ALL J&K SCHEDULED CASTES WELFARE ASSOCIATION,JAMMU AND KASHMIR vs. CIT(E), CHANDIGARH, CHANDIGARH

The facts of the case emerging from the records are that the assessee society is registered under the Registrar of Societies, Jammu & Kashmir. The assessee has applied for registration u/s 12A(1)(ac)(iii) on 27.06.2024 before CIT(E), Chandigarh, and in order to verify the genuineness of the activities of the society, various notices were issued from the office of the ld. CIT(E), Chandigarh. It has been observed that the assessee society being registered under the hand of the Registrar of Societies J & K, re-registration of the said society is required as per circular issued by the Registrar, Society & Firms vide Notification No. 34 of 2019 dated 9th Aug., 2019 “Jammu & Kashmir Societies Registration Act, 1998” are required to re-register under the Societies Registration Act, since it is established for charitable, scientific or literary purpose.

In the instant case, it has been observed by the ld. CIT(E), that the non registration of the society under the Societies Registration Act within the State of Jammu & Kashmir violates the provisions of Rule 17A of the Income Tax Rules, 1962, because the registration certification of the Registrar of the Societies is a mandatory document while accompanying the application for registration under the Income Tax Act, 1961 and on the account of the said deficiency, this application for registration has been rejected.

The assessee is before this Tribunal on the grounds contained in the memorandum of appeal. In course of hearing, the ld. AR of the assessee submits a short paper book containing copy of original certificate of registration granted by the Registrar of the Societies, J & K under Act, 1998, and has also submitted a copy of an application filed before the Registrar of the Society, Jammu as evidence of application for re-registration of the society as per the directions contained in the circular issued by the Registrar of Societies & Firms dated 9th Aug., 2019, which is to prove the ongoing charitable activity of the assessee.

The ld. AR submits that till date the re-registration certificate has not been received and the application is still pending before the appropriate authority of the State Government and has declared in the court that they will furnish copy of the re- registration certificate before the ld. CIT(E), Chandigarh, as soon as the same is received.

As such, he prays for remanding the matter back to the files of the ld. CIT(E) with necessary directions.

The ld. DR has no objection if the matter is remanded back to the files of the ld. CIT(E).

We have heard the rival counsel and considered the materials on record and we find that even though an application has been made before the appropriate authority for re-registration of the society, the same is still pending and the said re-registration certificate is a mandatory document which is required to be filed as per the provisions of Rule 17A of the Income Tax Rule, 1962 without which the application for registration u/s 12A(1)(ac)(iii), cannot be proceeded with under Act, 1961. of the AR, we deem it appropriate to remand the matter back to the files of the ld. CIT(E), Chandigarh to consider the application for registration u/s 12A afresh, from the date of receipt of the re-registration certificate to be obtained by the assessee under the Jammu & Kashmir, Societies Registration Act, 1998 as per the circular issued by the Registrar Societies & Firms and to be filed or submitted before the ld. CIT(E).

The assessee is further directed to furnish all necessary documents and submission (including photographs) and other evidences, in order to prove the genuineness of the activities of the societies to the satisfaction of the ld. CIT(E) and to fully co-operate in the registration proceedings for proper disposal of the application.

We have not expressed any opinion on merits and all legal contentions are left open.

In the result, the appeal filed by the assessee is allowed for statistical purpose.

This is an appeal filed against the rejection of an application filed in Form No. 10AB on 28.06.2024 for approval u/s 80G of the Act, 1961 by the ld. ld. CIT(E), Chandigarh, vide order dated 14.12.2024. been remanded back to the ld. CIT(E), for fresh consideration, after receipt of complete set of documents including submissions, consequently, we also remand this matter back to the files of the ld. CIT(E) for fresh consideration for approval u/s 80G, in tandem and in coordination with the application for registration u/s 12A(1)(ac)(iii) of the Act, 1961.

In the result, both the appeals filed by the assessee are allowed for statistical purposes.