M/s.Yodha Samarak Samiti, Jagadhari V. CIT, Panchkula

ITA 422/CHANDI/2010

• Counselvise Citation: [2012] 140 COUNSELVISE.COM (IT) 60875 (ITAT-CHANDIGARH)
• Duration Of Justice: 2 year(s) 1 month(s) 18 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 11-06-2012
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: A
• Next Hearing Date: 24-04-2012
• Assessment Year: misc
• Appeal Filed On: 23-04-2010
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: JYOTI KUMARI
• Keywords: Gift; Charitable institution
• Section: 12A; 12AA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL CHANDIGARH BENCH A, CHANDIGARH BEFORE SHRI T.R. SOOD, ACCOUNTANT MEMBER AND MS. SUSHMA CHOWLA, JUDICIAL MEMBER ITA NO.422/CHD/2010 (UNDER SECTION 12AA(B)) M/S YODHA SAMARAK SAMITI, VS. THE C.I.T., 2 JAIN NAGAR, JAGADHRI. PANCHKULA. PAN: AAQPJ3506N (APPELLANT) (RESPONDENT) APPELLANT BY : SHRI TEJ MOHAN SINGH RESPONDENT BY : SMT.JYOTI KUMARI, CIT DR DATE OF HEARING : 25.04.2012 DATE OF PRONOUNCEMENT : 11.06.2012 O R D E R PER SUSHMA CHOWLA, J.M, : THE ASSESSEE HAS FILED THE PRESENT APPEAL AGAINST T HE ORDER PASSED BY THE COMMISSIONER OF INCOME TAX, PANCHKULA DATED 25.03.2010 UNDER SECTION 12AA (B) OF THE INCOME-TAX ACT (IN SHORT T HE ACT). 2. THE ASSESSEE HAS RAISED THE FOLLOWING GROUNDS OF APPEAL: 1. THAT THE LD. COMMISSIONER OF INCOME TAX HAS ERRED I N LAW AS WELL AS ON FACTS IN REJECTING THE APPLICATION FOR REGISTRAT ION FILED UNDER SECTION 12A OF THE ACT WHICH IS ARBITRARY & UNJUSTIFIED. 2. THAT THE ASSESSEE SOCIETY/SAMITI FULFILS ALL THE CO NDITIONS NECESSARY FOR REGISTRATION AND THE OBJECTIVES FOR WHICH THE S AMITI HAS BEEN CONSTITUTED IS TO UNDERTAKE WHOLLY CHARITABLE ACTIV ITIES AS IS EVIDENT FROM THE BYLAWS OF THE SOCIETY WHICH FAC T HAS NOT BEEN APPRECIATED BY THE LD. COMMISSIONER OF INCOME TAX I N THE CORRECT PERSPECTIVE. 3. THAT THE ORDER OF THE LD. COMMISSIONER OF INCOME TA X IS ERRONEOUS, ARBITRARY, OPPOSED TO LAW AND FACTS OF THE CASE AND IS, THUS, UNTENABLE. 3. THE BRIEF FACTS OF THE CASE ARE THAT THE ASSESSE E SOCIETY IS REGISTERED WITH DISTRICT REGISTRAR OF SOCIETIES, YA MUNA NAGAR ON 27.3.2009. THE PRIMARY OBJECT OF THE SAMITI IS T O SET-UP SUITABLE 2 MEMORIALS TO PERPETUATE THE MEMORY OF NATIONAL WAR HEROES, IN GENERAL ALL OVER INDIA INCLUDING SH. PRITHVI RAJ CH AUHAN, SH. HEM CHAND VIKRAMADITYA & SH. SADASHIV BHAU AND ALSO TO SET UP MUSEUM, LIBRARY AND EXHIBITION, DISPLAY OF WEAPONRY AND OTH ER ANTIQUE ITEMS CONNECTED WITH DEFENCE ACTIVITIES. THE ASSESSEE SOC IETY APPLIED FOR REGISTRATION U/S 12A OF THE INCOME-TAX ACT, 1961 IN FORM NO. 10A ON 01.10.2009. THE COMMISSIONER OF INCOME TAX CALLED FOR A REPORT