2022 (1) TMI 26 - AT - Income Tax

Physician Society Wins Appeal for Charitable Status: Tribunal Emphasizes Professional Bodies' Charitable Activities

Association of physician of India Versus CIT (E), Chandigarh

Association of physician of India Versus CIT (E), Chandigarh - [2021] 92 ITR (Trib) 642 (ITAT [Amrit]) Issues:1. Registration u/s 12AA of the Income Tax Act, 1961 denied by CIT(E), Chandigarh.2. Whether the activities of the appellant society qualify as charitable purposes.3. Interpretation of the law regarding registration of professional bodies under section 12A of the Act.4. Judicial precedents supporting registration of professional bodies as charitable institutions.Analysis:1. The appeal was against the order of CIT(E), Chandigarh denying registration u/s 12AA of the Income Tax Act, 1961 to the appellant society, an association of physician doctors of Malwa Region registered under the Societies Registration Act, 1860. The CIT(E) rejected the application stating that the society's activities did not bestow upon it the characteristics inherent in 'Charitable Purpose.'2. The Ld. AR argued that the CIT(E) erred in denying registration by not considering that the society's objects were charitable and genuine. The AR provided various case laws where professional bodies were granted registration u/s 12A of the Act, emphasizing that even professional bodies can engage in charitable activities. The appellant society focused on medical education, holding free medical camps, and organizing conferences for medical students and doctors in the region.3. The Tribunal acknowledged the importance of professional development through conferences and webinars for doctors, advocates, and CAs to stay updated with new technology. It was noted that holding conferences and webinars could be considered charitable activities, supporting the AR's contention. The Tribunal found merit in the argument that the society's activities were charitable and not merely guided by the principles of mutuality.4. Referring to judicial precedents, the Tribunal cited cases where registration was granted to trusts pursuing educational and medical relief activities. The Tribunal highlighted a case where the High Court ruled in favor of an urology society, emphasizing the importance of assessing the trust's objects and genuineness of activities during registration. Based on these precedents and the nature of the appellant society's activities, the Tribunal reversed the order denying registration and directed the CIT(E) to grant registration promptly.In conclusion, the Tribunal found the appellant society's activities to be charitable and genuine, overturning the CIT(E)'s decision and instructing immediate registration.