https://www.taxtmi.com/caselaws?id=767827 The ITAT Chennai allowed the appeal of a trust whose registration under section 12AB was cancelled by the CIT(E). The trust's primary objective was providing medical relief to diabetic patients, maintaining separate accounts for funds used to purchase insulin for free distribution to poor patients. The CIT(E) had rejected the renewal application, calculating 36.94% commercial activity receipts by presuming 50% of voluntary contributions came from the trust's diabetic clinic unit without evidence. The ITAT held that medical relief to the poor falls within the first three limbs of section 2(15) definition of charitable purpose, making the proviso inapplicable. The tribunal found the trust maintained separate books for its incidental commercial activities and that the CIT(E) erred in making unfounded assumptions about receipt sources. en-us Tue, 18 Feb 2025 00:00:00 +0530 Wed, 26 Mar 2025 06:50:39 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767827 The ITAT Chennai allowed the appeal of a trust whose registration under section 12AB was cancelled by the CIT(E). The trust's primary objective was providing medical relief to diabetic patients, maintaining separate accounts for funds used to purchase insulin for free distribution to poor patients. The CIT(E) had rejected the renewal application, calculating 36.94% commercial activity receipts by presuming 50% of voluntary contributions came from the trust's diabetic clinic unit without evidence. The ITAT held that medical relief to the poor falls within the first three limbs of section 2(15) definition of charitable purpose, making the proviso inapplicable. The tribunal found the trust maintained separate books for its incidental commercial activities and that the CIT(E) erred in making unfounded assumptions about receipt sources. Case-Laws Income Tax Tue, 18 Feb 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767827