FROM THE ASSESSING OFFICER AND JCIT, YAMUNA NAGAR ABOUT THE ACTIVITIES OF THE SOCIETY AND ALSO WHETHER IT FULFILLS THE CONDIT IONS LAID DOWN U/S 12AA OF THE ACT. THE REPORT OF THE ASSESSING OFFIC ER IS REPRODUCED UNDER PARA 2.1 AT PAGES 1 AND 2 OF THE ORDER PASSED UNDER SECTION 12AA OF THE ACT. THE CONCLUSION OF THE ASSESSING O FFICER AND THE DCIT, YAMUNA NAGAR WAS THAT THE ACTIVITIES OF THE A PPLICANT SOCIETY WERE NOT GENUINE TOWARDS ACHIEVEMENT OF ITS AIMS AND OBJECTS AND ACCORDINGLY NOT RECOMMENDED FOR GRANT OF REGISTRATI ON U/S 12AA OF THE ACT. THE REPLY OF THE ASSESSEE BEFORE THE COMMISSI ONER OF INCOME TAX IS REPRODUCED UNDER PARA 3.1 AT PAGE 3 OF THE SAID ORDER, IN WHICH IT EXPLAINED THE ACTIVITIES CARRIED ON BY THE ASSESSEE . THE CIT (APPEALS) ON PERUSAL OF THE RECORD WAS OF THE VIEW THAT THE PRIMARY PURPOSE OF THE SOCIETY IS TO BUILD MEMORIALS IN FAVOUR OF THE NATI ONAL HEROES WHO SACRIFICED THEIR LIVES FOR THE HONOUR OF THEIR COUN TRY. THE COMMISSIONER OF INCOME TAX HELD AS UNDER: THE APPLICANT WAS ASKED TO EXPLAIN AS TO HOW ERECTION OF MEMORIALS CAME WITHIN THE SCOPE OF DEFINITION OF 'CHARITABLE PURPOSES'. IN THIS REGARD , A REFERENCE HAS BEEN MADE TO THE CLAUSE REGARDING 'PRESERVATION OF WILD LIFE AND PRESERVATION OF MONUMENTS OR PLACES OR OBJECTS OF ARTISTIC AND HISTORIC INTEREST, AS INSERTED BY FINANCE (2) ACT, 2009 3 W.E.F, 01.04.2009. I DO NOT FIND THE ARGUMENTS ACCEPTABLE AS IN THE PRESENT CASE, SOCIETY'S OBJECT S DO NOT REFER TO PRESERVATION OF MONUMENTS BUT PROVIDE FOR CREATION OF NEW MONUMENTS WHICH DOES NOT FALL WITHIN THE DEFINITION. AS THE DEFINITION IS CLEAR A ND UNAMBIGUOUS, THERE IS NO SCOPE FOR DISCUSSION THAT THE PRESERVATION OF MONUMENTS INCLUDES CREATION OF MONUMENTS. THE SOCIETY'S OBJECTS DO NOT REFER TO TH E MEMORIALS WHICH HAVE ALREADY BEEN BUILT BY THE GOVERNMENT OR THE SITES OF NATIONAL HERITAGES. MOREOVER, IT IS A QUESTION OF DEBATE, DISCUSSION AN D MAY, ALSO LEAD TO POLITICAL CONTROVERSIES ABOUT THE PERSONS IN WHOSE MEMORY MONUMENTS ARE PROPOSED TO BE ERECTED. 4. THE COMMISSIONER OF INCOME TAX PLACING RELIANCE ON THE RATIO LAID DOWN IN KEDIA JATIYA SAHAYAK SABHA & FUND VS. CIT, [49 ITR 74, 81(CAL)] AND IN THE CASE OF MAHAKAUSHAL SHAHEED SAMARK TRUST VS. CIT [140 ITR 795] HELD THAT THE ASSESSEE WAS NOT ELIGIB LE FOR REGISTRATION UNDER SECTION 12AA OF THE ACT. THE COMMISSIONER OF INCOME TAX FURTHER OBSERVED THAT ON THE RECEIPTS ISSUED BY THE ASSESSEE SOCIETY, THE ADDRESSES OF THE DONORS FROM WHOM DONATION HAS BEEN CLAIMED TO BE RECEIVED WERE MISSING AND THUS EVEN THE CORRECTN ESS OF THE ACCOUNTS WERE NOT VERIFIABLE. CONSEQUENTLY THE APPLICATION MOVED BY THE ASSESSEE FOR REGISTRATION UNDER SECTION 12AA OF WAS REJECTED. 