ITAT Grants 80G Registration to Trust Aiding Cancer Patients

The Income Tax Appellate Tribunal (ITAT) overturned the CIT-III, Baroda's decision and granted registration under section 80G to the Trust. The ITAT found the Trust's activities aligned with charitable purposes, emphasizing assistance to cancer patients and provision of medical facilities. The Trust's objective to aid cancer patients and provide medical services on a charitable basis warranted approval, despite the CIT's initial refusal based on doubts about the Trust's purpose. The ITAT directed approval of Registration u/s. 80G for the Trust, emphasizing its charitable intentions towards cancer patients and medical services.

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Issues:
1. Refusal of Registration u/s. 80G of the Income Tax Act by the CIT-III, Baroda.
2. Interpretation of the Trust clauses and charitable activities.
3. Lack of Show Cause Notice before refusal of Registration.

Analysis:
1. The appeal was filed against the CIT-III, Baroda's order refusing Registration u/s. 80G despite the Trust fulfilling necessary conditions. The Trust applied for approval under section 80-G(5)(vi) of the Income Tax Act, 1961, for charitable activities related to medical facilities, especially for cancer patients.

2. The Trust's object, as per the trust deed, was to establish hospitals and nursing homes to provide treatment to cancer patients and medical facilities like blood bank, X-ray, Sonography, C.T. Scan, MRI. The CIT-III, Baroda contended that running a specialized hospital alone may not constitute a charitable activity, raising doubts about the Trust's purpose.

3. The Trust clarified its activities, mentioning donations of medicines to cancer patients and the provision of medical facilities on a charitable basis. The ITAT found that the Trust's objective to assist cancer patients and provide medical services on a charitable basis warranted approval under section 80-G(5)(vi), disagreeing with the CIT's decision.

4. The ITAT concluded that the Trust's activities aligned with charitable purposes, emphasizing the assistance provided to cancer patients and the provision of medical facilities. Therefore, the ITAT set aside the CIT(A)-III, Baroda's order and allowed the appeal, directing the approval of Registration u/s. 80G for the Trust.

5. In the final judgment, delivered on 15/05/2017, the ITAT overruled the CIT's decision, highlighting the Trust's charitable intentions towards cancer patients and medical services, thereby granting the Registration under section 80-G(5)(vi) to the Trust.

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