Arya Smaj Vs CIT (Exemption) (ITAT Delhi)
Section 12AA Registration Denial Remanded After Proposed Amendment of Objects: ITAT Delhi Grants Fresh Opportunity
The Delhi Bench of the ITAT set aside the order of the CIT(Exemption) rejecting the assessee’s application for registration under section 12AA and restored the matter for fresh consideration. The CIT(E) had denied registration on the ground that the society, though running schools for several years, did not have “running of schools” expressly mentioned in its objects clause, and therefore its activities were not in accordance with its stated aims.
Before the Tribunal, the assessee submitted that an application for amendment of the Memorandum and bye-laws had already been filed before the competent authority to align the objects with the activities carried out, and the same was pending approval. Considering this development, the ITAT held that the matter required reconsideration after taking into account the amended objects.
The Tribunal accordingly remanded the issue to the CIT(E) with a direction to examine the amended Memorandum and bye-laws and decide the application for registration on merits after granting reasonable opportunity of hearing to the assessee. The appeal was allowed for statistical purposes
FULL TEXT OF THE ORDER OF ITAT DELHI