5. THE ASSESSEE IS IN APPEAL AGAINST THE ORDER OF T HE COMMISSIONER OF INCOME TAX. 6. THE LEARNED A.R. FOR THE ASSESSEE REFERRED TO TH E AIMS AND OBJECTS OF THE ASSESSEE SOCIETY, PLACED AT PAGES 2 TO 11 OF THE PAPER BOOK AND POINTED OUT THAT IT HAD TWO FOLD OBJECTS F OR CARRYING ON ITS CHARITABLE ACTIVITIES. OUR ATTENTION WAS DRAWN TO THE REPLY FILED BY THE 4 ASSESSEE ON 22.2.2010 PLACED AT PAGES 22 AND 23 OF THE PAPER BOOK IN WHICH THE ASSESSEE EXPLAINED THAT IT WANTED TO SET UP SUITABLE MEMORIALS IN THE MEMORY OF NATIONAL WAR HEROS AND F OR THE PURPOSE WAS HOLDING SEMINARS, MEETINGS, CONFERENCE IN THIS REGARD. THE LEARNED A.R. FOR THE ASSESSEE FURTHER POINTED OUT T HAT IN VIEW OF THE AMENDED DEFINITION OF CHARITABLE PURPOSE WITH RETRO SPECTIVE EFFECT THE PRESERVATION OF MONUMENTS OR PLACES OR OBJECTS OF A RTISTIC OR HISTORIC INTEREST WERE CHARITABLE IN NATURE. THE LEARNED A. R. FOR THE ASSESSEE SUBMITTED THAT RELIANCE BY THE COMMISSIONER OF INCO ME TAX ON THE RATIO LAID DOWN IN KEDIA JATIYA SAHAYAK SABHA & FUND VS. CIT (SUPRA) WAS MISPLACED AS THE OBJECTS OF THE SAID TRUST WER E NOT FOR PARTICULAR COMMUNITY. RELIANCE WAS PLACED ON THE RATIO LAID D OWN BY THE HON'BLE ALLAHABAD HIGH COURT IN FIFTH GENERATION EDUCATION SOCIETY VS. CIT [185 ITR 634(ALL)] 7. THE LEARNED D.R. FOR THE REVENUE IN REPLY POINTE D OUT THAT THE PRIMARY OBJECT OF THE ASSESSEE WAS CONSTRUCTION OF WAR MEMORIALS MAINLY IN THE MEMORY OF MARTYRS AND SUCH ACTIVITIES WERE N OT OF GENERAL PUBLIC UTILITY. THE LEARNED D.R. FOR THE REVENUE FURTHER POINTED OUT THAT THE RELIANCE ON THE MADHYA PRADESH HIGH COURT BY THE CO MMISSIONER OF INCOME TAX WAS DIRECTLY APPLICABLE TO THE FACTS OF THE PRESENT CASE. 8. WE HAVE HEARD THE RIVAL CONTENTIONS AND PERUSED THE RECORD. THE ASSESSEE SOCIETY WAS REGISTERED WITH DISTRICT REGISTRAR OF SOCIETIES, YAMUNA NAGAR ON 27.3.2009. THE ASSESSEE HAD APPLIE D FOR REGISTRATION U/S 12A OF THE INCOME-TAX ACT, 1961 IN FORM NO. 10A ON 01.10.2009. THE MEMORANDUM OF ASSOCIATION OF THE ASSESSEE SOCIE TY IS PLACED AT PAGES 2 TO 11 OF THE PAPER BOOK. THE PRIMARY AIMS AND OBJECTS OF THE ASSESSEE SOCIETY ARE AS UNDER: 5 3. AIMS AND OBJECTS: A) TO SET UP SUITABLE MEMORIALS TO PERPETUATE THE M EMORY OF NATIONAL WAR HEROES IN GENERAL ALL OVER INDIA INCLUDING (I) SHRI PRITHVIRAJ CHAUHAN (II) SHRI HEMCHAND VIKRAMADITYA & SHRI SADASHIV BHAU . B) TO SET UP A' MUSEUM, LIBRARY AND AN EXHIBITION F OR DISPLAY OF THE WEAPONRY AAD OTHER ANTIQUE ITEMS CONNECTED WITH DEF ENCE ACTIVITIES. C) TO CARRY OUT RESEARCH IN THE WARS, TO DERIVE APP ROPRIATE LESSONS FROM THE SUCCESSES/FAILURES OF THE NATIONAL