Deemed provision under S.12AA is not automatic and would need to be followed with a writ
Recently Allahabad High Court (Full Bench) has ruled that non-disposal of an application for registration before the expiry of six months as provided u/s 12AA (2) would not result in deemed grant of registration.
Assessee would need to file a Writ to compel CIT to consider application. [CIT vs Muzaffar Nagar Development Authority [2015-ITRV-HC-ALL-144]].
Consistent surpluses without adequate expenditure could loose non-profit status of an entity
In another case, taking a hard view on super hospitals operating under charitable provisions, the Bombay High Court has held that an institution consistently generating surplus which is utilized to procure assets, spending meager amount on treatment of poor patients is not existing solely for charitable purpose.
Even if exemptions have been granted in past (in this case under S. 10(23C)(via) this cannot mean that it can continue in future too. [M/s Yash Society vs CCIT [2015-ITRV-HC-BOM-145]]
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Socio Research & Reform Foundation (NGO)
512 A, Deepshikha, 8 Rajendra Place, New Delhi – 110008
e-mail: socio-research@sma.net.in
kindly explaine us the rule of Income Tax exemption on 12A certificate for NGO/NPO as Indian Income tax rule.