Date of Order: August 25, 2021
The case revolves around the appeal filed by Shree 1008 Munisuvrath Thrithankar Samosharan against the decision of the Commissioner of Income-tax (Exemption) denying registration under Section 12A of the Income Tax Act. The denial was based on the appellant’s failure to file income tax returns for previous assessment years.
The appellant, a religious organization focused on daily worship of Jain Lord and societal welfare activities such as opening schools and charitable hospitals, applied for Section 12A registration to gain tax exemptions. Despite their social contributions, the CIT (E)’s denial was strictly based on administrative compliance failures.
The appellant’s counsel argued that non-filing of tax returns should not preclude the granting of registration if the organization’s objectives and activities are charitable and genuine. This perspective was supported by precedents such as Shri Shirdi Sai Darbar Charitable Trust v. CIT, which emphasized that the genuineness of activities and charitable nature of objectives should be the primary considerations for registration under Section 12A.
The Tribunal, acknowledging the charitable activities and objectives of the appellant, criticized the CIT (E) for focusing solely on the non-filing of returns. It highlighted that such administrative lapses could be remedied without affecting the registration status, as long as the organization’s charitable nature and genuine activities are evident. Consequently, the Tribunal directed the CIT (E) to reconsider the registration application in accordance with the law.
The appeal was allowed, and the case was remanded back to the CIT (E) for a lawful reconsideration, focusing on the organization’s charitable objectives and genuine activities rather than administrative compliance issues. This case sets a significant precedent for other charitable organizations facing similar administrative challenges.
Appeal Against Denial of Section 12A Registration for Shree 1008 Munisuvrath Thrithankar Samosharan
Manage the increasing number of hearings effortlessly by leveraging the legal AI revolution We are India's Leading revolutionary AI-powered legal platform where you can get enough insights into top cases and judgements.
Research Platform