Human Welfare Foundation Vs DCIT (Exemptions) (ITAT Delhi)
ITAT Delhi held that cancellation of registration granted under section 12A of the Income Tax Act not justified since assessee society never intended to restrict the benefits to a particular religious community and the beneficiaries includes all the sections of the society irrespective of their casts and creed.
Facts- This is an appeal filed by the assessee against the order of Commissioner of Income Tax (Exemptions), New Delhi [CIT(E)] dated 28.06.2023 for cancellation of registration granted u/s 12A and u/s 12AB(4) of the Income Tax Act, 1961 (the Act).
Conclusion- Held that assessee society is providing education, medical facility, relief to poor as defined in section 2(15) of the Act which has not been doubted by the Ld. CIT(E) who merely for the reason that major beneficiaries are from a particular religious community has cancelled the registration, which is contrary to the facts of the present case as discussed above. The assessee society never intended to restrict the benefits to a particular religious community and the beneficiaries includes all the sections of the society irrespective of their casts and creed and, therefore, the action of the Ld. CIT(E) in withdrawing registration granted u/s 12A vide order dated 29.05.2009 w.e.f. AY 2018-19 and further registration granted in 12A(1)(ac)(i) of the Act w.e.f. AY 2022-23 is not in accordance with law. Therefore, the order of the Ld. CIT(E) cancelling the registrations is set aside and registrations granted to the assessee earlier u/s 12A and later vide registration dated 23.09.2021 u/s 12A(1)(ac)(i) of the Act are restored.
