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2022 (1) TMI 990 - ITAT CHANDIGARHExemption u/s 11 - Reject the application for grant of registration u/s. 12AA - HELD THAT:- The assessee in all fairness if it expects the grant of Registration on a subsequent date is necessarily required to ensure that the necessary criteria is fully met in law and spirit. Infact the adjudicating authority expecting that their orders are respected and complied with per force expect self corrective actions as maintainable in law. Applications seeking Registration on same set of facts may warrant dismissal on this ground, however, where the taxpayer takes necessary steps to comply with the requirements, the application in a subsequent year cannot be outrightly dismissed. There is no bar to a taxpayer to ensure that he complies with the requirements of law on facts and then files a fresh application which has been done. CIT-DR was specifically required to bring to our notice any statutory bar or legal impediment. No provision of law supporting the view or any decision was brought to our notice by the Revenue. Considering the facts and the law, we hold that dismissal of the assessee's application on this ground per-se is contrary to the legal position as we understand. It is seen that the ld. CIT(Exemption) takes note of the fact that the assessee claims that its operations have started from 27.12.2020, however, he fails to consider the copy of the Balance Sheet which was stated to have been filed before the said Authority and shown to us. The said document demonstrates that expenditure for building a capital asset as claimed had started. The expenditure was for building a hospital needs verification on facts. Since filing of the Balance Sheet by itself may not be sufficient to fully demonstrate this claim and the facts need to be considered fully and correctly, accordingly, we set aside the impugned order back to the file of the CIT(E) directing the assessee to place full facts on record qua the alleged stated construction activity of a hospital in Bhopal alongwith all necessary approvals/permissions sought from the appropriate Regulatory Authorities required for setting up a hospital. CIT(E) shall consider all necessary evidences filed and if need be, call forth for further supporting documentation and thereafter, shall pass an order in accordance with law after considering the assessee. Said order was pronounced in the presence of the parties via Webex. Appeal of the assessee is allowed for statistical purposes.
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