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2020 (3) TMI 1114

..... back to the heirs of the donors, which is not as per law - HELD THAT:- Assessee-society is running an old age home in 03 acres of land situated in Vizianagaram. Assessee is providing paying guest accommodation for the needy. Paying guest accommodation is said to be provided to those who are admitted by their kids or nearby relatives. The expenditure for running the organization is from interest income earned on bank deposits held by it. The deposits held by the organization are said to be out of funds donated by the public. Enquiries revealed that some donors initially donated each ₹ 1.00 lakh to the “Prema Samajam‟ as one time donation for the benefit of it and the donations so collected were deposited in bank accounts he .....

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..... g activity is carried out by the assessee. Under these facts and circumstances of the case, we are of the opinion that without there being any doubt, the assessee is running its society in charitable lines and is deserves to be granted registration u/sec. 12A of the Act. CIT(E) rejected the 12A registration on the ground that clause mentioned in the gift deed is not in accordance with law is concerned; we find that the above reason given by the ld.CIT(E) is not correct in rejecting the 12A registration to the assessee. CIT(E) not at all examined what the assessee‟s activities whether assessee actually carrying charitable activities are not. Without doing so, the ld. CIT(E) picked up an irrelevant clause in the gift deed and rejected 1 .....

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..... the heirs of the donors, which is not as per law. Accordingly, the ld.CIT(E) is of the opinion that it is not a fit case to grant registration u/sec. 12AA and rejected registration. 3. On appeal before us, ld.AR has submitted that assessee is running old age home, accommodating the orphans, providing free education to the poor and also providing services to the affected persons with leprosy and submitted that assessee is existed only to do the charity activities and therefore without examining the same, the ld.CIT(E) dismissed the application by considering the irrelevant clause in the gift deed and prayed that 12A registration may be granted. 4. On the other hand, ld.DR relied on the report submitted by the ITO (Exemptions), dated 05/03/20 .....

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..... t present, there are around 50 destitutes taking shelter in it. Apart from this, the assessee is providing paying guest accommodation for the needy. Paying guest accommodation is said to be provided to those who are admitted by their kids or nearby relatives. The expenditure for running the organization is from interest income earned on bank deposits held by it. The deposits held by the organization are said to be out of funds donated by the public. Enquiries revealed that some donors initially donated each ₹ 1.00 lakh to the Prema Samajam‟ as one time donation for the benefit of it and the donations so collected were deposited in bank accounts held by it. Apart from the above, it is also learnt that some donations are extended .....

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..... no profit making activity is carried out by the assessee. Under these facts and circumstances of the case, we are of the opinion that without there being any doubt, the assessee is running its society in charitable lines and is deserves to be granted registration u/sec. 12A of the Act. 6. So far as ld.CIT(E) rejected the 12A registration on the ground that clause mentioned in the gift deed is not in accordance with law is concerned; we find that the above reason given by the ld.CIT(E) is not correct in rejecting the 12A registration to the assessee. Further, the ld.CIT(E) not at all examined what the assessee‟s activities whether assessee actually carrying charitable activities are not. Without doing so, the ld. CIT(E) picked up an ir .....

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