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2019 (6) TMI 152 - HC - Income TaxRegistration u/s 12AA - the immovable property of the hospital was owned by one of the trustees - one of the trustees, is running clinic in Shri Ujjagar Singh Aulakh Hospital and the trust was created later on 1.4.2015 primarily to arrange funds for the payments to the specialist doctors visiting the hospital - whether ITAT has erred in directing the registration to be accorded instead of reverting it back for re-examination? - HELD THAT:- The Tribunal had noticed that the poor patients were being treated at the hospital and the said fact was supported from the list of the patients and the CIT(E) was not required for further confirmation from the beneficiaries of the trust. During the financial year 2015-16, the trust was at nascent stage having received donations of ₹ 1,12,000/- only and maximum of ₹ 1,03,250/- which had already been utilized for the charitable purposes as was clear from the visiting fees paid to various doctors for giving free consultations/treatments which was not even controverted by the revenue. The trust was created on 1.4.2015 and the application for registration u/s 12AA was filed on 26.9.2016. As further noticed that the assessee does not have much funds at the initial stage to pursue its objects, however, some of the objects, i.e. treatment of poor and weaker sections of the society, irrespective of their caste or creed and religion, were undertaken by the assessee and the reasoning of the CIT (E) that neither the objects seemed to have been pursued nor the activities of the trust got corroborated cannot be considered as logical reasoning. Accordingly, the Tribunal directed the CIT(E) to grant registration to the assessee u/s 12AA No error could be pointed out by learned counsel for the revenue in the findings recorded by the Tribunal which may warrant interference by this Court. No question of law, much less, substantial question of law arise in the appeal. No merit in the appeal, the same is hereby dismissed. Needless to say, it shall be open for the revenue to initiate action under sub-section (3) to Section 12AA for withdrawal/cancellation of the registration granted herein above, in case it comes to the notice of the revenue that the activities undertaken by the assessee are not genuine or are not being carried out in accordance with the objects of the trust or Institution or are not charitable in nature in terms of the provisions of the Act.
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