Delay beyond Limitation by CIT(E): Deemed Section 12AA Registration allowed

CIT Vs Gettwell Health and Education Samiti (Rajasthan High Court)

Rajasthan High Court has dismissed an appeal filed by the Income Tax Department (Revenue) against Gettwell Health and Education Samiti, a society operating a hospital in Sikar. The court upheld a previous ruling by the Income Tax Appellate Tribunal (ITAT), Jaipur, which had allowed the society’s application for registration under Section 12AA of the Income Tax Act, 1961, thereby granting it charitable status.

The case centered on whether Gettwell Health and Education Samiti, a society registered in 2008 with the primary objective of providing medical facilities, met the criteria for charitable institution registration, which exempts certain incomes from tax. The society runs “Gettwell Hospital & Research Centre” in Sikar.

A Protracted Battle for Registration

Gettwell Health and Education Samiti initially applied for Section 12AA registration on January 19, 2010. However, the Commissioner of Income Tax (Exemptions) [CIT(E)] rejected this application on July 23, 2010. The society appealed to the ITAT, which, on July 22, 2011, set aside the CIT(E)’s order. The Tribunal found that the CIT(E) had failed to communicate the assessing officer’s report to the assessee and did not provide an adequate opportunity for response. Consequently, the matter was remanded back to the CIT(E) with directions to confront the assessee with all adverse material before making a fresh decision.