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2022 (5) TMI 776 - ITAT HYDERABADExemption u/s 11 - grant of registration u/s 12A - HELD THAT:- We find that the assessee has mentioned in the Ground of the Form No. 36 “This is factually incorrect as Dr. Madhu Mohan is USA Citizen settled in America and has neither received any salary nor he is an employee of M/s Share Medical Care”. Fourthly, CIT(E) has observed that the assessee has received grants from “Share USA”, “Centre for disease Control USA” and “Other entities” in terms of agreements entered with them and hence the assessee is involved in execution of work-contract. We are unable to accept this reasoning too because receipt of grants in terms of agreement per se does not mean that the assessee is executing work-contracts. The grant may be lump sum or based on some agreed factor in the agreement like number of charitable activities undertaken. But to say that if the grant is in terms of the agreement, it is automatically a consideration for work-contract, would be fallacious. We observe that all of the four points taken into account by the Ld. CIT(E) are not sufficient enough to demonstrate any problem in the objects or activities of the assessee. We also observe that the order passed by the Ld. CIT(E) nowhere raises any objection on the nature and characteristics of the objects or activities pursued or undertaken by the assessee. CIT(E) has nowhere observed in his order that any of the object or activity undertaken by the assessee is ingenuine or against the prescription of section 2(15) of the act. Therefore the refusal of the registration by Ld. CIT(E) is not on a sustainable ground. Being so, the Ld. CIT(E) has wrongly rejected the application of the assessee. We direct the Ld. CIT(E) to grant the registration as applied for by the assessee. Appeal of assessee allowed.
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