INDIAN SOCIETY OF ANAESTHESIOLOGISTS DELHI BRANCH,DELHI vs. WARD EXEMPTION 1(2), DELHI, DELHI

Both captioned appeals filed by the assessee are having common issues, therefore, both appeals are decided by a common order for the sake of convenience.

First we take appeal of the assessee in ITA No.812/Del/2026 for assessment Year 2026-27. ITA No.812/DEL/2026 [Assessment Year: 2026-27]

Brief facts of the case are that the assessee is a charitable medical organization registered u/s Society Registration Act in terms of its Memorandum of Association placed at pages 57 to 69 of the Paper Book. The main objects of the society are as under:- 1. The name of the Society-The society shall be known as the “INDIAN SOCIETY OF ANAESTHESIOLOGISTS, DELHI BRANCH' 2. Registered office of the society shall be located at 190, Ground Floor (Back Portion), Gautam Nagar, New Delhi-110049 aid as such place(s) in the union territory of Delhi/NER as decided from time to time by the management committee. 3. The Aims and Objectives of the Society (i) To associate together in one corporate body all reputable and registered medical men and women practicing in the science of Anaesthesiology. (ii) To-promote the advancement of medical Specialty of Anaestheology, (iii) To edit and publish a News Bulletin incorporating the activities of the society and Current issues and Controversies concerning the science of Anaesthesiology. (iv) To promote awareness in the public regarding the profession of Anaesthesiology and protect the public against unqualified practitioners of Anaesthesiology. (v) To encourage scientific research and experimental work on anaesthetic problems. (vii) To hold scientific discussions and read papers on Anaesthesiology. (viii) To watch and advise on legislations affecting Anaesthesiology.

As per assessee, its activities are fallen under the category of medical relief and education and of general public utility. The assessee has organized workshops, CMEs and conferences, public awareness and medical relief activities as defined u/s 2(15) of the Act. The assessee filed an application for grant of registration u/s 12(1)(ac)(iii) of the Act in terms of Form 10AB dated 22.03.2025. Ld. CIT(E) after seeking various details from the assessee has doubted the dissolution clause of the assessee and further held that the assessee society is working for the profits and not carried out any charitable activity. Ld.

Aggrieved by the order of ld. CIT(E), the assessee is in appeal before the Tribunal by taking various Grounds of appeal mentioned in the appeal memo.

Ground of appeal Nos. 1 & 3 taken by the assessee challenging the rejection of registration u/s 12A on the ground that the evidences filed by the assessee were not examined thus, is the violation of principal of natural justice. Ld.AR further submits that appellant’s society has dissolution clause which reads as under:- ARTICLE-XVII Dissolution: If the Society needs to be dissolved, is shall be dissolved, it shall be dissolved as per provision laid down under section 13 and 14 of the Societies Registration Act of 1860, as applicable to the Union Territory of Delhi. Any number not less than three fifth of the total member of the Society may determine that shall be dissolved and there upon the Society may determine that shall be dissolved and there upon the Society shall be dissolved forth with or at such time than agreed upon. If upon the dissolution there shall remain after the satisfaction of all its debts and liabilities and group whatever the same shall be decided by the member of Society in à general meeting by the votes of not less then 3/5 of the members present personally. All the provisions of the Societies Registration Act, 1860 (21 of 1860) will apply to the Society.”

Ld.AR for the assessee further submits that dissolution clause is for the benefit of the society. Ld. CIT(E) has held that the dissolution clause is contrary to the facts that the assets remained will be distributed at the will of the members. He further submits that all the activities carried out are charitable in nature and further all the objects of charitable purposes where the assessee has carried out education activities by organizing conferences etc. Ld.AR submits

On the other hand, ld. CIT DR for the Revenue vehemently supported the order of ld. CIT(E) and submits that assessee has not carried out charitable activities and its receipts are majorly from the advertisements and sponsorship charges which are of the commercial in nature. Therefore, ld. CIT(E) has rejected the registration of application which order deserves to be uphold.

Heard the contention of both the parties at length and perused the material available on record. In the instant case, the primary objection raised by ld. CIT(E) is with respect to the Dissolution clause given in Memorandum of Association. From the perusal of the dissolution clause as reproduced herein above, it is observed that there was a condition that on 3/4th [three-fourth] majority, the society could be dissolved and distribution of residual remained after satisfying all types of liabilities will be decided in the General Body Meeting of the society by votes of note less than 3/5th [three-fifths] of the members present. This alone cannot be the basis for rejection of the registration u/s 12AB of the Act. Reliance is placed on the judgment of Hon’ble Bombay High Court in the case of The Chamber of Tax Consultants vs CIT(Exemption) & Ors. in Writ Petition (L) No.-7587 of 2026 dated 09.03.2026. It is further observed that ld. CIT(E) has objected to the activities

Considering the overall circumstances and in the larger interest of justice, we set aside the order of ld. CIT(E) and remitted back to the file of ld. CIT(E) with the directions to decide the application of the assessee after examining the genuineness of the activities being charitable in nature based on the information and details provided by the assessee. Needless to say that the assessee be allowed sufficient opportunity of being heard. With these directions, Ground of appeal Nos. 1 to 3 raised by the assessee are allowed for statistical purposes.

Since we have allowed Grounds of appeal Nos. 1 to 3 raised by the assessee for statistical purses and set aside the order of ld. CIT(E) and direct to pass the fresh order therefore, other Grounds of appeal are not adjudicated.

In the result, appeal of the assessee is allowed for statistical purposes.

Now we take appeal of the assessee in ITA No.813/Del/2026 for Assessment Year 2026-27. ITA No.813/DEL/2026 [Assessment Year: 2026-27]

Ground of appeal Nos. 1 to 11 raised by the assessee are with respect to rejection of registration application filed u/s 80G of the Act.

Since we have already set aside the order of ld. CIT(E) of rejecting the registration u/s 12A of the Act therefore, the order of rejection of registration u/s 80G of the Act is set aside and remanded back to the file of ld. CIT(E) to re- consider the application of the assessee in terms of directions given while deciding the appeal for the registration u/s 12A of the Act. Accordingly, all Grounds of appeal Nos. 1 to 11 raised by the assessee are allowed for statistical purposes.

In the result, appeal of the assessee is allowed for statistical purposes

In the final result, both appeals of the assessee in ITA Nos.812 & 813/Del/2026 for Assessment Year 2026-27, are allowed for statistical purposes.