WAR HEROES. TO S ET UP A CENTRE FOR CARRYING OUT RESEARCH IN MARTIAL ARTS, WARFARE AND HISTORY O F THE WARS FOUGHT BY OUR COUNTRY IN GENERAL AND PARTICULARLY IN PANIPAT AND TARAORI AREAS. D) TO SET UP EDUCATIONAL INSTITUTIONS FOR PREPARING YOUTH TO DEVOTE THEMSELVES TO THE SERVICE OF NATION AS TO ENCOURAGE FOR JOINING DEFENCE SERVICES. E) TO ARRANGE SEMINARS, TO HOLD MEETINGS AND CONFER ENCES AND TO ORGANIZE LECTURES, DISCOURSES SYMPOSIUMS, EXHIBITIONS AND FA IRS. F) TO PROMOTE INTEREST IN MILITARY ACTIVITIES AMONG ST THE PUBLIC IN GENERAL AND THE YOUTH IN PARTICULAR. G) TO INCULCATE MORAL, SPIRITUAL, PHYSICAL AND PATR IOTIC SPIRIT IN THE PUBLIC IN GENERAL AND YOUTH IN PARTICULAR, TO MAKE THEM RESPO NSIBLE CITIZENS OF THE COUNTRY AND TO CARRY OUT ACTIVITIES TO DEVELOP SPIRIT OF SA CRIFICE, DEVOTION AND DEDICATION TO THE COUNTRY AMONG THE YOUTH. H) TO ACQUIRE FUNDS, TO ACQUIRE PROPERTY/LAND, TO B UILD SUITABLE STRUCTURES FOR ACHIEVING THE ABOVE OBJECTS. TO ACQUIRE, PURCHASE, ACCEPT AS GIFT OR DONATIONS OR CONTRIBUTIONS; SELL OR DISPOSE OF OR OTHERWISE TRAN SFER TEMPORARILY OR PERMANENTLY, ANY PROPERTY BOTH MOVEABLE AND IMMOVAB LE TO CARRY OUT THE PURPOSES OF THE SAMITI AND FOR THE BENEFIT OF AND I N THE BEST INTEREST OF THE SAMITI. 9. IN ORDER TO ACHIEVE ITS OBJECTS THE ASSESSEE HAD HELD VARIOUS GATHERINGS IN THE ADVANCEMENT OF ITS OBJECTS IN REL ATION TO THE WAR HEROS WHICH ARE REFERRED TO BY THE ASSESSEE IN THE COMMUNICATION SENT TO THE COMMISSIONER OF INCOME TAX, PLACED AT PAGES 18 TO 22 OF THE PAPER BOOK. THE EXPLANATION OF THE ASSESSEE VIS-- VIS ACTIVITIES WAS THAT PRESENTLY IT WAS HOLDING SEMINARS, MEETINGS, C ONFERENCES OF GENERAL PUBLIC WITH LIKE MINDED PERSONS TO HOLD THE SOCIETY ENDEAVOR TO ESTABLISH MARTYRS MEMORIALS OF THE WAR HEROS OF THE HISTORIC BATTLES. 10. THE AMENDED DEFINITION OF CHARITABLE PURPOSE WI THIN THE MEANING OF SECTION 2(15) OF THE ACT REDS AS UNDER: 6 2 ( 15 ) CHARITABLE PURPOSE INCLUDES RELIEF OF THE POOR, EDUCATION, MEDICAL REL IEF, [ PRESERVATION OF ENVIRONMENT (INCLUDING WATERSHEDS, FORESTS AND WILDLIFE) AND PRESERVATION OF MONUMENTS OR PLACES OR OBJECTS OF A RTISTIC OR HISTORIC INTEREST, ] AND THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY: PROVIDED THAT THE ADVANCEMENT OF ANY OTHER OBJECT OF GENERAL PUBLIC UTILITY SHALL NOT BE A CHARITABLE PURPOSE, IF IT INVOLVES THE CARRYIN G ON OF ANY ACTIVITY IN THE NATURE OF TRADE, COMMERCE OR BUSINESS, OR ANY ACTIVITY OF REN DERING ANY SERVICE IN RELATION TO ANY TRADE, COMMERCE OR BUSINESS, FOR A CESS OR FEE OR ANY OTHER CONSIDERATION, IRRESPECTIVE OF THE NATURE OF USE OR APPLICATION, O R RETENTION, OF THE INCOME FROM