9 July 2024 on the ground of violation of principles of natural justice due to lack of proper opportunity, and the matter was remanded for fresh consideration. During the fresh proceedings, the assessee submitted documentary evidence including photographs, financial statements, bank statements, brochures, audit reports, and newspaper clippings for the financial years 2021-22 to 2023-24.
On examination, the CIT(E) observed that the society had received gross receipts from various pharmaceutical companies amounting to approximately ₹40 lakhs over three financial years (₹10 lakhs in FY 2021-22, ₹18.95 lakhs in FY 2022-23, and ₹10.60 lakhs in FY 2023-24). However, the actual charitable expenditure was minimal compared to the total receipts.
