CUTICON TN 2019, CHENNAI V. CIT, EXEMPTIONS, CHENNAI

ITA 3287/CHNY/2019

AI Insights

The case involves an appeal by Cuticon TN 2019 against the rejection of their registration application under section 12AA of the Income Tax Act by the Commissioner of Income Tax (Exemptions), Chennai. The appellant, an association focused on dermatology, venerology, and leprology conferences, contested the CIT(E)'s decision, which was based on the grounds that the association did not meet the 'legal obligation' criteria as per Explanation-1 below Section 13(9) and that it was anticipating a surplus. The tribunal considered various judicial precedents and decided to set aside the CIT(E)'s order, remanding the matter for a fresh evaluation.

• Counselvise Citation: [2022] 140 COUNSELVISE.COM (IT) 133960 (ITAT-CHENNAI)
• Duration Of Justice: 13 year(s) 1 month(s) 9 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 07-12-2022
• Appeal Filed By: Assessee
• Order Result: AllowedAllowed
• Bench Allotted: B
• Next Hearing Date: 07-12-2022
• Assessment Year: misc
• Appeal Filed On: 28-10-2009
• Other Referred Cases: Queen's Educational Society vs. CIT, New Noble Educational Society vs. CIT, ACIT vs. Ahmedabad Urban Development Authority
• Laws Referred To: Section 12AA of the Income Tax Act, Explanation-1 below Section 13(9) of the Income Tax Act
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Keywords: Set aside
• Section: 12AA

Judgement Text

आयकर अपीलीय अिधकरण ‘बी’ ायपीठ चे ई म । IN THE INCOME TAX APPELLATE TRIBUNAL ‘B’ BENCH, CHENNAI माननीय +ी महावीर िसंह, उपा12 एवं माननीय +ी मनोज कु मार अ7वाल ,लेखा सद: के सम2। BEFORE HON’BLE SHRI MAHAVIR SINGH, VICE PRESIDENT AND HON’BLE SHRI MANOJ KUMAR AGGARWAL, AM आयकर अपील सं./ ITA No.3287/Chny/2019 Cuticon TN 2019 No.223, L Block, 21 st Street, Annanagar East, Chennai – 600 102. बनाम / V s . CIT(Exemptions) Chennai. थायी लेखा सं. /जीआइ आर सं. /P AN / G I R No . AAE AC -02 95-Q (अपीलाथ /Appellant) : ( थ / Respondent) अपीलाथ की ओरसे/ Appellant by : Shri K. Ravi (Advocate)-Ld. AR थ की ओरसे/Respondent by : Shri D. Hema Bhupal (JCIT) –Ld. DR सुनवाई की तारीख/Date of Hearing : 08-12-2022 घोषणा की तारीख /Date of Pronouncement : 08-12-2022 आदेश / O R D E R Manoj Kumar Aggarwal (Accountant Member) 1. Aggrieved by rejection of registration application u/s 12AA of the Act by learned Commissioner of Income Tax (Exemption), Chennai [CIT(E)] vide order dated 30-09-2019, the assessee is in further appeal before us. The assessee is an association of persons with the object of conducting conference for the purpose of disseminating knowledge of dermatology, Venerology and Leprology. The Ld. CIT(E) rejected registration, inter-alia, on the ground that the assessee would not fall within the term ‘legal obligation as contained in Explanation-1 below Sec.13(9). Further, the assessee was anticipating surplus. ITA No.3287/Chny/2019 - 2 - 2. The Ld. AR, Shri K. Ravi, pleaded that it would not be necessary that the assessee applying for registration must necessarily be a trust and legal obligation could be derived from a contract, legislation or other operation of law. Reliance has been placed on various judicial decisions to support the same. Further, mere generation of surplus would not disentitle any entity to get registration as held by Hon’ble Supreme Court in the case of Queen’s Educational Society vs. CIT 8 SCC 47. The Ld. Sr. DR, on the other hand, submitted that legal position has substantially been altered after the recent decision of Hon’ble Supreme Court in bunch of appeals titled as New Noble Educational Society (143 Taxmann.com 276) as well as in ACIT vs. Ahmedabad Urban Development Authority (144 Taxmann.com 78). During hearing, it was point of agreement that considering the recent decisions of Hon’ble Apex Court on the subject, the matter may be set aside to Ld. CIT(E) for reconsideration. 3. In view of the foregoing, it is deem it fit to set aside the impugned order and the matter of registration is restored back to the file of Ld. CIT(E) for re-consideration in the light of cited judicial decisions. All the issues are kept open. Needless to add that the assessee would be provided with adequate opportunity of hearing to substantiate its case. 4. The appeal stand allowed for statistical purposes. Order pronounced on 08 th December, 2022. Sd/- (MAHAVIR SINGH) उपा12 /VICE PRESIDENT Sd/- (MANOJ KUMAR AGGARWAL) लेखा सद: / ACCOUNTANT MEMBER ITA No.3287/Chny/2019 - 3 - चे*ई / Chennai; िदनांक / Dated : 08-12-2022 EDN/- आदेश की Tितिलिप अ7ेिषत/Copy of the Order forwarded to : 1. अपीलाथ /Appellant 2. यथ /Respondent 3. आयकर आय ु त (अपील)/CIT(A) 4. आयकर आय ु त/CIT 5. वभागीय त न ध/DR 6. गाड फाईल/GF