SUCH ACTIVITY; ] 11. THE FINANCE NO.2 ACT, 2009 WITH RETROSPECTIVE E FFECT FROM 1.4.2009 HAD INSERTED THE PRESERVATION OF ENVIRONM ENT OR PRESERVATION OF MONUMENTS OR PLACES OF OBJECTS OF ARTISTIC OR HI STORIC INTEREST AS PART OF THE DEFINITION OF CHARITABLE PURPOSE WITH IN THE MEANING OF SECTION 2(15) OF THE ACT. THE ABOVE SAID OBJECTS A RE IN ADDITION TO THE OBJECT OF THE ADVANCEMENT OF ANY OTHER OBJECT OF GE NERAL PUBLIC UTILITY, WHICH AS PER SECTION 2(15) OF THE ACT IS FOR CHARIT ABLE PURPOSE. 12. ADMITTEDLY, THE ASSESSEE BEFORE US IS DESIROUS OF CONSTRUCTING MONUMENTS IN THE MEMORY OF WAR HEROS AND ONCE SUCH MONUMENT IS CONSTRUCTED, THE PRESERVATION OF THE SAID MONUMENT WOULD BE CHARITABLE PURPOSE ENTITLING THE ASSESSEE TO FALL WITHIN THE A MENDED DEFINITION ENSHRINED IN SECTION 2(15) OF THE ACT. THE ASSESSE E HAS NOT CONSTRUCTED ANY SUCH WAR MEMORIALS TILL DATE. 13. THE SECOND ACTIVITY CARRIED ON BY THE ASSESSEE AS PER ITS EXPLANATION FILED BEFORE THE COMMISSIONER OF INCOME TAX IS MAKING SUITABLE ENVIRONMENT IN THE SOCIETY BY HOLDING SEMI NARS, MEETING, CONFERENCES OF GENERAL PUBLIC AND LIKE MINDED HELPF UL PERSONS SO THAT IT MAY WITH THE HELP OF SOCIETY ENDEAVOURER TO ESTABLI SH MARTYR MEMORIALS IN THE ABSENCE OF BEFITTING MONUMENTS COMMEMORATING THE WAR HEROS OF THE HISTORICAL BATTLES. LOOKING AT THE AIMS AND O BJECTS OF THE ASSESSEE SOCIETY WE FIND THAT IN ADDITION TO SETTING UP SUIT ABLE MEMORIALS IN THE 7 MEMORY OF NATIONAL WAR HEROS, OTHER OBJECTS OF ASSE SSEE SOCIETY ARE AS UNDER: 3.D) TO SET UP EDUCATIONAL INSTITUTIONS FOR PREPARI NG YOUTH TO DEVOTE THEMSELVES TO THE SERVICE OF NATION AS TO ENCOURAGE FOR JOINING DEFENCE SERVICES. E) TO ARRANGE SEMINARS, TO HOLD MEETINGS AND CONFER ENCES AND TO ORGANIZE LECTURES, DISCOURSES SYMPOSIUMS, EXHIBITIONS AND FA IRS. F) TO PROMOTE INTEREST IN MILITARY ACTIVITIES AMONG ST THE PUBLIC IN GENERAL AND THE YOUTH IN PARTICULAR. G) TO INCULCATE MORAL, SPIRITUAL, PHYSICAL AND PATR IOTIC SPIRIT IN THE PUBLIC IN GENERAL AND YOUTH IN PARTICULAR, TO MAKE THEM RESPO NSIBLE CITIZENS OF THE COUNTRY AND TO CARRY OUT ACTIVITIES TO DEVELOP SPIRIT OF SA CRIFICE, DEVOTION AND DEDICATION TO THE COUNTRY AMONG THE YOUTH. H) TO ACQUIRE FUNDS, TO ACQUIRE PROPERTY/LAND, TO B UILD SUITABLE STRUCTURES FOR ACHIEVING THE ABOVE OBJECTS. TO ACQUIRE, PURCHASE, ACCEPT AS GIFT OR DONATIONS OR CONTRIBUTIONS; SELL OR DISPOSE OF OR OTHERWISE TRAN SFER TEMPORARILY OR PERMANENTLY, ANY PROPERTY BOTH MOVEABLE AND IMMOVAB LE TO CARRY OUT THE PURPOSES OF THE SAMITI AND FOR THE BENEFIT OF AND I N THE BEST INTEREST OF THE SAMITI. I) TO SUPPORT AND RENDER FINANCIAL ASSISTANCE FOR C HARITABLE AND EDUCATIONAL CAUSES TO DESERVING PERSONS AND INSTITUTIONS. SAMI TIS OR SOCIETIES FOR ANY PURPOSE OR PURPOSES WHICH WILL CARRY OUT ALL OR ANY OBJECTS OF THE SOCIETY WHICH ARE RECOGNIZED UNDER SECTION 80-G OF THE INCOME TAX ACT , 1961. 