TaxTMI 
TaxTMI 
2010 (8) TMI 513
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....ideration the issues taken before him, passed the impugned order dated 29-1-2010 under section 12AA of the Act rejecting the application for registration made in Form 10A with the following observations : "5. In its written submission filed on 28-1-2010, the applicant has, inter alia, mentioned that "as per para 16.8 on page 6 of our MOU with the Government of Sikkim dated 12th March, 1992, we have to provide free medical treatment to BPL families of Sikkim in our teaching hospital (CRH)." This provision is clearly indicative of the fact that the medical facilities have been made nor the express purpose of solely catering to the needs of the people of Sikkim living below the poverty line. It is thus amply clear that the activities in providing free medical facilities only to the BPL people hailing from the state of Sikkim is clearly intended for the benefit of communities based in Sikkim and not for the people at large. 6. The applicant has stated in its submission, as above, that the institution is giving education which is of 'charitable purpose' as per the definition mentioned under the Act. As directed, the applicant-university submitted fee structure applicable to the do....
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....ts to provide medical relief and impart education through these establishments. Therefore, the Ld. Counsel contended that the objects attributable to charity in the sense of providing relief to the poor, medical relief and education were achieved by the assessee. He further pointed out that the CIT had not recorded any adverse finding to the extent that the statutory requirement has not been satisfied by the assessee. Thus, the two conditions, required to be fulfilled for the purpose of registration under section 12A of the Act, were satisfied in the instant case and as such the assessee is entitled to registration since its inception and the action of the CIT in refusing to register the institution under section 12A of the Act which is unjust and improper and is in contravention of the statutory position in this respect. 4.1 The Ld. Counsel for the assessee further argued that the Ld. CIT is not justified in rejecting the application for registration of the assessee due to his finding that the free medical facilities had been provided for the people living below poverty line in Sikkim State and not for the people at large. This observation of the Ld. CIT is contrary to the deci....
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....is not in consonance with the law and the facts of the case. 5. On the other hand, the Ld. D.R., appearing on behalf of the Revenue, only relied on the order of the CIT but could not contradict the arguments made by the Ld. Counsel of the assessee. 6. After hearing the rival submissions and on a careful perusal of materials available on record and the case laws relied on by the Ld. Counsel of the assessee, we find, that the Ld. CIT was not justified in refusing to grant registration to the assessee. We find that the jurisdiction of the Ld. CIT under section 12A of the Act is confined to satisfying himself about the charitable objects of the trust/institution and the genuineness of its activities and for this purpose, he is authorised to make such enquiries as he may deem fit. In fact, the objects of the Institution which is available at page 18 of the paper book read as under: "The objects of the University shall be: (a) to create a centre of excellence for providing health, medical care, educational and research facilities of a high order in the field of medical science and technology including medical education, hospital administration, technological education a....
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....e Income-tax Act, 1961. We also find that the Ld. CIT has made two observations to justify his order rejecting the application which, in our considered opinion, are not justified, keeping in view the statutory parameters of section 12AA of the I.T. Act. The first observation of the Ld. CIT is that the activities in providing free medical facilities only to the BPL people hailing from the State of Sikkim is clearly intended for the benefit of communities based in Sikkim and not for the people at large. In our considered view, it cannot create any hindrance in categorizing the activity of the assessee as charitable. In this context, the Hon'ble Supreme Court in the case of Ahmedabad Rana Caste Association (supra) has held as under :- "It is well-settled that an object beneficial to a section of the public is an object of general public utility. To serve a charitable purpose it is not necessary that the object should be to benefit the whole of mankind or all persons in a country or State. It is sufficient if the intention to benefit a section of the public as distinguished from a specified individual is present. The section of the community sought to be benefited must be sufficient....