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2020 (7) TMI 171 - ITAT DELHIExemption u/s 11 - approved/notified institution for the purpose of section 10(23) - charitable within the meaning of section 2(15) - declining the registration u/s 12AA - exemption / approval u/s 80G - Bar Council of Delhi / Body of Advocates - HELD THAT:- Hon’ble Delhi High Court in case of DIT vs. Foundation of Ophthalmic & Optometry Research Education Centre [2012 (8) TMI 777 - DELHI HIGH COURT] has held to the extent that even if there is no commencement of charitable activities, registration u/s 12AA of the Act cannot be denied because the statute does not prohibit or enjoin the Commissioner from registering a trust solely based upon its objects without any activity in case of a newly registered trust. We are of the considered view that the CIT(E) has erred in declining the registration u/s 12AA of the Act on the ground that financials of FY 2018-19 have not been furnished by the appellant. Cursory findings returned by the ld. CIT (E) in the impugned order that, “the provisions of section 11 to 13 specifically section 12AA are not applicable to such organisation or institution”, is not correct interpretation of law as CIT vs. Bar Council of Maharashtra [1978 (8) TMI 14 - BOMBAY HIGH COURT] held that two provisions viz. section 11 & section 10(23A) are not mutually exclusive but operated under different circumstances. So, merely on the basis of the fact that income of the appellant exempted u/s 10(23A) is not a bar to claim deduction in assessment u/s 11 of the Act, as such income is to be excluded u/s 11. Appellant had furnished financial of FYs 2016-17 & 2017-18 but the ld. CIT (E), without making any adverse findings on the same, proceeded to reject the registration on the ground that financials of FY 2018-19 have not been furnished. Thought it is not a requirement of law to furnish the financials as required by the ld. CIT (E) the appellant has come up with argument that now the financials of FY 2018-19 are available and they are ready to furnish the same. What has been discussed in the preceding paras, we are of the considered view that the appellant being engaged in safeguarding the rights, privileges and interest of the advocates, its dominating purpose is the advancement of general public utility within the meaning of section 2(15) of the Act, as such, genuineness of its activities and object of charitable purpose is proved, thus entitled for registration u/s 12AA and consequent exemption u/s 80G. Appeal filed by the appellant is allowed directing the ld. CIT (E) to provide registration u/s 12AA and consequent exemption u/s 80G of the Act to the appellant.
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