14. THE LIST OF ACTIVITIES CARRIED ON BY THE ASSESS EE IS PLACED AT PAGES 18 TO 21 OF THE PAPER BOOK. THE PERUSAL OF THE ABO VE SAID LIST REFLECTS THAT ONE OF THE OBJECTS OF THE ASSESSEE SOCIETY THO UGH IS FOR THE CONSTRUCTION OF SUITABLE MEMORIALS IN THE MEMORY OF WAR HEROS BUT THE OTHER OBJECTS TO BE TAKEN UP BY THE ASSESSEE SOCIET Y BY WAY OF SETTING UP EDUCATIONAL INSTITUTIONS, ARRANGING SEMINARS, HOLDI NG MEETINGS/CONFERENCES AND TO ORGANIZE LECTURE EXHIBI TION ETC., AND FURTHER TO INCULCATE MORAL, SPIRITUAL, PHYSICAL AND PATRIOT IC SPIRIT IN THE PUBLIC IN GENERAL AND YOUTH IN PARTICULAR. THE LIST OF OTHER AIMS AND OBJECTS OF ASSESSEE SOCIETY REFLECT THE NATURE OF ADVANCEMENT OF OTHER OBJECTS OF GENERAL PUBLIC UTILITY. WHERE THE ASSESSEE SOCIETY WAS CARRYING ON THE ACTIVITIES IN THE ADVANCEMENT OF ANY OTHER OBJECT O F GENERAL PUBLIC UTILITY, THE SAME BEING CHARITABLE IN NATURE, FALLS WITHIN THE DEFINITION OF 8 SECTION 2(15) OF THE ACT. IN VIEW THEREOF, WHERE T HE ASSESSEE IS CARRYING ON THE CHARITABLE ACTIVITIES, THE ACTIVITIES OF THE ASSESSEE ARE TO BE HELD AS CHARITABLE IN NATURE. CONSEQUENTLY, THE ASSESSE E IS ENTITLED TO THE BENEFIT OF REGISTRATION UNDER SECTION 12AA OF THE A CT. ACCORDINGLY, WE DIRECT THE COMMISSIONER OF INCOME TAX TO PASS CONSE QUENTIAL ORDER GRANTING REGISTRATION TO ASSESSEE SOCIETY UNDER SEC TION 12A OF THE ACT. THE RELIANCE OF THE LEARNED D.R. FOR THE REVENUE ON THE RATIO LAID DOWN IN KEDIA JATIYA SAHAYAK SABHA & FUND (SUPRA) IS MIS PLACED. 15. SECOND PLEA OF COMMISSIONER OF INCOME TAX VIS- -VIS IN RELATION TO THE RECEIPTS ISSUED TO THE DONORS CANNOT BE FORM ED THE BASIS FOR REJECTION OF REGISTRATION TO ASSESSEE SOCIETY UNDER SECTION 12AA OF THE ACT. THE SAID ISSUE IS TO BE SEEN BY THE ASSESSING OFFICER WHILE COMPUTING INCOME IN THE HANDS OF THE ASSESSEE. IN VIEW THEREOF, WE REVERSE THE ORDER OF THE COMMISSIONER OF INCOME TAX ON THIS ACCOUNT AND DIRECT HIM TO PASS THE CONSEQUENTIAL ORDER GRANTING REGISTRATION TO THE ASSESSEE UNDER SECTION 12AA OF THE ACT. THE GROUND S OF APPEAL RAISED BY THE ASSESSEE ARE ALLOWED. 16. IN THE RESULT, THE APPEAL OF THE ASSESSEE IS AL LOWED. ORDER PRONOUNCED IN THE OPEN COURT ON 11 TH DAY OF JUNE, 2012. SD/- SD/- (T.R. SOOD) (SUSHMA CHOWLA) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED : 11 TH JUNE, 2012 *RATI* COPY TO: THE APPELLANT/THE RESPONDENT/THE CIT(A)/TH E CIT/THE DR. ASSISTANT REGISTRAR, ITAT, CHANDIGARH