AL RASHEED CHARITABLE SOCIETY,HARYANA vs. DCIT/ACIT(E)(C-2), CHANDIGARH, CHANDIGARH

In the present appeal Assessee has raised the following grounds:

Briefly stated, the assessee society is registered under the Societies Registration Act and is engaged in carrying out activities which, according to the assessee, are religious as well as charitable in nature. The assessee filed an application seeking registration under section 12AB of the Act. During the course of proceedings before the Ld. CIT(E), various documents including the constitutional documents, details of objects and activities and other supporting evidences were furnished.

1 The Ld. CIT(E), however, was not satisfied and rejected the application filed by the assessee. Aggrieved by the said action of the Ld. CIT(E), the assessee has preferred the present appeal before the Tribunal.

Against the order of the Ld. CIT(E) the assessee preferred an appeal before the Tribunal.

During the course of hearing, the Ld. AR submitted that the assessee society is genuinely engaged in religious-cum-charitable activities and all requisite details and documentary evidences were furnished before the Ld. CIT(E). It was contended that the rejection of registration was not justified in the facts and circumstances of the case.

1 The Ld. AR further invited our attention to the subsequent development wherein the very same competent authority, namely the Ld. CIT(E), Chandigarh, has granted registration under section 12AB(1)(b) of the Act to the assessee society. It was submitted that while granting registration, the Department has specifically recorded the nature of activities of the assessee as "Religious cum charitable" and has granted registration as a "Religious Entity". It was further submitted that the subsequent grant of registration itself establishes the genuineness of the activities and the eligibility of the assessee for registration under section 12AB.

Per contra, the Ld. DR relied upon the order of the Ld. CIT(E). However, he fairly did not dispute the fact that subsequently registration under section 12AB(1)(b) has been granted to the assessee society by the Department itself.

We have heard the rival submissions and carefully perused the material available on record.

1 We find that the controversy involved in the present appeal lies in a very narrow compass. The grievance of the assessee relates to denial of registration under section 12AB of the Act. However, during the pendency of the present proceedings, the competent authority has itself granted registration to the assessee society under section 12AB(1)(b) of the Income Tax Act, 1961. 7.2 The registration certificate placed on record reveals that the nature of activities of the assessee has been recorded as "Religious cum charitable". The registration has been granted under section 12AB(1)(b) and the annexure appended thereto specifically records that the registration is being granted as a "Religious Entity". The registration has been granted after considering the application and material available on record. Further, no adverse finding regarding the genuineness of activities of the assessee has been recorded while granting such registration.

3 The subsequent action of the Department in granting registration under section 12AB(1)(b) goes to the root of the controversy and clearly demonstrates that the assessee fulfills the statutory requirements for grant of registration. Once the competent authority itself has accepted the nature of activities of the assessee as religious-cum-charitable and has granted registration under section 12AB, the very basis of the impugned rejection order no longer survives.

4 We further note that the registration certificate categorically recognizes the assessee as a Religious Entity and records that its activities are religious-cum-charitable in nature. The Department having itself accepted the genuineness of the activities and eligibility of the assessee for registration, no useful purpose would be served by sustaining the impugned order.

5 It is pertinent to observe that the assessee society has not applied for approval under section 80G of the Act. Therefore, no issue concerning grant

6 Considering the entirety of facts and circumstances of the case, the subsequent grant of registration by the Department itself, and the recognition accorded to the assessee as a Religious Entity carrying on religious-cum- charitable activities, we are of the considered opinion that the assessee is entitled to registration under section 12AB of the Act.

7 Accordingly, the impugned order passed by the Ld. CIT(E) is set aside.

In the result, the appeal of the assessee stands allowed.

""थ"/ The Respondent 3. आयकर आयु"/ CIT 4. आयकर आयु" (अपील)/ The CIT(A) 5. िवभागीय "ितिनिध, आयकर अपीलीय आिधकरण, च"ीगढ़/ DR, ITAT, CHANDIGARH 6. गाड" फाईल/ Guard File