CIT (Exemptions) Vs Society for the Study of Liver Diseases (Punjab and Haryana High Court)
Section 12A Registration Denied as Tribunal Relied Only on Oral Claims of ECHO Project, High Court Remands 12A Registration Dispute After Finding No Proof of Charitable Work, Registration Under Section 12A Cannot Be Based on Unverified Submissions, Rules High Court, Fresh Examination Ordered as Tribunal Granted 12A Relief Without Supporting Documents, Subsequent Registration Not Ground for Earlier 12A Approval, Says High Court
The appeal was filed by the revenue under Section 260A of the Income Tax Act, 1961, challenging the order dated 08.04.2019 passed by the Income Tax Appellate Tribunal, Chandigarh. The dispute concerned the grant of registration under Section 12A of the Act to a society registered under the Societies Registration Act, 1957, operating since 2014.
The society’s stated objectives included treatment of patients with liver disease, promotion and dissemination of knowledge, conducting surveys, organizing conferences and workshops, helping poor patients, accepting donations, publishing scientific material, seeking affiliations, and acquiring property to further its aims.
On 12.02.2016, the society applied to the Commissioner of Income Tax (Exemptions), Chandigarh (CIT(E)) for registration under Section 12A. The Chartered Accountant of the society submitted evidence, including income and expenditure statements. For financial year 2014–2015, total receipts were ₹35,05,000, largely from donations made by pharmaceutical companies, with a small amount from conference registration fees. Expenditure of ₹22,79,078 was incurred on conferences, resulting in a net surplus of ₹10,06,284.
