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Section 10(23C) of the Income-tax Act, 1961 - Charitable/religious institutions - Assessment year 2009-10 - Petitioner, a registered society, was formed in 1975 and had been operating and managing hospitals, providing medical facilities and conducting family welfare programmes - It applied for registration under section 10(23C)(iv) - Respondent denied registration on ground that during past three years there were abnormal fluctuations in administrative expenditure incurred by petitioner; that books of account were not properly maintained as expenditure incurred were not supported by external voucher or other evidence - Respondent also concluded that income of petitioner was being siphoned off by debiting bogus expenditure and, therefore, it could not be said that it applied its income wholly and exclusively towards objects for which it was established - It was found that petitioner had submitted a letter dated 28-4-2009 with detailed averments giving explanations and justifications for expenditures it had incurred and respondent passed its impugned order on 30-4-2009 - Said details and explanation given by petitioner had not been examined and dealt with in order dated 30-4-2009 - Whether, since explanation/justification of petitioner had not been considered by respondent while passing impugned order, impugned order was to be set aside and matter was to be remitted back to respondent for fresh consideration taking into account law laid down by Supreme Court in 'American Hotel & Lodging Association, Educational Institute v. CBDT [2008] 301 ITR 86/ 170 Taxman 306 - Held, yes [Matter remanded] CASE REVIEW All India J.D. Educational Society v. Director General of Income-tax (Exemptions) [2011] 198 Taxman 443 (Delhi) (para 7) distinguished. CASES REFERRED TO American Hotel & Lodging Association, Educational Institute v. CBDT [2008] 301 ITR 86/ 170 Taxman 306 (SC) (para 5) and All India J.D. Educational Society v. Director General of Income-tax (Exemptions) [2011] 198 Taxman 443 (Delhi) (para 7). Ajay Vohra, Ms. Kavita Jha, Somnath Shukla and Amit Sachdeva for the Petitioner. Anupam Tripathi andMs. Anusha Singh for the Respondent. JUDGMENT Sanjiv Khanna, J -…

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