Section 12A Registration Without Evidence Set Aside | HC

Case Details: Commissioner of Income-tax (Exemptions) vs. Society for the Study of Liver Diseases - [2026] 184 taxmann.com 379 (Punjab & Haryana)

Judiciary and Counsel Details

• Deepak Sibal & Lapita Banerji, JJ.
• Ms Pridhi Jaswinder Sandhu, Senior Panel Counsel for the Appellant.
• Sunil Kumar Mukhi, Adv. for the Respondent.

Facts of the Case

The assessee-society applied for registration under section 12A, claiming charitable objects relating to liver disease awareness, treatment, and education. The Commissioner (Exemptions) found that receipts were largely from pharmaceutical company donations and expenditure was primarily on conferences. There was no evidence of activities such as helping poor patients or conducting research, and registration under section 12A was rejected.

The Tribunal, relying on submissions regarding additional activities, including the implementation of the ECHO project and related outreach, set aside the Commissioner (Exemptions) ‘s order and directed the grant of registration. Aggrieved by the order, the revenue filed an appeal to the Punjab & Haryana High Court.

High Court Held

The High Court held that the Tribunal granted section 12A registration solely on oral submissions, without pleadings, evidence, or notice to the revenue; such an order was unsustainable, and the matter was remanded for a fresh decision. It was fairly admitted before the Court that no evidence in support of the implementation of the ECHO project by the assessee in the prisons of the State of Punjab was placed before the Tribunal by the assessee. No application for additional evidence was also filed.

Therefore, it was clear that the Tribunal set aside the Commissioner (Exemptions)’s order only based on oral submissions made before it, unsupported by any pleadings or evidence, and this is legally impermissible. The fact that the assessee has been granted registration under section 12A for the financial years, which are subsequent to the financial years in question, cannot be made the reason to grant it registration under the same section for the financial years in question, because for registration under section 12A, its activities for the relevant financial years would be relevant.

Therefore, the matter was to be remanded to the CIT(E) for fresh consideration.

List of Cases Reviewed

• Order of Division Bench ‘B’ Income Tax Appellate Tribunal, Chandigarh, Dated 8-4-2019 [Para 13] – set aside